Housing shortage: Tauranga City Council to review revised plans for Parau Farms, Bethlehem

Left, the original housing plans for Parau Farms. Right, a revised version using less land to house people. Images / TCC

A plan to put homes on a Bethlehem reserve that once sparked controversy and concerns of “ghetto conditions” and more crime has been revised to nearly halve the residential area, while allowing for 300 homes.

Tauranga City Council will meet on Monday to potentially endorse an updated concept plan for Parau Farms, which would require a change in land use and zoning to allow for housing.

Parau Farms, also known as Pōteriwhi, is council-owned land near Wairoa River, south of State Highway 2.

The land falls in the rohe (home territory) of Ngāti Ranginui iwi and hapū Ngāti Kahu and hosts an orchard and annual grazing.

The council bought the land in 2000 as an active reserve with plans to turn it into seven sports fields, but in 2021 agreed in principle to use some of it for housing.

On Monday staff are expected to recommend commissioners approve the land use change and progress on a plan change to zone the land for housing, as well as request that Ngāti Kahu nominate two representatives to work with the council.

The council’s 2021 move to use part of the site for housing was prompted by the city’s housing crisis and came weeks after commissioners pleaded to the Government for help to tackle the city’s significant housing shortfall.

Consultation on a proposal to use 22 hectares of the site for housing, leaving 10.9ha for reserves, resulted in 153 submissions with just over two-thirds opposed and just under a third in favour.

Tauranga City Council commission chairwoman Anne Tolley. Photo / Alex Cairns

Concerns included potential impact on local infrastructure such as traffic and water, potential devaluing of neighbouring properties, plus loss of green space and natural environment.

At the time, local residents said the plan was of “great concern” as Bethlehem was a premium suburb and should remain one; the reserve was bought by ratepayers for the exclusive use of sports recreation and Bethlehem was already lacking space for this; and there were concerns high numbers of state homes could result in higher crime rates and “ghetto conditions”.

Environmental advocate Mary Dillon said Parau Farms was “probably the most prime piece of land in Bethlehem” and greenspace should be considered highly-prized infrastructure of any city.

“It appears that the sole reason that this property is being considered for housing is because council cannot meet its view on how land should be provided for future housing needs in line with Government future requirements. Seems to me to be a bit like robbing Peter to pay Paul,” Dillon said.

Residents in support stated Tauranga was in “desperate need of houses, not nice-to-have projects”, and it would be good to offer homes to first-home buyers.

On February 8, 2022, the council deferred its final decision.

In a report prepared for Monday’s meeting, council principal strategic adviser Nick Chester said the need for increased housing supply remained critical.

A revised concept plan of potential housing and other plans for Parau Farms, also known as Pōteriwhi.

Council staff used the feedback on the original proposal to revise the plan resulting in “a mixed-use model, incorporating housing alongside recreational and cultural uses”, he said.

The revised plan reduced the 22ha originally poised for housing to 11.4ha.

The homes were expected to be built under medium-density standards, allowing for about 300 homes. These were expected to be a mix of market and affordable housing.

“This in turn will reduce reliance on infrastructure in the area, which was a major concern through the consultation process,” Chester said.

Chester said further analysis of housing numbers was still to come.

The plan also proposed to retain land for three sports fields, passive reserve/stormwater and river access, with the remainder of land for housing, he said.

A historic reserve, cultural reserve or open space, community facilities, and ecological enhancement were also expected.

Advantages of this revised version were listed as striking a balance between housing needs and concerns around the provision of open space, creating a more mixed-use approach initially favoured by Ngāti Kahu, and providing 11.4ha for housing.

Disadvantages were that it reduced opportunities for recreational space in the city, increased the need for infrastructure in Bethlehem and put increased strain on existing infrastructure.

Keeping the land as the status quo reduced reputational risk to the council that came with a change in land use, better aligned with the majority of submissions and provided more space for recreational and cultural use as initially intended.

However, it continued to put a strain on housing provisions that would need to be met elsewhere.

Chester said the next steps from Monday would be that staff would continue to develop the plan through an engagement process with Ngāti Kahu. Staff would also start preparing a structure plan and plan change to enable to mixed-use development, which would include rezoning land.

In 2021, commission chairwoman Anne Tolley said in a statement that a lot had changed since the council bought Parau Farms to provide sports fields.

“Back in 2000, who would have predicted lockdowns, compulsory face masks and average house prices in Tauranga topping $1 million? Tucked in behind the Bethlehem CBD, the land at Parau Farms is ideally placed to help us deliver more affordable, quality homes. It’s close to shops, schools and other amenities and it’s on a passenger transport route. Given our extreme housing shortage, we owe it to our communities to look into that further.”

A more developed concept plan was expected to be presented to the council for approval later this year.