A conditional agreement for the sale of the 22 properties associated with the former Bella Vista subdivision has been reached.
Tauranga City Council made the announcement today saying that locally-based Classic Group that owns Classic Builders would build a number of homes on The Lakes site.
The council's general manager of strategy and growth, Christine Jones, said it was "satisfying" to know that a "reputable local employer will develop these properties to provide housing for our city".
Classic Builders was the largest residential builder in the Bay of Plenty and has been building homes at The Lakes since the development's inception.
"We have a vision for the site and will work to achieve a positive outcome for the future homeowners at the site," Classic Builders director Matthew Lagerberg said of the rebuild plans.
The council ordered the site to be evacuated in March 2018 after it had been partially built by the now-liquidated developer Bella Vista Homes.
Last December, the council sought registrations of interest from developers.
Developers who expressed interest were short-listed early this year, and a conditional sale agreement was signed last month.
The subdivision's 22 properties have been sold as one package to make it easier for the buyer to build a retaining wall through the site.
The lack of a suitable retaining wall was one reason why the council evacuated the properties.
The sale price will remain commercially sensitive and confidential until the agreement goes unconditional early next year.
The council has prosecuted through the courts some individuals who were involved with the subdivision. The court decision was pending.