Wylie Court on Fenton St. Photo / Kelly Makiha
The Government is planning to turn a large, vacant, Māori-owned motel on Fenton St into transitional housing but to do so it will need Rotorua Lakes Council approval.
A resource consent application has been lodged with the Rotorua Lakes Council on behalf of Kāinga Ora - Homes and Communities (the Crown housing arm) to use the existing Wylie Court Motor Lodge at 345 Fenton St as transitional housing.
The motor lodge has 37 units and has been vacant for several months. It is owned by Te Arawa Properties Ltd Partnership and the registered office for the company is Te Arawa Group Holdings Ltd.
Kāinga Ora's application to the council, dated July 29, said the site is in the commercial zone 4 of the Rotorua District Plan and required a resource consent as the intended scale of the transitional housing did not meet a defined activity provided for within the District Plan.
The proposal said there would be minor site work to make the property safer for families and wrap-around services would be offered onsite.
The existing restaurant would be closed to the public but facilities might still be used for residents and staff to cook meals.
Transitional housing is managed by the Government and is more stable housing for homeless people than emergency housing. It is designed to transition people into permanent residential housing.
Kainga Ora - Homes and Communities, the Crown agency that provides homes for those in need, told the Rotorua Daily Post last week it had not bought Wylie Court or nearby blocks of empty land, also owned by Te Arawa Properties Ltd partnership.
In a statement, Bay of Plenty regional director Darren Toy said: "I can let you know that Kāinga Ora hasn't bought the Wylie Court ... and the vacant land on Fenton St you refer to."
"As you know we have recently bought the Boulevard Motel and the land on the corner of Ranolf/Malfroy, and continue with urgency to explore a wide range of options around increasing housing supply in Rotorua.
"This includes purchase of land and existing properties, partnering with other landowners including iwi and hapu, redevelopment of our own existing properties, and leasing options."
The Rotorua Daily Post then asked Kāinga Ora yesterday, after learning a consent application had been made for transitional housing, if it was in negotiations relating to this property to either buy it or partner with the owners to offer housing options.
In a statement, Toy reiterated it had not bought the Wylie Court Motor Lodge.
"We will be happy to share future plans around other opportunities being explored when we are in a position to," he said.
Te Arawa Group Holdings Ltd has been approached for comment several times.
Rotorua Lakes Council was asked what stage the consent application was at, whether it would be publicly notified and how it would be granted given the District Plan didn't allow for permanent housing.
In a written statement, council deputy chief executive of district development Jean-Paul Gaston said the application had been lodged and was being processed.
He said whether it would be publicly notified and how it would be granted would be determined as part of the process.
Protest signs were briefly erected on a fence surrounding vacant land next to Wylie Court on Saturday morning opposing any sale of commercial and tourism land to the Government for housing.
There were three hand-painted signs that said: "Save our city", "Stop the sale of commercial/tourism land for Government housing" and "Stop the sale of commercial/tourism land".
It is not known who erected the signs.
There is a large block of vacant land next to Wylie Court, between Wylie and Sophia St, and there is another block of vacant land between Sophia and Gwendoline Sts. Property records show the vacant land blocks are also owned by Te Arawa Properties Ltd.
The Rotorua Daily Post approached a person at the office at Wylie Court for comment last week and was told it needed to seek comment from Te Arawa Group Holdings.
Meanwhile, Rotorua resident Teresa Walker contacted the Rotorua Daily Post last week concerned about the future of Wylie Court and the land.
She said she was worried about what was happening to Rotorua.
"The dynamics of this city are really changing. There are some beautiful homes in that area and elderly people live in those streets. I'm not against homeless people but Fenton St is the gateway to Rotorua."
"How do tourists come back here feeling safe. So many friends own businesses here. Do we stick it out or sell up and move?"
A Sophia St resident, who spoke on condition they were not identified, told the Rotorua Daily Post he hoped the land was not being used to house the homeless permanently.
The man, who owned his home, said it appeared to him some people took advantage.
"Even though they are needy, it doesn't help them much."
Last month, the Rotorua Daily Post reported the Government spent $8.1 million on the purchase of the 30-unit Boulevard Motel on Fenton St and will be used as transitional housing for 80 people.
The price paid was nearly double its capital value of $4.3m.
The motel would be managed by Wera Aotearoa Charitable Trust and provide residents with 24/7 wraparound support. Residents were expected to start moving in from late September.
One adult died at the scene and three people suffered minor to moderate injuries.