Land yacht business lease deal approved

Developers of a planned Blokart facility near Cromwell have got a second wind.

Ian and Sue McLellan, of Pisa Moorings, want to set up a track on vacant industrial land on the eastern side of the Cromwell Cemetery and hire out wind-powered land yachts. The land is owned by the Central Otago District Council.

The couple's proposal came before the Cromwell Community Board in July but was stalled until additional information was provided.

It was considered by the board again this week which resolved to lease 3.5ha for the Blokart operation.

Council property and facilities manager Mike Kerr suggested the rent be $5000 a year.

There were about 36 industrial sections available on the Cromwell market and a landbank of about another 50 sections, he said.

Usually, rental of industrial land was per square metre based on the land value.

Based on a 6% return on the rateable value, the rent on the land would be $58,000, but this type of business could not sustain that level of rental, Mr Kerr said.

As the use of the land would be recreational, the board could negotiate a lower rental.

He suggested a lease of three years and then annual renewals.

Mr McLellan said the lack of wind from May through to August meant the facility would close during those months.

Because of the set-up costs of the operation, he preferred a longer-term lease renewal of a further three years.

Wind measurements had been taken on several sites around the area, and this one was the most promising, he said.

Blokarts were designed and made in New Zealand and the potential market included people of all ages.

''A lot of schools do sail training with Blokarts.''

Businesses, tourists, locals, clubs and groups would all be targeted.

Blokart clubs had been set up in Invercargill, Christchurch and Greymouth and the only other South Island track was in Nelson, Mr McLellan said.

Because the site was near the Highlands Motorsport Park, the board agreed to consider a ''buy-out'' clause in the lease agreement so the land was not ''locked up'' if there was demand to buy the property.

The couple have to apply for the appropriate building and planning consents.

''Good luck to you with the Blokarts,'' board chairman Neil Gillespie told Mr McLellan.

''I'm pleased we didn't rush into a decision on day one,'' he said.

 


Blokart proposal

• Wind-powered land yacht operation

• Lease 3.5ha vacant council land for Blokart facility

• Next to Cromwell Cemetery's eastern boundary

• Operation would include a dirt track, pro store and dealership

• Open from September through to April


lynda.van.kempen@odt.co.nz

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