Landmark block on market

A landmark undeveloped block of land in Tauranga's downtown is officially on the market after approaches from developers and potential tenants.

The city council yesterday called on developers to put forward proposals for its 4400sq m property on Devonport Rd - one of the largest undeveloped sites in the city centre.

Most of the land consisted of carparks below the IRD building in Elizabeth St and off The Strand extension.

The block of land in various titles had a combined capital valuation of $7.54 million in 2008.

The previous proposal, a $100 million plus development plan for a mixed use retail, office and apartment accommodation, fell through when the developer was unable to secure finance because of the global financial crisis.

Council property manager Anthony Averill said the site consisted of two commercial properties fronting Devonport Rd, one of which was untenanted and could be demolished because it only had an earthquake rating of 19 per cent. The other building had a short-term tenant.

Mr Averill said the rest of the site was used for parking, with the upper carpark behind the IRD Building having 71 spaces and the lower carpark off The Strand extension with 21 spaces.

He said the development of the site incorporating public parking and a large mixed-use component had the potential to help build a vibrant city centre. Because the land was still needed for carparks, the council did not need to offer the land back to its original owners.

If a development was unable to offer the equivalent number of public carparks, then a portion of the proceeds of the sale could be set aside to make up for the shortfall elsewhere in the city.

"The council is looking for a development that reflects the identity, character and context of the site," he said.

A retail frontage on Devonport Rd would be a condition of development. Mr Averill said the council would seek to realise the market value of the land, although the requirement to provide public carparking would reduce potential returns.

He said the council was seeking a developer with the capacity to clearly demonstrate that the development would proceed. The primary development mix would be retail and quality office space, but visitor accommodation or apartments would also be considered.