He could not confirm who had proposed to buy the site or why the sale had fallen through. That was commercially sensitive information to which councillors were not privy.
The council was following the investment route as one option.
"We're now going through a formal process of exploring options for the property and are seeking expressions of interest from developers with a strong track record of successfully completing similar projects."
Cr Shepherd said the council did not intend to take on development risk. That would be carried by the developer as part of any agreement.
"We have no intention of becoming developers, but would instead be investors and aim at getting commercial returns to offset rates. We are looking at innovative ways to do that. This is a prime site in a retail precinct with central access."
The 9967sq m site consists of 12 lots with a land value of $3.635 million and recent capital valuation of $5.625 million.
The site originally was bought as a commercial investment and had not been inherited from the former Northland Harbour Board, as had other council properties.
Former tenant Countdown, previously Woolworths, had been at the Kamo Rd-Kensington Ave corner from 1988 until June this year, when the supermarket moved to Regent.
Auckland-based property consultancy Greenstone Group has been appointed to help the council with the process. Proposals will be taken until December 19 and reviewed in early January, before negotiations with short-listed parties.
