Minister of Regional Development Kiri Allan and Peka Lands Trust trustee Andrew Kusabs at the sod turning for a new industrial park south of Rotorua. Photo: LDR / Andrew Warner
A new industrial park the size of 13 rugby fields has been announced for Rotorua - a city that has been described as "bursting at the seams".
Formerly forestry land, Peka Lands Trust on Thursday announced that development of a 13ha block south of Rotorua would begin this year.
The park is part of a 633 block of Māori owned land. The entrance is near the Waipā recreational bike hub off State Highway 5.
The trust developed a master plan with involvement from Rotorua Lakes Council and Waka Kotahi, and was kick-started by a $6 million Regional Strategic Partnership Fund loan.
A ceremony was held on Thursday morning to begin stage one of the project.
Regional Development Minister Kiri Allan attended and speaking to Local Democracy Reporting, after shovelling the first dirt, said the park was a great shape and size considering Rotorua was "bursting at the seams".
It enabled growth and brought industry to the edge of the city, and she said it was pivotal for Rotorua.
She said with the overall size of the land there was scope for growth, and believed there would be a high level of demand.
Trust chairwoman Helen Beckett said the project was 40 years in the making and now the trees had been harvested it was time to move to the next stage.
It was estimated to cost a total of $20 million for infrastructure, including roading and connecting the site to stormwater, drinking water and wastewater networks for the first stage of the project, and earthworks for stage two. Stage one comprised 12 lots.
Beckett would not say who had voiced initial interest in the project but said it had come from a number of sectors, which included biofuel.
She believed interest would also come from businesses in established industrial areas in Rotorua as the space at the park enabled growth. Any areas vacated could also be rezoned to become residential, she said.
Beckett called it a park, instead of an estate, because it would incorporate green spaces.
"It is not going be a concrete jungle at all."
Acting Rotorua Mayor Sandra Kai Fong spoke at the announcement and referred to the Future Development Strategy which looked at how the city would grow in the decades to come.
"One of the things we need to ensure is we have sufficient industrial land for that growth."
Following the event, Kai Fong said Peka Block was already zoned as industrial land and the council would support wastewater and water infrastructure to progress the project.
She said it would be partially paid for through development contributions and that Rotorua required more land for businesses over the next 30 years, including land dedicated to industrial businesses.
RotoruaNZ chief executive Andrew Wilson said in a statement the development of Peka Block was great news for Rotorua.
"It will allow for more business expansion, create more jobs, and further contribute to the economic development in our city."
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air.