Affordable housing proposal could create new Kerikeri link road

The affordable housing development is proposed on a 3.3ha property between Hall Rd and Mill Lane in Kerikeri. Photo / Peter de Graaf

An affordable housing development in Kerikeri with 56 two- and three-bedroom homes could also create a new bypass road around the town centre.

Council-owned company Far North Holdings, which is managing the project, has lodged a resource consent application for the Hall Rd site on behalf of land owner Sir Owen Glenn.

The 3.3ha site is currently pasture bordered by Hall Rd, Ranui Ave/Charlotte Kemp Drive, the Mill Lane industrial area, and a major new retirement village being developed by Arvida.

If the plan is approved most lots will measure about 300sq m — less than a third of the traditional quarter-acre section — with larger lots of up to 720sq m along the property boundaries.

The mostly two-storey homes will range from 109sq m (two bedrooms) to 174sq m (three bedrooms with internal garage).

However, what makes the proposal of wider interest to Kerikeri residents is that it would create two new link roads.

Mill Lane would be extended from the VTNZ testing station to connect with Hall Rd, and Ranui Ave would link up with the new Mill Lane extension.

That would create two potential bypass routes allowing traffic from the fast-growing Inlet Rd area to reach State Highway 10 without having to drive through the town centre.

The development would create two new link roads and a potential Kerikeri town centre bypass. Image / NZME

A Mill Lane-Hall Rd bypass has been talked about for decades but a lack of funding means it has never got off the council drawing board.

The new links could reduce congestion in central Kerikeri but they may not be welcomed by residents of Hall Rd and Ranui Ave.

Ranui Ave is a residential street while Hall Rd is a narrow, rural-standard road already facing a sharp increase in traffic due to retirement village construction. A footpath, funded by Arvida, was built just last year.

Property title documents show the site is owned by Go Bloodstock New Zealand Ltd, which is owned by Sir Owen Glenn.

The sole director of Go Bloodstock is businessman and property developer Bill Birnie, who is also a director of Far North Holdings — the same council-owned company which is managing the project.

Far North Holdings chief executive Andy Nock said the company had offered its expertise and project management services for a commercial fee, in the same way it had managed Provincial Growth Fund projects around the district for trusts and community groups.

He was confident the conflict of interest created by Birnie's roles was properly managed.

"Any time there is a conflict of interest, if directors are either acting for an owner or are the representative of an owner, as in this case Bill is, then that is declared — and all discussions and decisions the board makes are conducted in their absence."

Nock said it was not a social housing development but was aimed at young professionals and families who couldn't get a foot on the property ladder.

Many people weren't catered for in the current Kerikeri housing market, which was dominated by large homes on large sections with prices to match.

Potential buyers could include professionals working at Arvida's Te Puna Waiora retirement village who might otherwise be priced out of Kerikeri.

The development could also be attractive to people who wanted a smaller, more manageable section, Nock said.

The property is owned by Kiwi businessman and philanthropist Sir Owen Glenn. Photo / Andrew Warner

From humble beginnings Glenn, now aged 82, made his initial fortune in logistics in the US. In 2016 he was worth an estimated $400m.

In 2002 he donated $7.5m for a new business school at the University of Auckland. It was believed to be the largest private donation in New Zealand educational history.

He also made substantial donations to Christchurch earthquake recovery.

Glenn's donations to Labour and NZ First, however, ended in controversy when they were initially denied by both political parties. That, along with Glenn's assertion he was being considered as an Honorary Consul to Monaco, led to a public falling out with then Prime Minister Helen Clark.

Glenn and fellow Kiwi businessman Eric Watson used to own the Warriors rugby league franchise.

More recently they have been embroiled in legal action over British property interests with a UK court ordering Watson to pay Glenn £129m ($248m) in damages.

Glenn was knighted in 2013 for services to philanthropy.

The land is zoned residential and is in the "area of benefit" for Kerikeri's town water supply and new wastewater plant. Photo / Peter de Graaf

Resource consent is required for the Hall Rd development because of the scale of earthworks and, due to its relatively high density, breaches of the rules around sunlight and impermeable surfaces (ie, the percentage of land covered by houses, concrete or other surfaces that can't absorb water).

The land is zoned residential and is in the "area of benefit" for Kerikeri's town water supply and new wastewater plant.

The consent application raises concerns about whether the Cobham Rd pump station and parts of the sewage network can handle the increased wastewater volume.

Possible solutions included an on-site pumping station or an off-site upgrade of council infrastructure. If the latter was required, it was not clear from the application whether ratepayers or the developer would foot the bill.

The Advocate has asked the council whether its sewage network and new wastewater plant have sufficient capacity to cater to Hall Rd's building boom.

In April the Advocate revealed a developer was planning to build 300 homes in central Kerikeri in an area between the town centre, the Heritage Bypass and Kerikeri River. The land is currently covered by gum trees.