Thursday, 26 April 2018
Work gets underway at Balclutha’s Rosebank Industrial Park
Clutha District Council has awarded the main construction contract for the Rosebank Industrial Park to SouthRoads Ltd.
Council received two tenders for the contract and SouthRoads was successful with a tender price of $891,975.79
Work at the site on the outskirts of Balclutha started this week.
The work will be done in two stages with the underground work such as water, sewerage and power due to be completed in July. The above ground work such as road construction will take place after that.
Chief Executive Steve Hill said the industrial park will subdivided into 11 freehold lots, and Council has already entered into a sale contract for one of the larger lots (3.74 hectares).
“Strong commitments have been made for six of the 10 other lots and priority will be given to those who are either current leaseholders or who have expressed an interest early on when Council first purchased the site.”
“All going well, we’re expecting the first new building to be up by September or October,” Mr Hill added.
This construction phase of the project is a contract of approximately $900,000 as part of a total development cost of $2.8 million dollars.
Council made a decision at the end of last year that recognised it is likely the cost of the development will exceed what the sections can be sold for and the decision to take this loss is included in the Long Term Plan, which is currently out for public consultation.
Elected members felt the economic and community benefits of the industrial park far outweighed the monetary loss.
This loss will be covered by the sale of surplus Council property and not by rates.
People are welcome to give feedback about this via the Long Term Plan consultation process.
Mayor Bryan Cadogan said it was imperative that Clutha reversed trends of generations, which had dictated Council’s drive to create this positive development.
“New jobs and new rateable units in tandem with contributing to the vibrancy and future prosperity of our district, are not the only bonuses.
We are excited that this project has contributed to the ‘shake up’ of commercial development and is the flagship that redefines our district’s image – welcome to progress”.
Rosebank Industrial Park background:
Council purchased the 8 hectare former Rosebank Sawmill site in 2015 after being approached by Heartland Bank, which was selling the site.
The purchase was consistent with Council’s economic development strategy, which set Council the task of being more proactive about promoting growth and business investment in the Clutha District.
At the time, Council recognised there was demand from local businesses for somewhere to expand.
Council had also been busy identifying non-strategic property it owned, so it could be sold to establish a fund for future strategic purposes (like the Rosebank Industrial Park site), without creating a cost for the ratepayer.
Council wanted to prevent the site being land banked and left lying idle, when it was a key location for future development opportunities.
Work has been underway since the purchase to clear the site of the all the sawmill buildings and equipment and get it ready for development.