A law change allowing the Crown to repurpose publicly owned land for private housing development is being passed through Parliament under urgency this week.
It removes one potential stumbling block for an SHA proposed by the Queenstown Lakes District Council for large chunks of land on either side of Gorge Rd.
Approved by the Government in June, the SHA includes the Wakatipu High School site, which will become vacant in 2018 when the school relocates to Remarkables Park.
Clutha-Southland MP Todd Barclay told the Otago Daily Times there was potential under existing law for the previous owner of the site to have the first right to buy it back, putting at risk its ability to be used for much-needed worker accommodation and affordable housing.
The amendment removed the risk of that happening, Mr Barclay said.
It means Ngai Tahu now has first refusal on the 4ha site, which does not include the school's playing fields.
Mountain Scene reported last December the iwi is interested in buying the property.
Mayor Vanessa van Uden and council planning and development general manager Tony Avery were unaware yesterday of the imminent law change or its implications for the school site.
The council proposed the Gorge Rd SHA last December. It encompasses land across Gorge Rd from the Caltex corner down to and including Gorge Rd Retail Centre.
