Funding raises questions

Queenstown residents say major consultation is needed over plans to spend $50 million in Government loans on infrastructure.

It was announced yesterday the Queenstown Lakes District Council was successful in three bids to the Government's $1 billion Housing Infrastructure Fund.

The $50 million can be used to fund new roads and water infrastructure at Queenstown's Ladies Mile and Quail Rise, and at Kingston.

But the resulting 3200 projected homes has residents worried. They fear their voices could be lost in the rush to spend the money and tackle the resort's housing crisis.

In Kingston, the Government has approved a $23.6 million loan for water infrastructure.

The community has been pushing for new water supply and disposal for 30 years.

But the potential 950 new homes over a decade would quadruple the township's size.

''It's pretty exciting news about the water infrastructure and this council is making things happen,'' Kingston Community Association chairman Athol Elliot said.

''But there needs to be some serious consultation.''

Mr Elliot said new roading was a must, especially an intersection with State Highway 6, as most new residents would be Queenstown commuters.

He also wanted to ensure existing properties benefited.

''Otherwise, all we have is a satellite suburb with all the infrastructure.''

The plans for Ladies Mile are more contentious.

The greenfield land, a gateway to Queenstown opposite Lakes Hayes Estate, has been identified as a possible location for a special housing area (SHA).

An eight-week public consultation process is under way.

But the Government has announced $12.6 million is available to fund infrastructure, enabling 1100 homes to be built there over 10 years.

''I'd be intrigued to know what conditions are in place for that funding from central Government and I would very much hope that those conditions and the approval of funding will not cloud any future decision-making process about the future zoning of that site,'' Lake Hayes Estate Community Association chairman Clark Pirie said.

He pointed out that once it became SHA land, the community would not have much of a say.

Quail Rise resident Terri Anderson asked whether the funding meant the Ladies Mile decision was ''a fait accompli''.

She said the Quail Rise land earmarked for $10.3 million for 1150 homes, with a new link road, underpass and water infrastructure, was always under threat.

It is opposite the new Frankton Flats big box superstore developments and also the industrial area Glenda Dr.

''It was always going to be a matter of time before the old Thompson paddocks disappeared,'' Ms Anderson said.

''It's sad but it's inevitable. I would rather be the sacrificial lamb here rather than Ladies Mile, because once you open up that it's infilled all the way to Arrowtown.''

She says more downtown residential blocks are needed rather than ''more satellite commuting communities''.

QLDC has freed up land near the town centre for development, and created an SHA on Gorge Rd, but developer interest has been minimal.

Queenstown Lakes District Mayor Jim Boult said ''important conversations'' were still to be had with the community.

''I want to stress what we have previously said in regard to this fund: it opens the door to supporting further consideration of development in the area but it doesn't pre-empt any process that will need to be gone through with the community before any development proceeds.''

He said Ladies Mile was an example of that.

QLDC chief executive Mike Theelen said the Government was attempting to make it easier to create much-needed new housing stock.

The money was an interest-free loan, repayable through development contributions.

''It's still got to go through a process, whether that's an SHA process, the normal district plan process, or a private plan change,'' Mr Theelan said.

paul.taylor@scene.co.nz