Queenstown Lakes District Council (QLDC) has confirmed the $13.78M purchase, on behalf of ratepayers, of a 14.55 hectare property near Queenstown.

The acquisition of 516 Frankton-Ladies Mile Highway is a “valuable step towards the long-term development of much-needed community assets and services” for the surrounding communities of Lake Hayes Estate and Shotover Country, the council said in a statement yesterday (Monday May 6).

The statement said the final use of the property is yet to be determined, but it will address, in part, the need for “additional facilities identified in QLDC strategies for community facilities, parks and open spaces, and regional recreation and sports facilities”.

Sports fields and partial use for a transport hub or park and ride facility were also cited, and council added the site offers “potential education uses such as a new primary or high school”.

The property could be used for sports fields, a transport hub, park and ride, or a new primary or high school, council said.

The property has a five bedroom house with a 10-car garage, a large implement shed, a small in-ground swimming pool, and 400 mature sweet chestnut trees.

In March deputy mayor Calum MacLeod said he believed the purchase of the property would benefit the district.

When specifically asked should Wanaka Ward ratepayers pay for this property he said “I’m not sure that’s come out in the wash yet.” The Wanaka App has asked council to confirm whether or not Wanaka Ward ratepayers will contribute to the property’s purchase.

QLDC chief executive Mike Theelen said council officers completed due diligence before recommending elected members agree to conclude the purchase. Elected members approved the terms of the agreement to complete the purchase at a public-excluded council meeting session last month.

“The purchase is in line with a number of council strategies and policies, and we have been able to secure the property at a net cost of $13.78M. This has been funded through loan funding,” Mike said. The property was valued at $6.4m in 2017.

The agreed purchase price for the property was $15.5M. As the vendor is not GST registered, QLDC can claim GST on the transaction reducing the net cost to $13.78M.

PHOTOS: NZSothebys.Queenstown