Waipā District Council has sought a $73.4 million, 10-year interest-free loan from government to help jump-start growth areas in Cambridge.
Cambridge is currently the highest growth area in the Waipā district and plans are already well advanced to open up three growth cells to the west of the town. When complete the new areas will accommodate 2,500 houses, a new 1000-pupil primary school and a range of commercial areas including a large supermarket.
Council chief executive Garry Dyet confirmed much of the planning work had already been done and most landowners and property developers had reconfirmed they remained committed to the development and were “ready to go”. A range of housing was planned, he said, including affordable housing.
“While there is an initial drop-off in growth forecasts because of COVID-19, we know that Cambridge will continue to grow because people quite simply want to live there – and we’re obliged to provide for that. So these developments need to proceed, not just to cater for growth but because they will drive critically needed economic activity in our district as we look to rebuild and recover from COVID-19,” he said.
“However, like every other business, Council will also be suffering a substantial loss in revenue – and we’ll need to factor that into timing. The fact is though, infrastructure like stormwater, water, waste water and roading needs to proceed. Without that investment, the new primary school planned by the Ministry of Education simply can’t happen, so any help we can get from the government to get this moving would be welcomed.”
Council’s proposal to the government for an interest-free loan is part of a region-wide suite of 23 ‘shovel-ready’ projects pitched to Wellington. The government has called for proposals which can be activated within six months to help stimulate the economy. Waipā has put forward proposals worth around $214 million but is unlikely to hear if any have been successful until the end of May.
“This project ticks all the boxes given it will create 200 – 300 jobs, will provide public benefit and will provide sustainable and modern infrastructure,” Dyet said. “It will also give confidence to developers and financiers and will have a positive flow on effect via local wages and local material supplies.”
He said some of the work could begin as early as October this year and the development programme would continue for two to three years.
If the government loan didn’t come through, Dyet confirmed the work would still begin, but probably in a slower timeframe. If so, any interest payable on loans raised by the Council to finance the work would be covered by developers through development levies.
“Much of the work is already programmed and budgeted so this isn’t a new project we have created. But having government support will provide a lot more certainty and confidence and that’s what we need in these uncertain times.”
