Premium industrial land scarce

Energetic builder Bob Clarkson is fast running out of suitable land to construct his big industrial buildings and as a result Tauranga is losing some vital business.
Mr Clarkson told Tauranga city councillors this week that he lost three potential tenants because he couldn't offer premium industrial land for bulk storage and high stud buildings.
"I'm talking about buildings from 4000 sq m to 40,000 sq m in size requiring high loading capability. I couldn't put the pressure on [in negotiations] for more business to this city and that's what we need in tough times," he said.
The company wanting to use a 40,000sq m warehouse planned to be near a port or airport and it had chosen a site next to Hamilton Airport, Mr Clarkson said. He was also talking to a tenant who wanted to lease a 16,000sq m bulk storage building.
Speaking in the public forum segment, Mr Clarkson predicted that industrial growth will stall for three years until more high grade industrial land is made available.
During the past 17 years, Mr Clarkson has developed about 50 hectares of industrial land in Maleme St, MacDonald St, Aviation Ave and on airport-leased land around Jean Batten Drive, including a 17,000sq m grain store.
He is finishing off two more buildings in that area, and will then run out of space.
Mr Clarkson's building team has just completed a 5000sq m assembly plant for Kiwi Bus Builders at Tauriko Business Estate on "the last available [developed] land that will not sink."
He is completing a smaller 1000sq m building nearby in the estate, but after that he's not sure where to turn.
"The bus assembly factory is on the toe of an original hill and that land is fine," said Mr Clarkson. "But geotechnical reports show other developed industrial land at Tauriko estate [in stage one] will sink 150mm-450mm during a 50-year period, which is totally unsuitable for large buildings.
"This area is only capable of having a live load of 10kpa, equivalent to one tonne per sq m or one pallet of kiwifruit stacked only one high.
"You cannot park a fully loaded container as it will exceed the maximum of one tonne per sq m," he said.
Mr Clarkson's big buildings require a high loading capability of up to 10 tonnes per sq m. The buildings could be designed specifically to overcome the loading problem, but this will add to the costs of construction and rents.
He said the developed industrial land at Tauriko estate, which hasn't yet been built on, was entirely suitable for light buildings such as service centres and workshops, as found in Birch Ave and Koromiko St, but not for large constructions.
Bryce Donne, director of Element IMF New Zealand, the company managing Tauriko Business Estate, said long term settlement, of the land, in some parts of the front end of the development was expected.
"It's been designed by professionals with that in mind. The sections [in stage one] are smaller and cater for light industry that generates higher employment than bulk stores," he said.
"The location of light industry in the front is a function of the ground conditions and is appropriate by linking in with the proposed shopping centre and The Lakes residential area. You don't want them looking at dirty factories."
Mr Donne said there will be plenty of opportunity to construct bigger, heavier buildings further down the valley in stages two, three and four.
"The locations of the bulk stores and factories will be more discreet. They don't have daily customers and don't need the same profile and they will be out of the direct public eye," he said.
Mr Clarkson wanted to rezone 20ha of his rural Tauriko land industrial across the main road from the business estate and behind the petrol station. His submission was rejected by Tauranga council's hearings committee considering the new City Plan.
He said he could have built the 40,000sq m and 16,000sq m buildings on that land which he regarded as suitable for heavy use. Since Mr Clarkson's land crossed the boundary, the hearings committee felt it needed to consider all of his 210ha down to the Wairoa River in conjunction with the Western Bay of Plenty District Council.
He urged Tauranga councillors to "take urgent action and change the decision of the committee that rejected my request for premium industrial land."
He was told that he could lodge an appeal with the Environment Court and then discussions would take place with council.
Tauranga City Council is opening up 100ha of industrial land at Wairakei in Papamoa East, there are plans for the Rangiuru Business Park near Te Puke, and the Tauriko Business Estate developer has done 20ha of earthworks for stage two up to Gargan Rd but roads and services haven't yet been completed.
Mr Clarkson said the new industrial land at Papamoa East and Rangiuru was in the wrong direction. "The next cities you are dealing with are Hamilton and Auckland and the land should be on the other side of Tauranga.
"You can't offer any more premium industrial land unless you lend money to the developers. We will be sitting on our hands for two to three years before more land with better loading capability is allocated," he said.