Conditional contracts are in place for the occupancy of a proposed $2 million commercial building in Cromwell.
The Central Otago District Council is negotiating with parties interested in leasing the top floor of the planned two-storey complex, while an expanded Cromwell Medical Centre is set to occupy the ground floor.
Council property manager Mike Kerr said a letter of agreement had been received by potential occupiers of the second storey, although it could be months before an arrangement was confirmed.
"We've all but got something confirmed for upstairs. Both upstairs and downstairs are subject to final concept drawings and cost estimates."
The medical centre, which currently occupies premises owned by the council, will pay market value for the lower level of the new building.
In May, the Cromwell Community Board considered four submissions on its proposal to construct the building on land it owns on the corner of Waenga Dr, near the Cromwell Mall.
At the time, board chairman Neil Gillespie said funding of up to $2,050,000 would be provided from the council's reserves account until it received the proceeds from the sale of the lower level of the building.
The net estimated cost to the council would be $600,000 in the worst-case scenario, but that figure would be offset by returns from the sale or lease of the top storey, he said.
"So that means the cost to ratepayers is likely to be zero," Mr Gillespie said.
