A proposal to build an eight-storey residential apartment building on Hinau St in Mount Maunganui has been withdrawn by the developer. Photo / Brydie Thompson
Mount Maunganui residents are “worried” and questioning what will happen to a prime piece of neighbourhood land after a proposal to build an eight-storey residential apartment building was withdrawn.
The Bay of Plenty Times reported in March last year that a 29.95m-high residential apartment building with up to 65 units and 54 car parks had been proposed for a Tauranga City Council-owned site in Mount Maunganui.
At the time, neighbours against the proposal cited concerns that traffic would increase and infrastructure would be inadequate in accommodating population growth.
The developer said there was “significant demand” in the suburb, and communities in high-growth areas must realise urban environments would change – similar to other cities worldwide.
Structure Properties Limited applied to the council for resource consent to redevelop 8 and 10 Hinau St.
The company said last week that it did not proceed with purchasing the site as it “couldn’t come to an agreement” with the council.
The council has taken the property off the market, saying it could not achieve “desired strategic outcomes” from selling in the current market.
Resource consent hearings for the proposal had been scheduled for July 31 and August 1, 2024.
Seagulls Guesthouse landlord Sue Dunbar, whose building is next to the site, said she had planned to speak in opposition to the proposal at the hearing.
Her main concerns were potential ground movement from construction, potential damage to her building, and the building being “shadowed out completely”.
On May 30, 2024, Dunbar was advised by the council that Structure Properties had withdrawn its application.
Now, Dunbar said, she was “more interested” in knowing what would happen at the site.
“It’s a big, valuable piece of land.
“We’ve got to be realistic – it’s going to be developed.”
Mount Maunganui resident of 67 years Susan Hodkinson had also planned to speak in opposition to the proposal at the hearing.
Hodkinson previously said she was concerned about the Hinau St building, in her view, “stealing” the sky, sunshine, and parking.
In her council submission, Hodkinson said Mount Maunganui was “full” and believed the proposal would lead to it being “over capacity”.
When she found out the proposal had been withdrawn, Hodkinson said she felt “relief that the status quo will remain for a little while”.
“But I am really worried about what will be built ... ”
In a statement, Structure Properties director Shannon Moyle said the company “couldn’t come to an agreement” with the council.
He said the council did not allow it to extend the due diligence period, “which would have allowed the additional time required for the resource consent process to unfold, inclusive of a council hearing”.
He said the price, conditions, and due diligence period led to the company cancelling the agreement.
Moyle said its offer was declined in late October 2024.
He said the company did not have any other planned projects for Mount Maunganui or its surrounding areas “at this stage”.
“While [Structure Properties] is keen to advance on a number of projects, we are currently in a holding pattern.
“This is primarily due to current uncertainties associated with the regulatory/construction ‘environment’ and market conditions generally.”
The council’s strategic and commercial property team leader, Alicia Oldham, said the buyer did not proceed with buying the site and cancelled the agreement “for non-satisfaction of the purchaser conditions”.
The council said it was informed in May 2024 that the purchase would not proceed.
“The property was withdrawn from the market as the council wasn’t able to achieve desired strategic outcomes from the proposed sale in the current market.”
The property had not been sold, and the council was not aware of any other consent applications for the property, she said.
Oldham said the council had classified the property for “strategic disposal” under its property acquisition and disposal policy.
“Any sale will be subject to council approval on any terms of sale, including sale price and strategic outcomes.”
Council chief financial officer Paul Davidson said: “As this property did not sell, this will come back to the council as part of the divestment of properties process to ensure we can get the best possible outcome.”
The Hinau St site was formerly an elder housing village - one of two the council set aside for private sale when it sold the rest of its elder housing portfolio to Kāinga Ora in 2022.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and Rotorua Daily Post. She has been a journalist since 2021.