Christchurch City Council has today agreed to sell a block of land in Hornby to a non-profit consortium that is proposing to build a 42-unit complex for low to medium income residents.
At today's Council meeting, it was decided the 18,930 square metre piece of land at 2 Goulding Avenue (also known as 36 Shands Road) should be sold to a consortium - comprising New Zealand Housing Foundation, Abbeyfield New Zealand, Housing Plus Charitable Foundation and The Salvation Army - for $525,000 inclusive of GST.
The sale is subject to the development of a legal requirement that would ensure the Council would have the right to re-purchase the land for the same price if it was not to be used for social housing purposes.
It is also subject to New Zealand Housing Foundation receiving $2.5 million and the Canterbury Community Trust receiving $2.5 million from the Government towards the development. The Council stated that the site should return to Council ownership if building of the complex has not begun by June next year. It also reserved the right to participate in a consortium should the opportunity arise.
The decision to sell the block of land means that a staff recommendation to retain the land to build a Council-owned 35-unit social housing complex will not go ahead.
Councillor Glenn Livingstone says the consortium proposal will greatly benefit the city. "The proposed complex will include social housing units but it will also offer more affordable home ownership to people who would not otherwise be able to afford their own homes. At a time like this, we need to be looking at how we can provide these much-needed services in an innovative way. I'm excited about the opportunity we have been given to work with the consortium."
Mayor Bob Parker says this is great news for Christchurch people.
"South-west Christchurch is one of the fastest growing parts of the city so it makes sense for the Council to support a development of this type on that side of the city. This is a win-win situation for the Council and our residents."