Board land may be released until its future is decided

LEASES on farmland owned by the Maniototo Community Board which could help fund the Maniototo Hospital rebuild could be extended by a year while the board decides on the future of the land.

The board owns and leases out two farm properties in the Lower Gimmerburn district, a 76.8ha area on Hall Rd leased at $6,500 a year and a 117.8ha area on Wilson Rd leased at $18,000 a year.

The land has been leased to Maniototo farmer Mark Harris since 2008 through two fiveyear terms and both leases expired on March 31 this year.

The board will today discuss a report from Central Otago District Council property officer Tara Bates, who has recommended the leases be extended for a year until March 31, 2019, under the same terms and conditions.

Mr Harris had advised he would like to renew both leases for a minimum term of one year, and said any term less than a year would make it difficult to plan ahead for ram buying, winter feed supplies and capital stock purchases and sales, the report said.

The land had been identified as a potential source of income to help fund the rebuild of the Maniototo Hospital, and it was intended to ‘‘put a process in place’’ to determine the future of the land, involving a ‘‘request for proposals’’ for either sale or lease of the land, Ms Bates’ report said.

Maniototo Health Services Ltd (MHSL) has $6.3 million at present for the hospital rebuild, comprising $2.5 million from hospital reserves; $2 million from the Central Otago District Council, to be either paid back by Maniototo ratepayers or funded through Maniototo land sales; and $1.8 million from Maniototo fundraising and grants, including a $500,000 Otago Community Trust grant announced last December.

Hospital leaders are also still waiting to hear if the Labourled Government will provide the $1 million it had pledged towards the hospital project before the election.

Otagobased Stewart Construction was announced as the contractor for the project last week and is expected to start work on the development next week.

MHSL manager Geoff Foster did not disclose the value of the contract, but said the cost of the project was expected to be no more than $7 million.

He expected the residential part of the hospital to be ready by April 2019 and the medical centre and community facility with Xray and specialist appointments to be ready in 13 months.

What to do with the original hospital building had not been decided, Mr Foster said.