Coromandel lifts development ban

A development ban that has halted subdivision of some of the Coromandel coastline's hottest real estate is expected to be lifted at the end of next year.

The Thames Coromandel District Council will put out a combined tender for $27 million worth of work developing wastewater treatment plants for Tairua and Pauanui as well as Whangamata and Whitianga.

Spokesman Peter Hazael said the council hoped by combining work into a single multi-stage tender it would attract the best price for the work. Tenders would open next month and the council expected work on the long-awaited Tairua and Pauanui wastewater treatment plant to be completed within 20 months.

The new plant would cater for up to 5400 new homes in the Tairua-Pauanui area, which has been subject to a development ban for the past five years.

The present sewerage system could not cope, particularly during the summer peaks when the population rises from about 3000 to 20,000.

Property prices have tripled in some cases since the subdivision ban was in place. While Tairua real estate agents say the moratorium has slowed business for the town, waterfront property prices have skyrocketed from $350,000 to $1.4 million and tradesmen remain busy.

Work on the Tairua and Pauanui plant was halted when ESI, the company contracted to build the plant, went into receivership with a loss to ratepayers of $800,000.

Environmentalists say the delay and extended ban gave residents time to catch up to developers, with work on long-awaited community plans and initiatives aimed at protecting the Coromandel's special places.

Lifting the moratorium will come at a price to ratepayers, however, with the council demanding 4.5 per cent more in rates next year to service the extra debt of $100 million for new infrastructure in the next three years.

A further $70 million will be spent in the following seven years.

This was the perennial problem - a ratepayer base of 25,000 and a peak population of up to 150,000, said Mr Hazael. But it was a holiday resort and a popular destination for two to three weeks of the year.