That prospect was raised by Kingston Community Association chairman Athol Elliott, who says residents remain concerned about plans to more than quadruple the township’s population with 950 new homes.
Minister of Housing and Urban Development Phil Twyford yesterday confirmed a $52 million central government loan to the Queenstown Lakes District Council (QLDC) for infrastructure.
The 10-year interest-free loan, from the $1 billion housing infrastructure fund, will be repaid through developer contributions.
It is earmarked for the small township of Kingston, at the southernmost end of Lake Wakatipu, on the border between Central Otago and Southland, and also Quail Rise South, in Frankton.
Mr Twyford said the infrastructure in Kingston to support new housing included new water supply and sewage treatment plants.
"There will also be stormwater network infrastructure for the existing town and new development, along with the reticulation of water supply and wastewater to the existing area.
"This will support Kingston’s development as a more affordable housing location in easy reach of Queenstown."
The first of 950 houses are expected in 2020. The existing population was between 300 and 400, and "growing daily", Mr Elliott said.
"The question at this point is: what cost to the existing residents?" he said.
"QLDC have told us the cost of connecting to the infrastructure put in place is going to be tagged on to our rates."
He also questioned how the development would affect the existing township.
"One of our biggest issues is going to be the road between Kingston and Queenstown.
"It’s already what we’d term second-rate and ... undoubtedly treacherous, although barriers have recently been installed and we appreciate that.
"These are some of the things that need to be looked at - there’s just more to it than a government loan."
At Quail Rise South, it will enable 900 new homes with the next 10 years.
Infrastructure will include a reservoir and water mains, a gravity wastewater main, and connector road to State Highway 6, bus stops and a pedestrian underpass to the Frankton Flats commercial area.
Mr Twyford said finalising the loan from the housing infrastructure fund was a great example of how central and local government could work together to address New Zealand’s housing crisis.
The loan was first announced in July last year by Nick Smith, who was building and construction minister under the last government. National housing spokeswoman Judith Collins said yesterday: "Today’s announcement is not the first time Mr Twyford has rehashed National’s housing announcement as his own.
"Labour had many years in opposition to come up with a housing policy and initiatives to implement. All we have seen so far is a re-badging of National’s housing announcements, risking taxpayer money and broken promises for Mr Twyford’s KiwiBuild project."
Mrs Collins said National had a "comprehensive" housing programme under way to increase supply, which included the Queenstown-Lakes Housing Accord.
The housing infrastructure fund will enable at least 28,000 new dwellings in high-growth areas over the next 10 years.
