LWB_Issue_838_Online

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15th Feb - 21st Feb

FIRST ON THE STREET

No 838

LAKES WEEKLY BULLETIN

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14 IN 6 SI

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INFO@QMG.CO.NZ

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“No Regrets” planning

Many see the Lakeview Precinct as an inspired Council endeavour to deliver urban density within walking distance from the Queenstown CBD. This 10 ha precinct aims to accommodate 1,800 residents in a mix of accommodation options. Together with a single developer, Council’s control leverage has been key to ensuring we get the best from this development. But who gets the benefit? The developers, Ninety-Four Feet and Augusta Capital, will end up with a projected $100 million profit and billion-dollar asset. They could sell this for capital gain or, as property managers, enjoy ongoing annual lease revenues of some $100 million. Council is assured just $27 million for its share, paid out over a decade or more. Imagine for a moment if Council actually owned the development company? Then in ten or so years, instead of a modest one-off payout, Council would end up owning a billion-dollar asset that would pay substantial annual dividends. This concept is precisely the opportunity the proposed Tarras Airport presents. The 160 ha of essentially bare land owned by QAC is 16 times the size of the Lakeview Precinct. It’s in the middle of what the Queenstown Lakes Spatial Plan identifies as our region’s future principal metropolitan centre. Transferring the numbers, QAC could make a $1.6 billion profit developing a $16 billion asset by developing a town centre accommodating 29,000 people within its current landholding. That’s 32 times QAC’s pre-covid enterprise value and an alpine village with the character and substance to support a knowledge economy’s need for concentrated interactions.

Queenstown Ice Bar launch. Chamber boss Ruth Stokes and Co-owner Bert Haines share a cocktail at their official launch party last Thursday.

is Love reak d e e n u All LUNcH b A s e im :) et But somworks wonders

Those who say “there’s some value in the land, but we need an airport more” are choosing to remain uninformed. The land has massive financial and urban planning value, and a Tarras Airport location would retain the crucial connectivity our district needs. Frankton Flats’ potential for urban densification also offers our region its most potent climate mitigation strategy. The underlying issue we face is ongoing population growth, doubling by 2050 and then probably doubling again. We can’t stop where New Zealanders and migrants choose to live, and our region is attractive for all the reasons we love it.

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