The site owner and developer Martin Schilt. Photo / File
The site owner and developer Martin Schilt. Photo / File
It has been almost 18 months since a Special Housing Area was publicly proposed at 31 Ngongotaha Rd but that bid was rejected by central Government this week.
The Ministry of Housing and Urban Development is yet to list the detailed reasons for its decision, but under the Official InformationAct, the Rotorua Daily Post has requested a copy of the letter Minister Megan Woods sent to the Rotorua Lakes Council this week, outlining her decision.
Minister of Housing and Urban Development, Megan Woods. Photo / File
The ministry's deputy chief executive of place-based policy and programmes, Brad Ward, said the proposal's potential benefits were considered, as well as last year's April floods.
"This is a complex proposal and it is difficult to quantify the risk of flooding to the proposed Special Housing Area site at this stage. As such, the final ministerial decision is that it is best progressed through a resource management process."
Woods said she could not elaborate on Ward's comment at this stage.
The site owner and developer, Martin Schilt, told the Rotorua Daily Post it was "a cruel outcome for Rotorua".
"Considering we have got people living in garages and multiple families in the same house ... The mortgages on these homes would have been cheaper than most rental payments in Rotorua."
Schilt said that after launching the housing area proposal, he had many calls from large employers in the district.
"They were saying that they could actually increase the size of their businesses if they could get housing for employees in Rotorua - good housing.
"Some of these businesses have 30 to 40 per cent of their employees living in either Pūtāruru or Tokoroa, but they just can't find adequate housing for them in Rotorua."
He said the only other way to get the current development proposal approved was through a plan scheme change.
"That is just a minefield. That would take years, it would take huge amounts of money ... so we aren't going down that track. It's just not worth it for us."
The site owner and developer Martin Schilt. Photo / File
He said he was considering other options.
"There will be something there but it won't be entry-level houses, which is a huge slap in the face for Rotorua I think. I feel sad for the people of Rotorua ... who have lost out here. We had the opportunity to do something really good."
Wally Haumaha, the chairman of Waitetī marae. Photo / File
Wally Haumaha, the chairman of Waitetī marae, said: "The Ngāti Ngāraranui Hapū Trust as a whole is in a neutral position until we have a look at the minister's decision. There are a whole lot of things to consider."
However, fellow trustee Guy Ngatai said the minister's decision was "practical and wise".
Guy Ngatai, from the Ngāti Ngāraranui Hapū Trust. Photo / File
Ngāti Tura Ngāti Te Ngākau Hapū Trust spokesman Geoff Rice said the trust was "conceptually in support of it [the housing area], particularly for affordable homes".
"But it has got to be safe and sustainable," he added.
"I am disappointed Martin wasn't able to get it past [step] A, I would have liked to see it at least get to [step] B, to be given a chance ... I hope he gives it another try."
MP for Rotorua, Todd McClay. Photo / File
Todd McClay, the MP for Rotorua, said he was "surprised and deeply disappointed" by the decision.
Rotorua-based New Zealand First deputy leader Fletcher Tabuteau told the Rotorua Daily Post it was a missed opportunity.
"[The decision] means that Rotorua will continue to have a housing shortage. The only way to deal with a shortage of homes and rental properties is to allow new houses to be built," he said.
"On the face of it, this looks like a poor decision. I am a supporter of the project, and advocated as such in Wellington.
"This must have been a difficult decision for the ministry and if there is opportunity for more housing developments that are of a good standard to be built in Rotorua then I will be a big supporter. I am disappointed Martin wasn't able to get this development through."
