13 December 2018

Subdivision project shelved

The Gore District Council has decided not to go ahead with a residential subdivision in East Gore due to a significant increase in development costs.

In February this year the Council launched Matai Ridge, a subdivision that would have delivered 38 serviced sections on to the market, with 17 in stage one. The subdivision was on 3.6 hectares of land purchased by the Council in 2016.

The decision to defer the development was made by majority vote at the Council’s meeting on Tuesday night. The site will be restored into pasture and retained by the Council.

The Council became aware of an increase in costs following a redesign of infrastructure for stage one. The original contract value for infrastructure increased by $392,680, meaning the cost of the development would have exceeded expected returns from the sale of sections.

The sale of only one section off the plans contributed to the Council’s lack of confidence to go ahead with the project at this time. The Council will refund the purchaser’s deposit.

The project has cost $328,345 to date. This figure includes design and constructions costs, and project management and legal fees.

Gore District Mayor Tracy Hicks said the Council’s decision to land bank the site means it still has an approved, fully designed residential development it can roll out when the time is right.

“I still believe there will be an opportunity for this project to be realized, when you look long term and take into consideration the impact of such developments as Mataura Valley Milk.”

Matai Ridge had been the main focus of the Council’s Growth Development Committee, set up following the last local body elections to target economic development and growth.

Gore District Council 29 Bowler Avenue Gore P: 03 209 0330 E: