Land sale could net CODC $2.8m

AN announcement about the joint venture partner for a residential subdivision in Alexandra will be made soon, as the Central Otago District Council finalises contract details.

The Vincent Community Board will sell a 6.5ha block of councilowned land north of the Molyneux netball courts, on the outskirts of Alexandra, alongside the Otago Central Rail Trail, to a developer.

The council will receive 50% of the net profit of the subdivision, receiving a guaranteed minimum of $500,000.

However, the development was expected to generate millions for ratepayers, a report by council property officer Tara Bates said last year .

The value of the land was estimated at $2.3 million, and the estimated minimum total return to the council after development costs was $2.8 million, her report said.

Council property and facilities manager Mike Kerr said in February the identity of the joint venture partner would be announced that month, but no announcement has yet been made.

Council executive manager planning and environment Louise van der Voort said last week the council was still working ‘‘on some of the finer details regarding the contract’’.

The contract had been ‘‘more complex than anticipated, and although we are close to resolution, the exact timing is dependent on external specialist advice’’, she said.

Last year’s report also said the reason for the project was to satisfy the demand for residential sections in Alexandra.

‘‘This is based on feedback from developers, real estate agents and builders that there are no other residential developments of any significance planned to come to the market,’’ the report said.

The advantages of the development included enabling the council to share in the estimated profit without providing any capital development funding, the report said.