The new road will join up with the recently opened Peka Peka to Ōtaki expressway. Photo / Mark Coote
The new road will join up with the recently opened Peka Peka to Ōtaki expressway. Photo / Mark Coote
Almost $80 million has been spent acquiring properties to make way for one of the country’s most expensive motorways.
The Ōtaki to north of Levin road, including a shared walking and cycling path, is estimated to cost $1.5 billion and will connect with the recently opened Peka Peka to Ōtakiexpressway.
The Crown needs to buy 175 properties in total for the new 24 kilometre road. Of those, 64 have already been bought at a cost of $78.9 million, figures obtained by the Herald under the Official Information Act reveal.
It’s one of the largest property acquisitions Waka Kotahi NZ Transport Agency has undertaken. Lifestyle, residential and farm properties are all affected.
Waka Kotahi would not say how much the total property acquisition was expected to cost so it could “carry on, without prejudice or disadvantage, negotiations on behalf of the Crown”.
But Waka Kotahi Ōtaki to north of Levin project director Lonnie Dalzell said the cost of property was an “important aspect” of the overall budget.
The properties have to be bought at current market value as required by the Public Works Act, he said.
“Waka Kotahi and its accredited agents continue to work with those 175 property owners to ensure that the process is completed in a timely manner and compensation is provided at a fair market value.
“The project has been investigated for a number of years and as the property values increase so those the cost of acquiring property. Since 2021 the property market has fluctuated and we are confident we have sufficient funding to acquire the required properties.”
Land Compensation Consultants Ltd has completed more than 24 compensation claims for property owners affected by the Ōtaki to north of Levin road.
Senior property consultant Jas Madhar said it could be stressful for owners.
“With Ōtaki to Levin, I think it’s much more pronounced because there have been so many different options which have been tabled over the years and it’s been stop-start and that’s taken a toll on land owners.
“Things never happen quickly enough for them. A lot of them, after they get over the shock, they want to be able to move on and move on quickly but not at any price and that’s when the situation gets complicated.”
Horowhenua District mayor Bernie Wanden says property owners have accepted the greater good ahead of their own interests.
Horowhenua mayor Bernie Wanden said the road was critical for improving safety and allowing for growth in the lower North Island.
“Those [owners] who have been in the pathway have been pretty fantastic in terms of the way they have accepted the greater good and put that ahead of their own interests.”
Asked whether he was confident the road was going ahead as planned after years of waiting, Wanden said: “The politician in me says yes, the local in me is a little concerned.”
The road is part of the Government’s NZ Upgrade programme, which has been subject to cost blowouts because of Covid-19 and a “red hot” construction industry.
In 2021 it was decided six projects in the programme would not go ahead as planned, including South Auckland’s Mill Rd project.
Ōtaki to north of Levin ballooned from $817 million to $1.5 billion but was saved from the chopping block.
A spokesperson for Transport Minister Michael Wood’s office said the NZ Upgrade programme has allocated money for the road’s detailed business base, consenting and resourcing, and land acquisition.
Money to build the road is yet to be allocated.
“Large construction projects such as this are funded through a series of gateways, at the completion of each stage funding is allocated for the next,” the spokesperson said.
“The Government continues to work with Waka Kotahi to support the construction of Ōtaki to north of Levin highway.”
Despite his concerns, Wanden was happy that progress on the road was still being made.
“There are funds being put aside for the purchase of those properties, and for the consenting, notice of requirement. So, the project is not stalling.”
Construction on the new highway is scheduled to begin in 2025.
