Two thousand homes planned for Tauranga

SOLD: Bob Clarkson near the Tauriko land he sold to developers working on a massive housing project.

Developers plan to build $1 billion worth of homes on the southwestern fringe of Tauranga as part of the latest bid to develop land there.

Classic Builders last week bought 136 hectares of Tauriko land from fellow property developer Bob Clarkson for the building of 2000 homes, the first of which they expect to hit the market within five years.

With its access to roads and shops, Classic Builders co-owner Peter Cooney said Tauriko was a logical area for the next stage of Tauranga's expansion.

Mr Cooney said a wide range of housing was earmarked for the area, including some high-density options.

When pressed about cost of ownership, he said a reasonable number of homes would be aimed at satisfying demand around the $500,000 to $550,000 price point.

"It's going to be all about housing and all about affordability," he said. "That's what's driving us, and that's why we bought the land."

There was still a lot of work to be done with local authorities before earthworks could begin, he said. However, he expected the first homes to be on the market in four-and-a-half to five years.

Mr Cooney agreed that 2000 homes selling at a minimum of $500,000 each would push the development past the $1 billion mark.

The sale was the latest twist in an ongoing saga regarding the land.

It came three months after Tauranga City Council endorsed recommendations in a blueprint called SmartGrowth which would allow land to be re-zoned for housing. This was expected to include the Tauriko land, ending a 10-year battle for Mr Clarkson.

He bought the land in 2006, spending much of the next decade wrangling with councils over zoning.

Mr Clarkson was still bitter about this, using the phrases "heads in the sand" and "stupid" to describe local politicians he held responsible for application and planning costs which he said ran to $1.5m.

"I bought the land with a dream to solve the current problem with housing, which I had foreseen," Mr Clarkson said. "The council said no, which was the stupidest decision in the world."

Mr Clarkson said in his view former Mayor Stuart Crosby was the man who steered Tauranga City Council towards "stuffing it for the people of Tauranga".

The perspective was different for Mr Crosby, who said the council had to respect a city growth management strategy that "stopped people from buying farms all over the place" and trying to get them re-zoned to make money.

Mr Crosby said that Mr Clarkson had bought rural land "of his own free will" and tried to push the council into re-zoning it for housing.

"He took a punt and lost."

Mr Crosby said that the land had long been destined to be zoned as residential or commercial, and only the timing was in dispute.

None of the developers involved with the deal would reveal the sale price.

Other areas likely to be developed as part of the SmartGrowth re-zoning recommendations are Keenan Rd in rural Pyes Pa and possibly land around nearby Merrick Rd and Joyce Rd.

Big Plans
$1 billion development
136 hectares at Tauriko
2000 homes
Selling for $500,000-plus
First homes on market mid-2021