A $25-million shopping centre in a rundown part of Tauranga will include a big-name supermarket and two drive-thru fast-food restaurants - and create 400 jobs.
The centre - on a 2ha Cameron Rd block between 22nd Avenue and the new Mitre 10 Mega store - will also pump about $8 million in wages into the local economy.
Long-awaited details of the new convenience shopping centre have been revealed by land owner Dean Waddell.
The DIY megastore opened eight months ago but before then, Gate Pa had been neglected in terms of residential and commercial development.
But Mr Waddell, operating through his JWL Trust, will establish 19 speciality shops, two fast-food outlets, a petrol station and anchor tenant New World supermarket.
Foodstuffs (Auckland) has bought some land off JWL Trust to build a 3200 sq m supermarket employing 200 people. It will open during the second half of next year.
The development has resource consent and Mr Waddell hopes to have the shopping centre finished by the end of March, with building beginning in September.
Mr Waddell said the complex would change the rundown image of Gate Pa and improve everyone's property values in the area.
Murray Jordan, general manager of Foodstuffs' property strategy division, said continued residential growth in the areas surrounding Gate Pa has created demand for a supermarket.
"An advantage of the site is the development will be on the left hand side of Cameron Rd for people as they drive out of town at the end of the day," said Mr Jordan.
It is the second New World supermarket to be built in Tauranga - the other in Brookfield is run by Mr Waddell. Under Foodstuffs' policy, New World Gate Pa will be operated by a new franchisee.
"You are always worried about competition but the town is growing like mad and we came through unscathed after Countdown opened in Bethlehem," said Mr Waddell.
"From a development point of view, we needed a traffic driver for the new shopping centre and this is limited to supermarkets or big stores like The Warehouse and Farmers. We will be helping Foodstuffs maintain its market share in the district," he said.
The nearest supermarkets are Countdown in Greerton and Foodtown on Cameron Rd between 13th and 14th Avenues.
The new shopping centre has been five years in the making after Mr Waddell and Bob Clarkson swooped on the 6.6ha block fronting Cameron Rd from 22nd Avenue to the Gate Pa Domain including Munro St.
They bought 32 houses and 20 commercial buildings. But since the big buy-up, the speedway mates split the land up.
Mr Clarkson built the orange Mitre 10 Mega and Mr Waddell pushed ahead with the shopping centre plans.Tauranga-based consultant Peter Williams of Boffo Property is in the final stages of negotiating tenancy contracts with two fast food operators and one of the four major petrol companies.
There was also strong interest in the shops which will range in size from 100 sq m to 600 sq m.
$25m flowing in to Gate Pa
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