Nelson City Council is considering selling two of its central city properties, worth millions of dollars, to Kāinga Ora to create social and affordable housing.
A concept design of the project with Red Art Gallery on the left and the Nelson Evening Mail building on the right. One of the proposed developments in Achilles Ave is shown in yellow. Photo: Supplied / Nelson City Council
The land in Achilles Ave and Rutherford St is currently a mix of commercial property and car parking but could see the development of 175 homes up to eight storeys high built in the central city.
Nelson Mayor Rachel Reese said the proposal was an opportunity for much needed inner city intensification and a way to create housing security for people.
The larger of the two properties - 69 to 101 Achilles Ave - is almost 4500 square metres and is made up of two buildings, currently leased by 4 Seasons and Community Art Works (CAW) and with two parking spaces. Its current rating valuation is $3.5 million.
The other property - 42 Rutherford Street - is leased by Zumo Coffee House, a cafe and coffee roasters. The 961 square metre property has a rating valuation of $1.36 million.
The two areas of land. Photo: Supplied
She said housing is a critical issue for Nelsonians - with house prices rising 88 percent and rents more than 30 percent - in the five years to December.
Most people who didn't own their own home in Nelson are unable to do so, with 40 percent of renters finding service costs prohibitive due to their income. It is only enough or, in some cases, not sufficient, to cover day-to-day costs and living expenses.
The sale will be voted on at a council meeting next week and if agreed upon, will go out for public consulation. Kāinga Ora then plan to complete the due diligence process, before finalising the purchase of the property.
The properties on Achilles Ave, which could be developed into social and affordable housing by Kāinga Ora. Photo: RNZ / Samantha Gee
Less than half of the development is earmarked for social housing and the remainder for affordable housing, with the ground floor of the buildings to be set aside for commercial or community use.
If the project goes ahead it would be one of the largest mixed-use developments outside of the country's main cities.
Last November, Nelson City Council divested its 142 community housing units to the Crown-owned agency, Kāinga Ora, for $19.8m.
The agency currently owns and manages around 1620 homes across Nelson and Tasman.
The site at 42 Rutherford Street which may be sold to Kainga Ora. Photo: RNZ / Samantha Gee
Kāinga Ora happy
Kāinga Ora engagement and partnerships manager Lorellin Syben said the agency was still undertaking its due diligence process and supported Nelson City Council seeking public feedback on the proposal but was thrilled with the chance to collaborate with the council.
Deputy mayor Judene Edgar said there were fewer than 100 people living in the city centre and the council had a goal to grow that number to 2000.
"The potential ability to have accommodation in the city centre where people could walk to Nelson Marlborough Institute of Technology (NMIT), people could walk to a supermarket, people could walk to to all our amazing cafes, restaurants, bars and theatres actually has real possibility."
She said it gave people more opportunities - to walk, cycle and take public transport.
"We can sometimes forget just how beautifully compact our city is and that we have so much within a 10 to 15 minute walk."
This concept shows how the development would appear looking down Bridge Street. Photo: Supplied / Nelson City Council
Nelson MP Rachel Boyack said it was "no secret" the region was facing housing challenges that had built up over decades.
"We need developments in the Nelson Tasman region that provide for affordability. Part of the challenge is around supply but in my view it is about the right kind of supply and it is my view that supply needs to come from the public and private sector and it's good to see options being put on the table."
The area around Bridge Street currently. Photo: RNZ / Samantha Gee
She said it was important people shared their thoughts on whether the council should divest the land to Kāinga Ora and the kinds of housing solutions they wanted to see.
"I want to hear from the community about whether this type of development is what they think is going to be needed for our community. We do need that right mix across Nelson and Tasman of public housing, affordable rentals and affordable first homes."
The consultation will open on 30 August and feedback can be provided through the Shape Nelson website.