Housing development set for winery

Increased urbanisation is forcing Mills Reef Winery to redevelop its Bethlehem site to fund a relocation to a more rural Western Bay of Plenty site, says director Tim Preston. Photo / John Borren

Tauranga's Mills Reef Winery is planning to transform its 12.5-hectare Bethlehem site into a medium-density housing development.

Responding to a spate of industry rumours that the Mills Reef site had been sold, director Tim Preston said the company was working with Tauranga's Classic Builders on a potential redevelopment plan.

The blueprint being developed with Classic Builders calls for the winery to make way progressively for modern, low-level houses in the style of a lifestyle precinct. The park-like qualities of the 12.5ha site would be retained and it was envisaged the existing winery and restaurant buildings would serve as a focal point.

Classic Builders director Peter Cooney said the aim was to do an intensified development that retained the characteristics of the site.

"The land has become so valuable that if Tim doesn't develop it, someone else will come along and buy it off him," said Mr Cooney.

"It's just one of those properties that has to be developed sooner or later."

The winery expects to file a resource consent application with Tauranga City Council after Christmas, and the first stage of development could begin next year, although the full development could take up to 10 years. Mr Preston said rumours the site had been acquired for retirement villages were untrue. He said growth would be constrained on the existing site and directors saw the need to begin long-term planning to relocate.

"Our business expansion calls for more overnight production, with an increase in heavy-traffic movements. Clearly, we will outgrow this site and to secure the future of the winery and our functions venue, we must start to look for a new home of a comparable standard somewhere near Tauranga."

When Mills Reef opened on Moffat Road in 1995, it was in a rural landscape, with full winemaking and bottling facilities, two underground barrel cellars, an aged-wine cellar, and spacious wine-tasting areas. The 150-seat restaurant and function venue is a fixture of the local events landscape.

But now the site was near a major suburban mall, schools and surrounded by housing with a cluster of retirement villages nearby. Mr Preston said urban sprawl meant the wine-making business needed to move to a more suitable location in the Western Bay of Plenty in the next decade. "We are looking to expand the business to take advantage of our continuing success in the industry. But our advisers warn us that our plans will come under increased pressure now the site is surrounded by houses," Mr Preston said.

Mills Reef general manager Nick Aleksich said "We will ensure the relocation is seamless and it is really exciting to think we can now design a stunning venue from scratch, incorporating all we have learned here over the past 20 years," he said.