$50m to help Queenstown housing development

Queenstown has been offered $50 million in what is effectively a loan to build roads and water infrastructure in three new areas to be developed for housing around the ever-expanding township.

The funding, which must be repaid, is part of the Government's $1 billion housing infrastructure fund, announced in this year's budget. Details were announced this morning.

Auckland, Hamilton, Waikato and Tauranga councils are to receive the lion's share of the funding, which will be used to provide network roading and water infrastructure for 60,000 houses across nine projects in these five fast-growing urban areas.

Kingston. Graphic: Supplied

In Queenstown, the funding is earmarked for new infrastructure at two greenfields sites, at Quail Rise South and on the Ladies Mile and an extension of the Kingston township.

The Government claims it will enable 3200 homes to be built over the three sites, in some cases years earlier than otherwise.

Construction Minister Dr Nick Smith  said adding the "big new subdivisions'' would help lift the supply of residential sections and provide more options for buyers.

If the Queenstown Lakes District Council approves the projects, the $50 million would be divvied up three ways.

Quail Rise South. Graphic: Supplied

The lion's share, $23.6 million, would go to Kingston, where infrastructure networks for water supply, waste water and storm water would be built allowing an additional 250 homes to be built in the next five years and another 450 in the five years after that.

At Quail Rise South $10.3 million would be allocated for projects including a SH6 connector road, a ''collector road'', and pedestrian/cycle underpass and stormwater,  wastewater and water mains work for an additional 1150 homes to built there over the next 10 years.

On the Ladies Mile, $12.6 million would be available to build SH6 connections, public transport access, and water, wastewater and stormwater mains systems allowing an extra 1100 houses to built in that area over the next 10 years.

Ladies Mile, north of Frankton. Graphic: Supplied

All the money would be available to councils to draw down in the 2018-19 year. Water infrastructure would be funded by interest-free loans of up to 10 years, with extensions to loan periods to be considered, but with interest charged at commercial rates.

Roading and transport infrastructure would be funded through the National Land Transport Fund, which would accelerate its funding for each project but claw it back in later years through reduced payouts.

Dr Smith said planning constraints on new subdivisions were freed up through special housing areas and reforms to the Resource Management Act, but areas zoned for residences could not be built on without infrastructure.

"We will be working closely with the councils and developers to ensure these projects are progressed at pace.''

The next step was for councils to complete detailed funding agreements with the Government over the next few months.

There was also a huge amount of work required on resource consenting and construction of the works, Dr Smith said. 

$1 billion housing infrastructure fund - where the money is going

• Auckland Council: $300 million (10,500 houses) _ Greenfield development (North-west) at Whenuapai and Redhills.
• Hamilton City Council: $272 million (8,100 houses) _ Greenfield development (Peacockes) on southern edge of Hamilton.
• Waikato District Council: $37 million (2,600 houses) _ Te Kauwhata (new development on the shore of Lake Waikare).
• Tauranga City Council: $230 million (35,000 houses) _ Greenfield development at Te Tumu (eastern end of Papamoa) as well as a capacity upgrade to the Te Maunga Wastewater Treatment Plant and a new (Waiari) water treatment plant (at Te Puke).
• Queenstown Lakes District Council: $50 million (3,200 houses) _Two new greenfield sites (Quail Rise South and Ladies Mile) on the Frankton Flats and an extension of the Kingston township. 

- Staff reporter