A proposed apartment complex in Three Parks designed specifically as affordable accommodation for local workers could be jeopardised by council’s proposed inclusionary zoning plan change, its developer says.

The Willowridge Development concept is to build 25 three-storey townhouses, each with 176m2 of living space plus courtyards, balconies and garaging.

“Each house has three bedrooms but [they] can be split into a one and a two bedroom self-contained units, so in effect there can be up to 50 individual rentals,” Three Parks developer Allan Dippie said.

This proposed apartment complex will be located on the boundary of the Wānaka Recreation Centre’s football fields and athletics track.

The apartment complex is planned to border the Rec Centre’s football fields and athletics track (at the bottom of the picture).

“Companies can rent single or multiple units for their staff depending on their requirements or needs,” Allan said

He imagined the greatest demand would come from businesses in Three Parks but it might eventually attract a mix of permanent and seasonal workers, including those in the ski industry, tourism related staff, subcontractors and construction staff.

The apartments are at a design/feasibility stage at present and the viability of the project is “a critical factor,” Allan said. 

While it is important to build high quality, well designed solutions to the accommodation shortage, the main issue is ensuring they are also affordable, he said.

“No use building housing people can’t afford to occupy.”

And one of the economic viability factors being considered is the added costs associated with Queenstown Lakes District Council’s (QLDC) proposed inclusionary zoning plan change.

Inclusionary zoning

Council’s proposed inclusionary zoning plan change is still under consideration but if it is adopted unmodified “it would kill this apartment complex”, Allan said.

A comprehensive housing proposal like this Three Parks project is pretty marginal from an economic perspective, Allan said, without also ‘subsidising’ the QLDC’s affordable housing plans.

The plan change is considering a new tax on residential development and construction to provide for affordable housing. The tax will be added to land sales and developments not already covered by negotiated agreements to provide funding or land to the Queenstown Lakes Community Housing Trust (QLCHT).

The QLCHT supports the key principles of the plan change but believes the council’s proposal is too wide in scope, and requires some refinement.

Read also: Mixed support for inclusionary zoning from housing trust

QLCHT has built and delivered a total of eight housing developments (119 homes) which, together with other houses purchased, has helped 244 local households into homes throughout the district. Further housing developments (totalling over 100 homes) are underway at Northlake, Lake Hāwea and Arrowtown.

Allan acknowledged the trust has “done some great work but it’s a minor player in the housing supply market across the district”. 

A range of initiatives needs to be explored, especially initiatives that encourage and facilitate housing rather than discourage development, he said.

IMAGES: Willowridge Developments