Zespri secures park site deal

FIELD OF THE FUTURE: Zespri's chief financial officer David Hazlehurst, on the park destined to be transformed into the company's new head office in a land swap deal. PHOTO/JOHN BORREN

Zespri's head office will stay in Mount Maunganui after a successful $10.1 million bid secured its current location.

The winning bid ended years of speculation that Zespri could end up building its new head office elsewhere in the Bay of Plenty.

Tauranga Mayor Stuart Crosby and Zespri's chief financial officer David Hazlehurst jointly announced the deal that opens the way for construction of an iconic, multi-storey building next to Zespri's existing modest council-owned premises on Maunganui Rd.

The net $9.7 million sale proceeds will be used to reduce the council's debt, which stands at $317.2 million.

Zespri beat off four other qualifying bidders to secure the 8100sq m site, which is part of a larger block that holds the Mount Library, Mount Plunket Preschool and a 3500sq m park.

Mr Hazlehurst said Zespri would take the option to build at the southern end of the block, meaning the park will shift to beside the preschool, on part of the site currently leased by Zespri.

Yesterday's announcement has triggered the design phase of the project that will conclude with the opening of Zespri's new head office in 2018. The commercial zoning meant the building could reach a height of 12 metres.

Mr Hazlehurst said Zespri was not rushing the project. "We want to do it right."

The new building would reflect Zespri's culture with its customers and could include a public information centre. "We have a longevity here that we want to build on," he said.

Zespri employed 190 staff in the former Mount Borough Council offices and adjoining temporary buildings. The new building will accommodate the long-term growth of the kiwifruit marketing company, which had turned the corner from the Psa disease that ravaged the industry.

"We want the industry and the community to be proud of the building. You will see it is a very Zespri-orientated building," he said.

Mr Hazlehurst said Zespri was aware of the neighbourhood's concerns about car parking. "We will look to address that in the design."

Mr Crosby said the highest bid was a few hundred thousand dollars above Zespri's bid but the council felt it was not a clean bid, with many tags including major time delays, with no guarantees at the end. Zespri's bid was unconditional and provided the best value to the council and community. "We are delighted Zespri put in such a strong bid."

One of the four qualifying bids was from an out-of-town company. One bidder did not put up a development proposal, while the two others proposed mixed residential and commercial developments.

Council chief executive Garry Poole said the sale was a good result for the community on a tight timeframe, starting from the council deciding to go to the market on June 23, followed by the land being marketed from September 2 to October 1.

"We moved at a commercial pace but we took the community with us," he said.

Zespri will front up with a 10 per cent deposit of $1.01 million, with the rest payable no later than March 31 next year.