Long-awaited progress in Government's bogged down fast-track process to enable innovative housing solutions.
A big Sleepyhead factory and 1100-home development has been given a go-ahead by district planning commissioners in Waikato – a critical step towards the biggest fast-tracked development under new rules.
Environment Minister David Parker had agreed Sleepyhead parent company Comfort Group could apply to have its project fast-tracked, but first it had to get the 178ha block of rural floodplain rezoned for industrial, commercial and medium-density residential development. That was approved today.
That has been contentious: the Waikato Regional Council and the NZ Transport Agency Waka Kotahi both oppose the $1.2 billion development, as do some local landowners.
They fear that by reclaiming the low-lying land, the Comfort Group's property arm Ambury Properties Ltd will reduce the overflow capacity for the nearby Waikato River, and clog up the short stretch of Expressway through to Huntly.
They have 30 days to appeal the decision, before the Environmental Protection Authority can resolve the fast-track approval of the project.
The developers want to first build a big foam factory at Ohinewai, with a railway spur to ship the beds they manufacture to Tauranga Port for export overseas. That will be followed by adjoining retail and low-cost housing, targeted at the factory's workers.
“The vision behind The Sleepyhead Estate is to create a genuine community in a beautiful setting for people who want an affordable, quality home, a stable job and a thriving community they can be part of." – Craig Turner, Comfort Group
Initial earthworks for the factory have already begun under separate resource consents, and are expected to take five months. Dependent on those earthworks, and the compaction of the ground, construction of the factory is planned for early 2023 and the company hopes to move in mid-2024.
Some Sleepyhead staff have worked all their adult lives, and some families for a couple of generations, at Sleepyhead's Auckland factories. But directors Craig and Graeme Turner, from the family that own the company, say these workers aren't able to buy homes in Auckland, in the housing crisis.
The Turners want to develop a mixed-use community over the next 10 years with 1100 homes for up to 3,000 residents, and a new factory creating up to 2600 new jobs. The site is located on the eastern side of the Waikato Expressway, bounded by Lumsden and Tahuna Roads and adjacent to the North Island main trunk rail line.
The company says its existing manufacturing facilities at Avondale and Otahuhu are operating beyond capacity, suffer from significant site and transport restrictions, and are generally no longer fit for purpose.
Craig Turner said the rezoning decision was "a major milestone" for both the project and the entire Waikato region.
“The vision behind The Sleepyhead Estate is to create a genuine community in a beautiful setting for people who want an affordable, quality home, a stable job and a thriving community they can be part of," he said.
“We want to create a legacy that will continue to add long term value not only to the Comfort Group but to the part of Waikato District, including Huntly, that we have chosen to make the new corporate home for the Comfort Group after nine decades in Auckland.
“For a number of years now, demand for residential property has continued to outstrip supply and put upwards pressure on house prices. This has made it extremely difficult for first home buyers ... The planned 1,100 residential properties will add significantly to the Waikato’s housing supply." – Wendy Alexander, REINZ
“The Ohinewai site presents a unique opportunity to bring an existing, proven, and thriving industry to the district, along with the immediate and future associated job opportunities that will drive the economic development of a region strategically situated in The Golden Triangle between Auckland, Hamilton and Tauranga.”
The Turners have been working through the consultation, rezoning and consenting processes for 20 months, Craig Turner said. With a development of this size and scale, it took considerable time to step through the regulatory process and this, in turn, would be reflected in the project timelines.
The decision on the company’s rezoning submission on the Proposed Waikato District Plan has been under deliberation since hearings in September last year, when submitters presented their case to independent commissioners Dr Phil Mitchell, Paul Cooney, Dynes Fulton and Weo Maag.
“It’s a tremendous stimulus for the Council’s vision to create liveable, thriving and connected communities as New Zealand continues to navigate Covid-19 and uncertain economic times ahead.” – Allan Sanson, Waikato mayor
Waikato District mayor Allan Sanson, who first identified the site for the company, said he was delighted.
“This will mean a major boost for the communities of Ohinewai and Huntly, as well as for the whole Waikato district," he said. "It will bring jobs, revitalise the northern Waikato with affordable new housing, and encourage other commercial investment in the area.
“It’s a tremendous stimulus for the Council’s vision to create liveable, thriving and connected communities as New Zealand continues to navigate Covid-19 and uncertain economic times ahead.”
Archdeacon Ngira Simmonds, the Kiingitanga chief of staff, said the Waikato-based Māori grouping welcomed responsible development in the area. It needed to be considerate to mana whenua needs and environmental considerations, and to bring sustained employment for the people of the Waikato.
Already, Sleepyhead has hired some Huntly locals to work in the Otahuhu factory and has been taking them to Auckland in a minibus early each morning, in anticipation of eventually moving production to Waikato.
Clive Morgan, the District Council’s general manager for community growth, said development at Ohinewai would would deliver a substantial increase in housing and jobs in the district. Ambury Properties will still have to apply for a number of land use and subdivision consents to carry out the planned development, some of which are being progressed under the fast-track process.
The council estimates the factory and residential development will contribute $200m per annum into the local economy; Comfort Group's estimate is even higher at $1 billion expenditure into the local district through investment in infrastructure, construction, and development. The rezoning could enable 2,500-3,000 people to live and work at Ohinewai.
The independent commissioners decided today that the project would bring significant economic, social and employment benefits to an area where there is limited job opportunities, affordable housing choices and community investment.
In a summary of submissions, council staff said the rezoning proposal had been opposed by some submitters on the basis that the Ohinewai locality had not been identified for urban development in the relevant statutory planning documents and that the development would result in a lack of integration with other identified urban growth areas and existing infrastructure services.
Some submitters expressed concern that the proposal would create a car-centric community dependent on the use of the Waikato Expressway for short trips to access services in nearby Huntly or other townships.
The hearings panel concluded the rezoning would enable the people and community of the North Waikato district to provide for their social, economic and cultural well-being, while ensuring that any potential adverse effects could be managed by the comprehensive provisions included in the district plan.
The Hearings Panel was confident the development could be established and operate while managing the effects of the development both within and outside the new zone.
Real Estate Institute acting chief executive Wendy Alexander welcomed the announcement. “For a number of years now, demand for residential property has continued to outstrip supply and put upwards pressure on house prices," she said. "This has made it extremely difficult for first home buyers to get onto the market and has put further pressure on the rental market as people look to rent for longer while saving a deposit for a home.
“Today’s news that independent commissioners have approved the industrial and housing development at Ohinewai is fantastic news, as the planned 1,100 residential properties will add significantly to the Waikato’s housing supply.
“House prices in the Huntly Ward, which Ohinewai falls into, have risen by 72.4 percent in the last year alone, with median house prices increasing from $290,000 in April 2020 to $500,000 in April 2021,” she added. “The planned development will provide housing, jobs, retail opportunities and wider infrastructure to the area."
