Property values on Muttontown Rd near Clyde will drop considerably if the redesignation of land for wastewater treatment proceeds, residents say.
George and Nickie Gallagher, who own Claudleigh Estate Ltd, a vineyard on Muttontown Rd beside the council land, told redesignation hearing commissioner John Matthews an independent valuer had told them the values of properties in the area could drop by 45%-55%, or up to $800,000, if the designation was put in place, and that was without a wastewater plant even being built on the site.
The location of the plant would stop the expansion of Clyde, Mr Gallagher said.
The land on Muttontown Rd runs back to the Clutha River, and would be used in the future to build a treatment plant to treat wastewater from Clyde.
The Central Otago District Council has applied for the redesignation of the 5.3855ha site, after it lapsed in 1998.
A notice of requirement was lodged and drew 32 submissions.
The Vincent Community Board was the only submission in favour, one was neutral and the remainder were opposed.
Some submitters had bought land in the past few years and had not known the designation would be renewed, and said there had been no indication on their land information reports.
John Sutton, of Muttontown, read several letters from people who had been away when submissions were called last June, or who had bought land more recently and had no idea the redesignation was being sought.
On behalf of the CODC, utility services manager Peter Greenwood said he had looked for an alternative site but none would be as suitable as the existing site, as it had the right amount of fall, it was flat, no houses were within 150m of it, it was owned by council, and it was close to the river should that be required to discharge treated effluent.
He said options such as pumping the effluent to Alexandra's treatment station had been considered.
That would involve 9km of piping, and Clyde people would have to pay for part of the treatment station.
Opus Consulting principal John Crawford gave a detailed report on the suitability of the land and reassured submitters oxidation ponds were highly unlikely to be the choice of the future, as the new treatment plants did not require them.
Mr Greenwood said the council would be happy to include a condition to that effect.
While acknowledging some odour could result from any new plant, Mr Crawford went into detail to explain how that would be controlled and it would only be the odour of a light compost as opposed to a "long-drop toilet".
Mr Matthews reminded submitters this was a redesignation hearing and not an application to build a treatment plant.
Submitters said they could not make informed decisions about the land if they did not know what would be built there.
The hearing concludes today.