Work has begun on a $20 million project for a Mitre 10 Mega store in Whangarei.
The $20 million price tag relates to land purchase, construction of an 8000sq m building, set-up costs and stock of the planned store on the former McBreen Jenkins/Transfield site on the corner of Porowini Ave and Kaka St.
The Mitre 10 Mega is a first for Northland and will replace Mitre 10's existing Whangarei outlet, the Home & Trade store at the Regent in the central city.
The megastore will employ 80 - made up of 40 new jobs and 40 existing staff in the Home & Trade store.
The project will see Mitre 10 with the fourth largest "big box" in the city behind Bunnings, The Warehouse and United Carriers, 12,500sq m, 13,000sq m and 13,500sq m respectively.
Demolition of old buildings on the site began a few days ago.
The company identified the Porowini Ave site as ideal for a Mitre 10 Mega when the Whangarei District Council decided to extend the road.
The extension, completed last July, changed Porowini Ave from a dead-end to an arterial route linking Tarewa Rd and Okara Drive, exiting near the new stadium and the proposed second harbour crossing.
Mitre 10 had planned to complete the project to coincide with the opening of the extension but the project was delayed by land purchase issues.
The company was originally planning to lease the land from the two owners but in the end , purchased it outright.
Mitre 10 New Zealand Ltd occasionally sells land and buildings on a lease-back arrangement to release funds for new stores - the store at the Regent has been a tenant of its building since 2006 - but national property manager Tony Bullock said the company could well retain the Porowini Ave site.
"We haven't decided," he said.
He said the company was currently pricing the cost of different facets of the megastore. Tenders were being called for the main building contract, closing early next month.
Darryl Tilly, a member of the Mitre 10 New Zealand board and owner/operator of the Whangarei Home & Trade store with his wife June, said he was delighted that a Whangarei building firm was submitting a contract and that a number of local trades and suppliers were involved in the process.
"I've pushed strongly for local builders and suppliers to be given the chance to do this," he said.