Agreement reached with retirement developer

Arvida Group Ltd and Kerikeri Land Ltd (jointly known as ‘Arvida’) plan to build a retirement village in Kerikeri and will make a financial contribution to local infrastructure to minimise the cost of its environmental impact to ratepayers.

Arvida plans to build 200 villas and serviced apartments, as well as an 80-bed care facility, on an 18-hectare site at the end of Hall Road over a 7-10-year period.  The overall spend is expected to be about $120 million. Stage One of the development, which includes 28 residential units, is scheduled for construction this summer.

The Far North District Council and Arvida have been negotiating and are close to finalising a development agreement that will see Arvida fund the costs of:

• Upgrading and widening Hall Road to 6.5 metres
• Building a footpath and installing streetlights on the road to improve public safety
• Safety improvements at the intersection of Hall Road and Kerikeri Road
• Securing a potential future road corridor that may form part of an Integrated Transport Strategy that the Council will seek community feedback on later this year.

This work will be timed to address the impacts of Arvida’s development as various stages progress.

Arvida has also agreed to make a financial contribution to public amenities in Kerikeri, including footpaths and toilets or similar public good projects.  Arvida’s funding proposals were considered and accepted in principle by the Mayor and councillors at last Thursday’s Council meeting. Neither party has been at liberty to disclose details before now due to confidentiality provisions.

Council Chief Executive Shaun Clarke says the Council is delighted that Arvida is investing in the Far North.  “The proposed development addresses the need for retirement living options in Kerikeri and will free up existing homes for new residents.  It will also create approximately 200 jobs and opportunities for local businesses both during construction and into the future. It is an accepted economic principle that every dollar spent in construction returns between two and five dollars to the community.”

Mr Clarke says the development agreement minimises any financial impact the development will have on ratepayers.  “We believe the financial contribution that we have agreed in principle is fair and reasonable in lieu of development contributions, which the Council stopped officially collecting in 2015 due to slow growth.”

The Council is currently processing resource consents for Stage One of the proposed development and invited Hall Road residents to make submissions on these applications in May.  “Any issues that Hall Road residents and Arvida choose to address jointly may be the subject of a pre-hearing mediation.  Alternatively, if the consent is notified, affected residents will be able to raise concerns about the development at a hearing involving an independent commissioner.”

Arvida Group Ltd Chief Executive Bill McDonald says it has always been Arvida’s stated intention to be a beneficial and trustworthy member of the Far North District community and pay its fair share.  “Mindful that the Far North District Council’s current policy is not to collect development contributions, we initiated discussions with the Council early in the consenting process about contributions we should sensibly make to address our environmental impact. We are pleased these negotiations are now close to conclusion.”