A land development has been tabled for the north end of Paeroa. The landowners have trade units, motels, medical services, retail and service stations in mind.
A land development has been tabled for the north end of Paeroa. The landowners have trade units, motels, medical services, retail and service stations in mind.
A feasibility study has revealed several challenges for a significant potential development in Paeroa.
The land holdings at the northern entrance to the town, fronting State Highway 2 on both sides and intersected by Opukeko Rd, include seven parcels comprise 17. 8 hectares.
The landowners approached target="_blank">Hauraki District Council and expressed a desire for the council to develop the area, to include trade units, motels, medical services, convenience retail and services stations.
The council engaged consultants Veros to undertake a preliminary feasibility study on the mixed “gateway” concept.
The study revealed the area presented several challenges as a significant portion of the site was susceptible to surface flooding, necessitating landform remodelling in any redevelopment and mitigation measures.
The council’s planning committee is scheduled to meet on Monday to discuss the proposal.
A flood hazard map of the north end of Paeroa.
According to the study, two properties were verified Hazardous Activities and Industries List (HAIL) sites and could require remediation depending on the proposed land use.
The ground conditions were anticipated to require ground improvement, and while the land was on the periphery of the Paeroa urban area, comprehensive development of the area would require infrastructure investment and upgrades to support a high-quality urban environment.
In preparing the feasibility study, Veros met with the relevant landowners, Waikato Regional Council staff, and Hauraki District Council engineers and canvassed potential retail and industrial market participants.
Following the study, three development options have been put on the table.
The first option would see 28 sections of about 4000 to 8000sqm developed on both sides of the highway with a roundabout providing access.
The sales values were set at $200 per sqm. The section values were designed to support mixed-use and the roading layout was as per the existing Structure Plan.
The second option would see 31 sections of about 4000 to 8000sqm developed on both sides of the highway with a roundabout providing access.
The sales values were set at $200 per sqm. The section values were designed to support mixed-use and the roading layout was as per the existing Structure Plan.
The third option would see 16 sections of about 4000 to 8000sqm developed on the east side of SH2 only with a roundabout providing access to Opukeko Rd.
The sales values were set at $200 per sqm. The section values were designed to support mixed-use and the roading layout was optimised to allow more sections and reduced roading costs, as opposed to using the roading layout under the Structure Plan.
Two of the options would require external funding to support the development and the third option showed a development margin lower than what would normally be acceptable within the current market.
This was due to the saleable value of the land at the end of the project, the costs required to construct the infrastructure required, the low demand for industrial land and the lack of interest from large retail groups in having or extending their presence in the town.
In preparing the feasibility study Veros noted that if the Paeroa Gateway was looked at with a 20-to-50-year lens, there could be a different outcome, given the difficult economic conditions currently being experienced.
Conversely, climate change and environmental considerations could also increase over the timeframe.
