A lavish subdivision, including two eight-storey apartment blocks, would be built on the site of Napier's derelict former hospital under a series of plans put forward by the hillside property's development company owner.

Todd Property Group's proposal to redevelop the $20 million-plus site, with its sweeping land and water views, is currently with Napier City Council for consultation.

As well as tearing down the long-abandoned hospital tower block and replacing it with twin high-rise apartment buildings, Todd Property is proposing building six detached homes and 21 terraced houses on the 5ha site. One of the apartment blocks would house a cafe open to the public.

According to details filed as part of its application for resource consent, each of the two 31.5m-tall high-rise blocks would have 18 apartments. While one would house a ground-floor public cafe, the other would have a gym for apartment residents.


The subdivision's six stand-alone buildings would be on individual titles and designed "to complement the character of the existing older bungalows and villas on Napier Hill".

The council is receiving submissions on the proposal until August 8.

In its application, Todd Property says positive effects of the development include providing additional community facilities in the form of a new public walkway, to be formed as a heritage trail, as well as the cafe.

Napier Hospital closed in 1997 after the Government decided to redevelop health services in Hastings as the Hawke's Bay Regional Hospital.

In 2003 the 5ha site was transferred to the Crown Health Financing Agency to manage and sell.

A $20 million sale fell through in 2006 when developer Eyal Aharoni claimed he had been misled about the land's value.

The sale was plagued with problems, as 12 Napier citizens spent more than $10,000 in private funds to challenge the sale in court.

Todd Property Group bought the site - which has spectacular panoramic views, including overlooking the Ahuriri Estuary and the Napier Inner Harbour - in 2011 for an undisclosed sum with almost $9 million of the proceeds going to the DHB and more than $13 million to the Crown Health Financing Agency.


Todd Property Group specialises in planned communities and has residential and lifestyle developments in Auckland and Northland.

The Auckland-based company is part of Wellington-based Todd Corporation, owned and controlled by the wealthy Todd family.