A local developer has bought the 59-year-old Stan Heather Rugby Park after strong interest from Hamilton and Auckland investors.
A Hamilton Rugby Union meeting last night voted to accept an offer on the 7ha grounds.
The union endorsed a recommendation from the Hamilton Rugby Union Trust, which was set upto oversee the union's finances after it narrowed down the eight offers to the best one.
The struggling union put the park out for tender last month after it was unable to pay its increasing rates bill and kept having to go into its reserves to cover the shortfall.
Bayleys Waikato manager Stephen Shale said there had been strong interest in the site and confirmed last night that the park had been sold to a local developer for an undisclosed price.
The deadline for tenders closed in mid-June and the union said there was strong interest from 16 parties before eight confirmed tenders were received.
The Saxbys Rd land in Deanwell is zoned as a recreational reserve but is proposed to be rezoned as residential in the draft district plan, which would make it suitable for a retirement village or about 80 medium-sized residential sections.
The city council requires the new buyer to retain some of the land into a public reserve and to protect the gullies around the park.
Part of the condition of the sale was that the Hamilton Rugby Union could keep using the park for junior rugby until August next year while the union worked with the council to identify alternative council-owned parkland to hold junior rugby games.
Hamilton Rugby Union chairman Peter Way said it was disappointing the council hadn't been willing to negotiate with the union to buy the park because it had good drainage, changing rooms and off-street parking, which many of the other parks lacked.
Mr Way said the union still had no new place for its 10 active clubs to play junior rugby long-term despite his warning the council since 2001 it would have to sell the park at some point.
The settlement date is early next year, when the proceeds would be transferred to the trust to administer. Nikki Preston
