Palmerston North City Council seeks land status change to allow housing development

The council submission says development of Huia St reserve will help deal with "an acute housing supply issue". Photo / Judith Lacy

Palmerston North officials are asking Parliament to help turn an overgrown former city bowling green into housing.

The council is sending a submission to the Environment Select Committee about a bill that would change the status of a 1.5-hectare section.

The old bowling club land, off prominent city entrance Fitzherbert Ave, can only be used as a reserve and it requires an act of Parliament to change this.

Although the city has a housing shortage, there is some opposition to building on the land, known as the Huia St reserve, which has been empty for more than 15 years.

The council's submission on the Palmerston North Reserves Empowering Amendment Bill asks for the law change to allow for the land's sale or development as housing.

The council is yet to decide if development would add to its housing portfolio, or if it would be sold to private developers.

The council submission said development would help deal with "an acute housing supply issue".

"[It] presents an opportunity for the council to show leadership by supporting medium-density housing development.

"This option may also provide the opportunity for a potential mixed-use housing development on the site."

At a council committee meeting last week, a proposal by councillor Brent Barrett to retain the land in public ownership was defeated.

"In my view it is the most certain way of actually getting a housing outcome," he said of his proposal.

The Huia St reserve is one of two former city bowling clubs whose future is up for the debate.

The other one, a 7.5ha section on inner-city Summerhays St, is not subject to parliamentary legislation, but is facing the same housing versus recreation debate.

Palmerston North house prices have climbed steeply in recent years and the median price is $750,000. Rents are also growing, as is the emergency housing waiting list.

The bill passed its first reading in December. Select committee submissions close on February 18.

A previous attempt by the council to change the Huia St reserve land's status 15 years ago foundered.

• Jimmy Ellingham is RNZ's Manawatū reporter.