Kāinga Ora city development project canned

Kāinga Ora has announced that it will not be going ahead with a proposed development in Nelson’s city centre.

The two sites in Achilles Ave and Rutherford St Nelson were earmarked for development, with Nelson City Council agreeing to sell the land to Kāinga Ora in October 2021.

Council placed conditions to the sale around the mix of social and affordable housing the proposed development would include, and the building design. It was also subject to Kāinga Ora carrying out due diligence on the site.

The two sites would have become home to a five-storey building of 50 apartments and an eight-storey, 125-unit development.

Regional director Nelson, Marlborough, and West Coast, Julia Campbell, says thorough investigations have shown that is not financially feasible for Kāinga Ora to provide a mix of only social and affordable housing on the two sites.

“We remain committed to working closely with Nelson City Council as together we recognise the need for housing in Nelson’s city centre,” she says. “Kāinga Ora is also committed to providing more public housing across Nelson.

“Our early plans suggest we could provide up to 270 new homes in the coming years. This includes our proposed plans for new homes in Examiner and Nile Sts, on the city fringe, which are progressing well.”

Projects on Neale Ave and Waimea Rd are also progressing.

Nelson Mayor Nick Smith says the development will now take a different direction amid significant housing pressures.

“I welcome the clarity on the Council-owned Achilles Ave-Rutherford St sites as the uncertainty is not good for the city. Today’s announcement enables us to get on and find alternative uses for these strategic sites,” Nick says.

“The timing is helpful in that we are planning a summit on the future of the city next month. This decision not to proceed reinforces the big job we have to attract new investment into the central city.

He says the announcement does not affect Nelson’s Bridge to Better project.

“Council will be continuing with the Bridge to Better $78 million redevelopment in this key part of the city, with major upgrades of infrastructure and streetscape.

“This investment remains vital to Council’s broader objective of revitalising our city, providing the infrastructure for central city housing development and improving the resilience of this area.”

Councillor Rachel Sanson, chair of council's community housing acceleration taskforce, acknowledges the financial challenges of delivering social and affordable housing on these sites, but emphasises the need for affordable and resilient housing in Nelson.

“We continue to work closely with Kāinga Ora, other community housing providers, and development partners,” she says. “The need for affordable housing in our community is significant. The opportunity to increase housing, and for this to contribute to revitalisation and vibrancy in our city centre is immense, and I'm optimistic about this.”