Article: Commercial
Whangarei continues to defy the recession
The latest and greatest news for property, progress and people is the announcement last week of the $80,000,000.00 shopping complex to be built at Okara turning the existing retail facilities of The Warehouse, Countdown, the bowling alley etc into something that will rival the best that Auckland has to offer.
The details available to date are contained within the following press release exerts from the Whangarei District Council and BWH Properties:
WDC Proposal To Sell Old Boy’s Fields Could Bring Jobs, Retail To District
Whangarei District Council is considering a proposal to sell 5.8 hectares of land at Okara to BWH Properties Ltd for redevelopment as a large scale commercial site focusing on “big box” retailing. The sale of the land, which is currently used for playing fields and clubrooms by Old Boys Rugby Football Club, will be subject to a public consultation process as required by the Local Government Act 2002.
The proposal would concentrate “big box” as the cornerstone of retailing activity in the Okara area and physical links would be established with the existing retail developments.
BWH Properties, a consortium headed by Hill Construction Limited, is understood to have secured commitments from several major retailers to enter leases should the development proceed. While specific details are under wraps, BWH has given an undertaking that the development will be of international standard, with undercover parking.
The price to be paid, should the deal proceed, is $20 million, more than double current market value and a significant cash injection for Council’s budgets at a time when there are multiple competing demands for funding. Mayor Stan Semenoff says:
“That apart from the obvious financial benefits, the proposal will provide an economic stimulus when it is sorely needed by creating jobs for Northlanders both during the construction and retail operation phases.
We are delighted that Whangarei has drawn this level of interest from developers and retailers at a time when many other places across the globe are facing a downturn.
This proposal gives us a degree of control over the location of our larger retail outlets and allows us to progress our plans for the CBD and Town Basin, where the emphasis will be on boutique retail, tourism, apartments and hotels.
Best of all for our shoppers, it would bring shopping up in Whangarei up to Auckland standards as major retailers not seen here before are understood to be involved.”
At the public consultation phase BWH will begin their due diligence. The consultation will be a public process which will involve Council Hearings, and there will also be direct consultation with interested stake holders. Following the consultation process, Council will meet to deliberate and decide whether to enter a conditional agreement for sale of the land. The sale will also be subject to satisfactory completion of due diligence by BWH, a change of land use, subdivision, provision of access and a number of other conditions.
Retail Development Would Bring Huge Benefits To Region
The spokesman for the BWH Properties consortium which has offered to buy Whangarei District Council land at Okara, Wayne Hill, says he is excited to be involved in an $80 million project of such huge benefit to Whangarei.
He said a review of retail developments around Australia and New Zealand showed a trend toward larger shopping complexes with undercover parking.
The jobs created by the new outlets would be of enormous economic benefit, as would the determination to use Northland-based contractors to keep the development work local.
An added benefit would be that the centre’s parking would also be available to patrons of the adjacent regional multi-events centre, as a condition of Council’s agreement to take the property sale to consultation.
The fact that Okara was the one area of interest to the prospective new major retailer had contributed to the offer to pay $20 million for the site, more than double its current commercial valuation, Mr Hill said.
The cornerstone retailer was not interested in any other location in Whangarei, so it was imperative to secure the Okara site if there was to be a single, comprehensive retail development bringing maximum benefit to Whangarei.
Mr Hill said:
“I also knew as a local that we had to make an attractive offer. If there was not a major incentive for the ratepayers, the Council would not entertain the sale of the site.
Council faces the expense of relocating the rugby club and might also want to look at purchasing other property for future recreational use, so we have offered to pay a premium which we feel acknowledges those factors.”
He said depending on the granting of resource consents, he would like to see some of the preparatory work begun this summer if the consultation process sees the Whangarei District Council agree to the sale of the land.
It is essential that the public recognise the economic and lifestyle benefits that this brings to Whangarei so we’ve listed some here:
1. There’s the initial benefits of the building phase with the construction jobs and building materials demand that will be generated.
2. There’s the intangible but important boost to general business confidence which will result in complimentary investment and development in surrounding areas such as the CBD and Town Basin.
3. There’s the immediate sale of Council land which could relieve the pressure on rates and general development levies.
4. Once built and tenanted the positive economic multiplier effect will continue with new businesses attracted and jobs created.
5. Today’s consumer appreciates sophisticated retail presentation and service, and for many shopping is a recreational experience, an important part of their leisure and social activities and family bonding. The ambience created by a well designed, spotless, spacious, sparkling and modern retail environment can provide experiences that are therapeutic, uplifting, educational and satisfying on many different levels.
6. One of the criticisms of Whangarei is that there are few activities for young people. Here will be a positive haven for them to meet that’s safe and secure.
7. Then there’s tourism. Northland is a premier tourist destination. This will provide visitors with another activity which will encourage expenditure that would otherwise not occur.
8. Then there’s lifestyle settlers. Northland is also a major lifestyle destination. This will be another attraction for new settlers and property sales and house building will increase.
9. The list goes on. For example, our children attracted away by better opportunities elsewhere will have something extra to encourage their return.
So what’s the downside?
According to the front page of the Advocate, this strategic real estate has been the home for the Old Boys’ Rugby Club rooms and their two rugby fields for 40 years and they are concerned about their future.
Interestingly those in the construction industry are major supporters and players of rugby and it’s the construction industry which will receive the major initial benefits.
PropertyPlus spoke to Wayne Hill about this and he said:
“Cricket had similar concerns when they relocated from Cobham Oval. They are now very happy with their new location and building which is now an iconic part of Whangarei”.
Wayne Hill’s company Hill Construction built this and has a proud legacy of many others throughout Whangarei. Images of his recently completed Oceans and IC Motors buildings are included in this article and he would prefer to continue his life’s work building for Whangarei, rather than seek work outside the district.
