A council recommendation to contribute $630,000 towards a roundabout and underpass for a Cromwell subdivision was rejected by Central Otago District councillors last Wednesday.
The request from the developers behind the Wooing Tree subdivision in Wanaka came after an application was lodged under the fast-track process for the project in May.
A report prepared by Central Otago District Council environmental engineering manager Quentin Pennial was presented to councillors at the final meeting of the council of the year.
It said the project lodged with the Environmental Protection Authority proposed the subdivision of a 25ha block in Cromwell to create a medium density residential development and a small commercial precinct.
Consent was granted in September for 360 residential lots, a hospitality centre compromising of a 350sqm cellar door for the Wooing Tree Vineyard (and adjacent outdoor seating area of 150sqm) and 500sqm of retail.
The consent also included provision for a child-care facility and a super lot for visitor’s accommodation.
However, Wooing Tree Estate was also required to deliver the roundabout and pedestrian underpass before it could deliver future stages of the development, the report said.
The total cost of that infrastructure sat at $4,393,000.
Broken down that meant the roundabout carried a price tag of $3,285,000 and the underpass was $1,108,000.
The report recommended the CODC waiver up to $630,000 of roading development for the provision of an underpass and roundabout because of the wider benefit it would provide the Cromwell community.
Speaking in the public forum via video link from Tauranga, Veros Property director Duarne Lankshear told councillors the original plan was for a 210-lot subdivision that was consented by the council.
The developers then reapplied to extend this under the fast-track scheme which rendered previous agreements null and void and allowed for the increase in residential lot numbers.
Most councillors were against providing funding.
Cr Neil Gillespie said the increase to 360 sections for sale should place the developers in a position to fund the roundabout and underpass.
Developer contributions from council were to fund council-provided infrastructure.
He said there was no sound reason for the council to offset developer’s costs.
‘‘If their budgets don’t line up that’s an issue they have to face, it is not a problem for this council.’’
Cr Nigel McKinlay agreed and said the increased revenue for the additional sections and the requirement to install the roundabout and underpass should be have been budgeted for and covered by the developer.
