350 homes planned for the site rejected for a special housing project in 2018 over flood fears
A parcel of Rotorua land that was rejected by Minister of Housing Megan Woods for 80 houses in 2018 due to flood risk concerns has been acquired by the Ministry of Housing and Urban Development with plans to build affordable housing.
The site for the planned home development in 31 Ngongotaha Rd was also declined as a possible cemetery in 2004 due to the presence of “sewage sludge.”
Five years and a housing crisis later, which saw Rotorua became a “dumping ground” for the country’s homeless, the home development site seems set for nearly four times as many houses as originally proposed, Stuff reported.
A MHUD spokesperson confirmed the deal and said the site would be used “to provide a mixed development of affordable housing for private market and public housing.”
“The development is for approximately 350 homes,” they said.
The spokesperson refused to divulge how much MHUD paid for the land, citing commercial sensitivity as it seeks a development partner for the site, but did confirm that a memorandum of understanding had been signed with Watchman Residential “to progress design and consenting works.”
Andrea Jacobson, Watchman Capital director, said they “have an interest” but refused to further comment on the matter.
In a 2019 letter from Woods to then-Rotorua Mayor Steve Chadwick, the minister declined the request to turn the site into a special housing area due to flood and congestion fears.
“Firstly, it is difficult to quantify the risk of flooding to the proposed SHA site at this stage,” Woods said. “Secondly, an independent review by an engineering firm of the documents you provided us has found the site is reasonably complex. This is due to the property’s proximity to a stream and potential to increase flood hazard to downstream properties.”
A separate MHUD briefing paper on the site also flagged issues with the site, including flood risk, storm water and congestion issues, Stuff reported.
“On balance, these factors cumulatively weigh against the recommendation of the proposed SHA,” the document said.
The site is near the location of an April 2018 flooding, which prompted Chadwick to declare a state of emergency after 62.5mm of rain fell in just an hour.
Woods refused to tell Stuff how much MHUD paid for the land, but said the development was key to the recently inked Housing Accord and would ensure Rotorua had “better and more sustainable housing outcomes.”
“In order to reduce the reliance on emergency housing in Rotorua, which all parties, including Rotorua Lakes Council, Te Arawa and Ngāti Whakaue, have agreed is a key priority, we must increase the supply of affordable and market homes in the region,” Woods said. “The 350-home development on Ngongotahā Road is a key part of the Government’s plan to address the significant housing shortage in Rotorua and reduce the number of people living in emergency housing. Without developments like this, the reliance on emergency housing in Rotorua will continue.”
Since the site was axed as a housing area in 2019 due to flood concerns, “further investigations have been completed,” Woods said.
“Flood assessments and hydraulic modelling has been completed on the part of the site that is subject to flooding,” she said. “Through these assessments feasible solutions have been identified to mitigate flooding issues and enable residential development. Further design and modelling is now underway, this will be peer reviewed and then assessed under the resource consent application process.”
Todd McClay, Rotorua MP, believed the land was bought by MHUD for $8m, and that the only thing that changed in the intervening five years was its price, which he said was valued at $2m in 2018, Stuff reported.
“They said at the time it was cancelled because of significant concerns about flooding,” McClay said. “What will they do to mitigate their original concerns? Their concern was for 80 houses, why do they no longer have concerns about 350?”
Tamati Coffey, Rotorua-based Labour List MP, said Rotorua needed “new, warm, dry homes.”
“If the concerns for the Ngongotahā housing development have been mitigated, then it’s time to move the diggers in and get building,” Coffey said. “Ngongotahā has a strong hearty community, and this development will no doubt be welcomed locally.”
Reynold Macpherson, former councillor and Rotorua District Residents and Ratepayers group chair, said he was “deeply concerned” about the purchase given the 2018 flooding.
Ngongotahā community members were also opposed to the SHA proposals, Macpherson said, adding that plans for the 300-plus additional homes “would significantly impact the Ngongotahā Village.”
According to the MHUD spokesperson, a public meeting would be held on Jan. 26 at the Ngongotahā Community Hall from 5.30pm to talk about the development, with MHUD Deputy CEO Ben Dalton attending the event to “to provide further information and answer questions.”
The spokesperson added that it was “in everyone’s interest to see a development that will enhance the community.”
“More housing is a solution to housing stress and related community impacts,” they told Stuff. “In recent decades, New Zealand has failed to build enough houses and we need to build more homes to catch up on decades of undersupply. Everyone with an interest is invited to come along to the public meeting to share ideas about what they would like to see in a development that will deliver to the community.”
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