A former Whangarei supermarket that has been vacant and cyclone-fenced for four years could become a bustling suburban centre.
Northland District Council (NRC), the owner of the high profile building and former carpark on the corner of Kensington and Kamo Rds, is well along the way to signing off a deal with proposed partner Argyle Estates Ltd, to develop a centre likely to house a medical centre, offices and retail spaces.
The council's decision to retain ownership of the building came after tender
process in 2016.
While the process resulted in a sale and purchase agreement with Argyle's related company Aheto Holdings Ltd, the process deal was subsequently cancelled to allow council to retain ownership of the property.
The empty former supermarket site has also been subject to a range of suggestions for conversion into a community facility.
NRC chairman Bill Shepherd said the council had looked at various options over the years.
''Now we have something on the table that we believe can restore vitality to this area,'' he said. "People have let us know they would value commercial and retail activity at this location and we feel sure they will welcome a fresh, new look that offers change and brings new energy to the community."
Shepherd said the building will remain in full council ownership as a tenanted investment property.
"It will become an important part of our property portfolio which significantly subsidises rates and council activities."
An independent valuation report puts the final value of the project between $13 million and $16.5 million, depending on the final tenancy mix.