Sale proceeds will reduce TCC debt

At least $3 million is expected to be sliced off Tauranga's civic debt by the sale of half the block of prime council-owned land in Maunganui Rd.

The council has decided to sell or lease 8000sq m of the land occupied by Zespri's head office, the Mount Maunganui Library and Plunket Preschool.

Yesterday's decision was the result of overwhelming opposition from Mount residents against the sale of the whole 1.6ha block.

It would have forced the library and preschool to shift and lost the parkland used by Little Big Markets at the southern end of the site.

Proceeds from the sale will be used to further reduce the city's debt, which was expected to drop to $310m once the $64m Route K debt was off the council's books.

The council opted to restrict the sale area to the southern half of the block, meaning the 3500sq m of parkland will move to next to the preschool once the former Mount Borough Council building that housed Zespri was demolished.

A bid by Councillor Rick Curach to ensure that the 8000sq m stayed in council ownership by restricting disposal of the land to a lease was overwhelmingly rejected.

One of the options going out to the market was for a leasehold deal.

Council-owned land to be sold for development
Fears ease over preschool and library

He said Zespri would be a key bidder in the process and he understood it would be quite amenable to a lease.

Zespri's communications manager Oliver Broad told the Bay of Plenty Times, after the meeting, that the company had a long history at the Mount location.

"We will continue to evaluate the potential of the site as a long-term solution for our headquarters, together with reviewing some other alternative options."

Zespri's submission to the council in March unveiled a plan to use the whole 1.6ha site to create a "world-class development".

The manager for Zespri's supply chain development Simon Chisholm had said they needed a modern, fit-for-purpose office, and the council land was one of four shortlisted sites in the Bay.

The company's vision was for a development that met the needs of the kiwifruit industry, international visitors and the local community.

Councillor Steve Morris told yesterday's meeting he supported the leasehold scenario but was unable to vote with Cr Curach because it excluded debate on a freehold sale.

Cr Morris persuaded the council to next year consider the option of using some of the sale proceeds to improve the Mount Library.

Cr Kelvin Clout said the council had come up with a win-win situation that would please the majority of residents and answer concerns about reducing debt but not in a crazy manner.