Govt tick for Peacocke cash
Hamilton has got the tick for $308.4 million in funding to get Peacocke ready for thousands of houses.
The move could propel one of the city’s biggest growth cells into action but will also push up city debt.
The Government has said the money’s there for Hamilton City Council – as long as it decides to go ahead with growth in the southwest.
The money is a mix of interest-free Government loan and transport subsidies, and would be used to prepare Peacocke for 3750 new houses in ten years.
To get the cash, council would have to reconfirm the Peacocke focus when the the long-term plan is approved in mid2018, and sign legal agreements.
The previous government created the billion-dollar Housing Infrastructure Fund (HIF) to speed up the creation of new housing areas.
It was only available to fast-growing Kiwi cities and offered a 10-year, interestfree loan.
Both the Government and Hamilton City Council want more homes, King said at a meeting last week.
‘‘When the new government first got in we – [chief executive] Richard [Briggs] and myself – went to an event when the ministers were there, and we targeted [Housing and Transport Minister] Phil Twyford. He made it very clear he wasn’t going to stand in the way of this HIF and he’s been true to his word with the signoff.’’
Council papers say the $308.4m figure comprises a 10-year interest-free loan of
$189.1m, and an advanced subsidy of
$119.3m from the New Zealand Transport Agency.
The funding would be used to get the Peacocke area ready for 3750 new houses in the coming decade, and a total of 8400 homes over 30 years.
It would mean big ticket items – such as a bridge over the Waikato River – could be done earlier, but one of the risks for council is that debt would shoot up.
On the other hand, not paying interest would save an estimated $70m, staffers say.
The billion-dollar fund was a unique opportunity for one-off, advanced funding, a report to councillors said.
Approval for a significant chunk of the money ‘‘is certainly favour on this town from central government’’, King said, and he was grateful.
Council is expecting the pressure for new houses to increase as the population grows – it’s forecast to reach 200,000 by
2034 – and a trend towards smaller households continues.
Finance Minister Grant Robertson announced the Peacocke approval in a speech to the Waikato Business Summit.
‘‘We expect that construction can start in earnest when long-term plan approval is gained in June.’’
Before then, council must consult the community through its long-term plan process and the final paperwork has to be done, he said.
The plan also includes a new southern link road to connect with State Highway
1 on western Hamilton and ‘‘swing past the southern edge of Peacocke’’ to link a new airport employment zone with eastern Hamilton.
Back in the council chamber, Cr Mark Bunting asked if there had been any progress on a better deal for the loan, which wouldn’t be such a hit on council’s debt-to-revenue ratio.
Council is working on ideas with key bureaucrats, city growth manager Kelvyn Eglinton said.
Options include working with Crown Infrastructure Partners on a special purpose vehicle (SPV) – a way to take the debt off council’s balance sheet and put it on that of the Government-owned company.
Hamilton is the first council to go through the HIF process, Eglinton said.
‘‘Phil Twyford made it very clear he wasn’t going to stand in the way of this HIF and he’s been true to his word with the signoff.’’