Tauranga businessman Bob Clarkson is looking at a large chunk of land at Tauriko Business Estate to construct more of his big industrial buildings.
He told Tauranga City Council members this week he was fast running out of premium land to erect his heavy-loading, high-stud buildings, and he was having to turn away prospective major tenants.
Mr Clarkson has been talking to the business estate developer, Bryce Donne, for six months about a deal to buy 15-20ha in stage two, spreading along Kopurererua Valley to Gargan Rd.
"That would keep me happy for the next three to four years," said Mr Clarkson, a former Tauranga MP. "I don't want to be fighting bureaucrats. I just want to build buildings in Tauranga. I love the place."
It's understood a proposed deal could include swapping some of Mr Clarkson's rural land across the main road at Tauriko and sweeping down to the Wairoa River.
Mr Donne, director of Element IMF New Zealand, the company managing the 195-hectare Tauriko Business Estate, told the Bay of Plenty Times he could deliver land titles in stage two within nine months.
The earthworks, including moving some hills around, are virtually completed in the 23-hectare second stage. "All that's needed is to extend some pipes and roading," said Mr Donne. "I would like to see Bob whacking up buildings (after Christmas) around the estate.
"If he wants to participate in stage two, then I'm happy to work with him in any way," Mr Donne said. "There's plenty of opportunity for lots of heavy buildings here."
Mr Clarkson said Christmas sounded a little far away but, "I can live with that if he gets the wheels turning." Mr Donne said Mr Clarkson had the skills to deliver a product on the land. "He's kind of unique in Tauranga. He has the energy and he's focused on industrial buildings. Activity generates other activity, and I view his approach positively."
Mr Clarkson told the Tauranga City Council that hardly any suitable developed industrial land was available.
Further industrial land at Wairakei in Papamoa East, Rangiuru near Te Puke and Tauriko Business Estate would come on stream over the next few years.
Mr Clarkson said the remaining developed land in stage one of the Tauriko estate was not suitable for his big industrial buildings because of the ground conditions. Instead, that land was earmarked for light industry.
A sale and purchase deal for land in stage two - it will easily take factories and industrial buildings - would spur development in the massive Tauriko estate.
Mr Donne said he was always going to roll out further sections in the estate when the market, and demand, dictated. Building had slowed in the 55-hectare stage one because of the recession, even though Element IMF sold 94 of the 110 sections, ranging in size from 665sq m to 1.4ha.
Mr Clarkson needs bigger blocks. He wants to construct buildings 4000-6000sq m in size, and even up to 16,000sq m.
He told the councillors this week he couldn't drive home an agreement to build a 40,000sq m warehouse because he couldn't offer a site. Instead the company was looking at land near Hamilton Airport.
Mr Clarkson said a block up to 20ha would be one of his bigger holdings. "I've done it before and I can do it again. It might be a bit slow to start with but I'm looking forward to an upturn in the market."
He said there was still a chance of holding on to two other potential tenants who wanted new buildings of 16,000sq m.
Mr Clarkson this week was approached by a Hamilton developer to build on his land next to the main road past Te Rapa.
"He has 105ha, all the consents and earthworks are done, there's a railway siding, and titles are due within two months. I don't want to move to Hamilton. I want to stay in Tauranga, but the council here has to make more premium industrial land available," he said.
"I see a clause in the Regional Policy Statement that says if there isn't available industrial land within the urban limits, then you are allowed to go out of it."
Mr Clarkson is lodging an Environment Court appeal against a decision by the Tauranga council's hearings committee to reject a submission on rezoning 20ha of his land at Tauriko to industrial.
He said the appeal was based on the fact the committee didn't have the full information on the implications of not having enough industrial land suitable for big buildings.
Based on his present schedule, Mr Clarkson and his building team had enough work to take them through to Christmas - and then he would review his position.
He is finishing a 1100sq m building in Jean Batten Drive, two more totalling 2650sq m at the end of Aerodrome Rd near the airport runway, and will construct a further 1100sq m building at the Tauriko estate, in stage one.
He is also eyeing four other sections at the estate for another building, taking him through to the end of the year.
During the past 17 years Mr Clarkson has developed about 50ha of industrial land in Maleme St, MacDonald St, Aviation Ave and on airport-leased land around Jean Batten Drive, including a 17,000sq m grain store.
Space for heavy industry 'tight' in Tauranga
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