An aerial view of the Napier Hill site purchased by the council for a new drinking water supply reservoir. Photo / Supplied
Napier City Council has bought 3ha on Napier Hill's old hospital site for $11.35 million to be used for a new drinking water supply reservoir.
The land was bought from developer Templeton Group and had previously been marketed as sections.
The Enfield Rd reservoir is nearing the end of its life and needs replacing, the council said.
"This project provides an opportunity for co-design with local mana whenua and to build the infrastructure in such a way so the site is accessible to the community," Napier mayor Kirsten Wise said.
"It is an ideal spot for us to tell the story of Mataruahou [Napier Hill], given it is a significant and historic site."
A council spokesperson said it cost $11.35m to purchase.
Templeton Group chief executive Nigel McKenna said the council explained "the criticality of the asset from an infrastructure perspective".
"Given that this site has been a long-held Government asset which provided health care support to the community for many years, a return to council ownership for the site to maintain its role as an infrastructure asset that supports its community seemed appropriate.
"While we've made a considerable investment in development plans and are disappointed we cannot proceed with the development, we are pleased we were able to achieve a result that benefits Napier City Council, Mana Ahuriri and the community," he said.
As adjacent land is part of the Deed of Settlement between the Crown and Ahuriri Hapū, represented through Mana Ahuriri, and "there are opportunities for Mana Ahuriri and NCC to work together to achieve complementary benefits across both sites", the council said.
"The purchase by NCC signals the beginning of collaboration with Mana Ahuriri for the overall development of that area of the hospital site," says Piri Prentice of Mana Ahuriri.
Planning and construction of the reservoir not yet started. It is expected to take several years to complete, with 2024 the earliest possible time of completion.
The council said Ngā hapū and Napier Hill residents are "key stakeholders" and will be part of consultation.
Mana whenua engagement will be a key part of the design development.