$18m spa project needs support
A vision to turn Te Aroha’s old mineral spas into a $18 million boutique spa resort is on the line with Covid-19 forcing the local council to dig deeper into its pockets.
Matamata-Piako District Council has put an application forward to the Provincial Growth Fund for $16 million to make its preferred option, of a $18.8 million spa project, come alive.
The Te Aroha health and wellbeing concept would see the development of the mineral springs, associated accommodation and visitor experiences within the Te Aroha Domain, such as a destination playground.
In March, the council was seeking a grant from the PGF of 50 per cent of the project costs, but due to the Covid19 financial hardship, the council now needs more.
In a meeting, councillors discussed the amount they should ask for given the circumstances, and what added on features could be covered by grants or loans, such as a carpark, playground and additional project management costs.
‘‘The advice that we’ve been given, in the light of Covid-19, is that we should perhaps push the boundaries,’’ chief executive Don McLeod said.
‘‘I think the recommendation is that we apply for $16 million to show
Te Aroha councillor that we still have some skin in the game.’’
With the economic benefit the project can provide for the district, the increased grant should be justified, he said.
The new spa development would utilise 125m2 of geothermal pool surface water via doubling the current geothermal water consent costing $15.7 million alone.
The inclusion of parking and escalation costs would increase the development cost to $18.8 million.
Morrinsville councillor Bruce Dewhurst said he is ‘‘all for the project’’, but couldn’t see why a carpark wouldn’t be included in the original costs.
‘‘I would have thought carparks would have been a part of the facility. It’s no good having a beautiful spa if you’ve got to park two miles away.’’
Te Aroha councillor Teena Cornes said, from her understanding, there were limitations around what the council can apply for.
‘‘There’s a lot of things that don’t fit the criteria like carparks and things like that. We would have to look outside that funding,’’ Cornes said.
‘‘I think we need to be in a position where we definitely apply for the higher amount of what we need.
‘‘The reality is we are going to have to find some money and what that looks like at the moment we do not know, but we need to put a claim in for the maximum we can apply for.’’
She said if the council received less than was applied for, councillors will then look at other options of funding.
Mayor Ash Tanner moved the motion that the council would apply for a grant of $16 million, and the council would pay for the rest.
‘‘We’ve always been aware that council would have to put some money towards this, but in light of the current climate we are in, it will be better if we can get more,’’ Tanner said.
He said the Government is pushing domestic tourism at the moment and their project ‘‘ticks all the boxes’’.
‘‘The reality is we are going to have to find some money.’’