File photo. Photo: RNZ / Angus Dreaver
A mixed social and affordable housing development in central Nelson will no longer go ahead - after investigations by Kāinga Ora found it was not financially viable.
In 2021, Nelson City Council agreed to sell two sites - one on Achilles Avenue and another on Rutherford Street to Kāinga Ora for development, subject to conditions around the mix of housing and the building design.
It could have seen the development of 175 homes up to eight storeys high built in the central city. Less than half the development was 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.
Kāinga Ora Nelson, Marlborough and West Coast regional director Julia Campbell said thorough investigations had shown the proposed developments on Achilles Avenue and Rutherford Street were not feasible.
She said Kāinga Ora remained committed to working with council to meet the need for housing in Nelson's city centre.
Mayor Nick Smith said the announcement enabled council to get on and find alternative uses for the central city sites, adding that Nelson continued to have significant housing pressures.
"The timing is helpful in that we are planning a summit on the future of the city next month. This decision not to proceed reinforces the big job we have to attract new investment into the central city."
He said the decision did not affect Nelson's $78 million Bridge to Better redevelopment project, to upgrade key infrastructure and the city's streetscape.
Councillor Rachel Sanson, who also is the chair of the council's community housing acceleration taskforce, said she acknowledged the financial challenges of delivering social and affordable housing on the sites, but said there was still a need for affordable and resilient housing in Nelson.
"We continue to work closely with Kāinga Ora, other community housing providers, and development partners. The need for affordable housing in our community is significant. The opportunity to increase housing, and for this to contribute to revitalisation and vibrancy in our city centre is immense, and I'm optimistic about this."