Council explains delays to project
THE developer behind a Cromwell accommodation complex is refusing to comment about the timeframe of the project, but the Central Otago District Council has provided more explanations for delays in the development.
The AC/JV Holdings Ltd development — initially meant to be a seasonal workers’ complex, but since redesigned as one with selfcontained rooms for anyone seeking accommodation — has been granted several extensions by the council since the sale of the 7 hectares on Cemetery Rd was announced in March 2016.
The conditions of the sale were initially that ‘‘reasonable progress’’ on the development needed to have been made by March 30 this year.
‘‘Reasonable progress’’ meant the company was required to have built accommodation for a minimum of 200 people and have a code of compliance for that, plus have the floor slab in place for another 200 people, Central Otago District Council property and facilities manager Mike Kerr said earlier this year.
But the building consent is still being processed by the council, and AC/JV Holdings director Alistair Hey said this week he did not wish to provide any further comment about the project.
Council chief executive Sanchia Jacobs said the road formations on the site had been dug out, and this week provided more information about the delays in the project.
She said it took six months to determine options and have discussions with parties to fund the extension of an access road to the boundary; it took ‘‘considerable expense and time’’ for the developer to update the internal construction design while still keeping within the resource consent; during design there had been amendments to fire require ments in the Building Code that meant more time was needed for some redesign and more work from engineers; and it had been ‘‘extremely difficult’’ to procure fire and structural engineer services, given the busy building sector.
Ms Jacobs said the project was subject to ‘‘reasonable progress milestones’’, as well as financial penalties for nonperformance.
The latest conditions are for floor slabs for three of the buildings in the development to be poured and tilt slab walls be up within six months of building consent; and for all buildings to be completed within two years of building consent.
The building must also operate as worker accommodation for two years.
The sale price of the land has not yet been released, and will only be made public after settlement date, and the level of any penalties is confidential until either settlement or contract cancellation.