Although some of the villas were modern, the care facilities were tired, Mr Gasparich said.
"We are making houses available for the elderly in a form they can enjoy and it gives them access to care if they need it."
The report from council senior environmental planner Amy Spurdle has recommended granting the application, subject to conditions. She detailed how Oceania had applied to construct six multi-level buildings ranging from two to five stories in height, including an administration building and 60-bed rest home.
Oceania's application breached council planning rules because buildings exceeded maximum heights by up to 4m, exceeded density provisions for rest homes, did not comply with minimum parking requirements and exceeded the permitted earthworks.
The application was opposed by 10 neighbours. They highlighted the rule breaches and were worried about issues including loss of privacy, the duration of construction, health concerns from dust and noise, potential property damage during construction, subsidence, shadowing, traffic noise, loss of views and property values.
The proposed development's 216 carparks was a planning shortfall of 136 carparks. However, a traffic consultant said that the age of the occupants meant that between 130 to 145 carparks would be enough because a significant portion of the residents would not drive.
A traffic safety analyst concluded that the redevelopment would not result in "unacceptable traffic delays" or significant changes on Waihi Rd.
The landscape assessment concluded that the effects of a permitted development would be greater than Oceania Healthcare's proposal. Ms Spurdle agreed, saying that buildings could be constructed closer to the boundary with Tekoah Place which would have greater bulk, dominance, shading and privacy effects.
She said the apartment building closest to Tekoah Place was 17m from the boundary and, although it would be three storeys in places, the setback and change in ground levels would mitigate privacy effects.
Building management plans would ensure that construction effects were "acceptable".
Melrose redevelopment
Total residents: 311 (up 141)
Total retirement units: 242 (up 182)
Care beds: 60 (down 50)
Minimum age of residents: 75