The Tauriko Business Estate in February 2021. Photo / George Novak
One of Tauranga's last undeveloped rural areas could make space to provide the city with 1100 businesses resulting in 16,600 jobs.
That's only if the Tauranga City Council agrees to rezone the hundred-hectare space into an industrial area, members of the council's Strategy, Finance and Risk Committee were told yesterday.
Representatives of Element IMF, developer of Tauriko Business Estate, presented to the committee, requesting a plan change to local legislation to rezone the area in Tauriko west. The area is bordered by the Omanawa River and Belk Rd/State Highway 29 and is hoped to provide industrial land to meet escalating demand.
Council city and infrastructure planning manager Andy Mead said before the presentation began that there was "very high demand for industrial land but very little supply".
Tauranga Business Estate director Bryce Donne told the committee, which includes the city's four commissioners, the plan change would help developers complete Stage 4 of the Tauriko Business Estate, which would become a continuation of the estate to the south.
Donne said his team had been involved with the Tauriko Business Estate project since 2004 and the first zone was done in 2006.
"By and large, it has been pretty successful. We had a bit of a lull with the GFC (Global Financial Crisis) but since then, demand has been running about 20 hectares per annum.
"There is almost nothing left."
In February, the Local Government Commission transferred the land from Western Bay of Plenty District Council to Tauranga City in preparation for rezoning plan change progress.
Boffa Miskell planner Sean Grace said the request for rezoning came down to demand and "lack of supply".
"Stage 4 seems to satisfy demand for the next three to five years. Pretty much, all of the existing industrial zoned land in Stages 1 to 3 are to be fully developed on land to be taken out within the next 12 months."
Grace told the committee the estate was "really well positioned" due to his prime location next to residential zoning, The Lakes, and a strategic roading corridor, SH29.
Stage 4 was expected to bring 1100 new businesses and 16,600 jobs once it was fully built out.
Grace said the intent was to formally lodge the plan change request early next year through a Streamlined Planning Process (SPP) which was faster but also limited appeal rights.
The process would also require the council to apply to the Minister for Environment to use the process, and for the minister to become the decision-maker on the plan change request.
Commissioner Stephen Selwood said he certainly acknowledged the need to "unlock land".
"It is clear that we need to do better as a city as to how we integrate commercial and residential land use."
However, Selwood queried what efforts had been made by developers to encourage different transport options "given now we have central Government incentives particularly around carbon reduction ... etc".
Donne said Stage 4 plans already included a main road with a bus lane and walking and cycle paths on each side but it was still a "work in progress".
Commission chairwoman Anne Tolley asked what involvement mana whenua had in relation to the plans for Tauriko Business Estate.
In response, Element IMF development manager Grant Downing said that since 2004 they have been in touch with mana whenua "on a consent by consent" basis.
"In our discussions with them about Stage 4, they seem supportive. We will prepare the full proposal for them for the committee before moving forward."
As part of the Streamlined Planning Process, the local iwi authority must be involved.
Asked what the developers' biggest challenges were expected to be to the completion of Stage 4, Grace said the SH29 connection was a "significant impediment" but they were already in discussion with Waka Kotahi NZ Transport Agency regarding this.
Stormwater was another challenge, Grace said.
Tolley said enabling works to help provide more land to cater for the city's growth was "foremost of our minds".
Before the presentation ended, Donne told the committee that urgency was key but it appeared the state highway connection had the "ultimate control".
"This is really the handbrake. Until that's in place ... there's about three years of earthworks and construction before any of this is possible. We have to start now. Of course, the bank looks at us sideways when we say we are going to do earthworks on rural land," Donne said.
After the meeting, NZ Transport Agency Waka Kotahi regional manager system design Jessica Andrew told the Bay of Plenty Times it was helping support the council to help "progress these works to construction as quickly as possible" and this was expected within two to three years.
The short-term improvements include a new roundabout on SH29 near Redwood Lane and Belk Rd, connecting to the business estate.
Traffic lights will be installed at Tauriko village and at SH29 and Cambridge Rd intersection.
These would enable the first stages of housing within Tauriko West, continuation of Tauriko Business Estate and improve safety at the SH29/Belk Rd and SH29/Cambridge Rd intersections, Andrew said.