Rotorua subcontractors could be the big winners from a $19.5 million building boom - with two multimillion-dollar projects looking for local companies to help with the developments.

The final three months of last year saw a big jump in the value of building consents issued by the Rotorua Lakes Council - up on the $6.9 million value at the same time the previous year.

While the number of new commercial consents dropped compared with the same time in previous years, the value was much higher - mainly because of consents being issued for Whare Aroha Care's new state-of-the-art dementia village in Ngongotaha, worth $8.8 million, and the $8.4 million consent issued for Lynmore Junction's retail and entertainment centre.

With both developers looking at using local subcontractors where possible, the spinoffs for Rotorua businesses could be substantial.


Whare Aroha Care project manager Deanna Smit said initial work on the Taui St site had started with construction expected to begin next month.

Bay of Plenty-based company Canam Construction was appointed as head contractor.

Ms Smit said that where possible, they would be using local sub-contractors.

"There's the electricians, the plumbers, just such a huge range of subbies that are going to be used on a site like this.

"We can certainly see the benefits for Rotorua and the potential for Ngongotaha. Just the increase in traffic through Ngongotaha and the flow-on effects that might have will be big," said Ms Smit.

Canam Construction's Mark Miedema said he expected a "considerable crew" to be working on the project once it was in full swing.

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Mr Miedema said they were using a local firm for the earthworks and going forward they would be trying to get as much done locally as possible.

Lynmore Junction, which features Motion Entertainment, is being developed by Holmes Group. Managing director Ryan Holmes said the construction phase was set to generate local employment opportunities and once open, the operation of Motion Entertainment would create a number of new jobs.

"The private investment in the development is expected to have significant public spin-off with both short-term and long-term economic benefits for the city, as well as contributing socially to the community as an entertainment hub."

He said Bay of Plenty-based construction company iLine Construction had been appointed as head contractor for the build and more than 30 sub-contracted companies would be commissioned on the project.

By the numbers:

* 17 new commercial building consents issued between October and December 2015.

* The top two major projects in the quarter were Whare Aroha Care's new facility and Lynmore Junction.

* There were 24 new residential building consents in the same period.