Coast Papamoa had left a 3m gap in Grenada St, to prevent it being used until it had lodged the subdivision consent plan for Coast's retail development with the council. Coast would then have sealed the gap and fully vested the road in the ownership of the council next year.
But in an unexpected turn of events, the council mistakenly constructed the missing 3m of road at no cost to the developer.
Mr Short said roads were normally vested once subdivision lots had been created and impact fees paid.
However, he was happy with yesterday's breakthrough negotiations. "We agreed the terms on which it was going to be opened. It makes sense for the road to go through now it is connected ... it was in everyone's best interests."
Mr Short said he had no issue with vesting the road. "The council did me a favour by joining it up at their cost."
He said it was always going to happen once the retail subdivision plan had been done. Yesterday's talks would allow him to bring the vesting forward.
Mr Short said a council misunderstanding saw Grenada St linked up without their approval. He estimated that the 3m of road would have cost the council about $6000.
Tauranga City Council transportation projects manager Robert Holford said the joining up of Grenada St, about two months ago, had been a mistake that followed a site meeting with consultants.
"We acknowledge we erred by going on to his property."
Yesterday's agreement opens up a second link with Sandhurst Drive, so that Papamoa residents do not have to use Papamoa Beach Rd to get to town. Gloucester Rd also crosses Coast Papamoa to link into Sandhurst Drive.
Council transportation manager Martin Parkes did not have enough information yesterday to comment on the cost to seal the 3m gap. "All we can say is that the cost was absorbed into the cost of the larger sealing project that was done at the same time."
Meanwhile, business was booming for Coast.
Thirteen sections on the northern side of the development all sold over one weekend in May, with a further 29 lots to be offered soon.
Mr Short said prices for the house and section packages ranged from $600,000 to $1.4 million. Four of the most recent visitors to the sales pavilion, who were ready to buy, were all from Auckland.
Sandhurst Drive Extension to State Highway 2
* When first proposed?
Forty years ago by the Mount Maunganui Borough Council.
* Restrictions on today's opening?
Only the SH2 entry and exit ramps, not the Truman Rd link.
* Cost to council to extend Sandhurst Drive to SH2?
$2.3 million including stormwater pipeline.