Draft Long Term Plan - Key Issue 2: Property

Financial planning for Queen Mary south site

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Current situation

In October 2023, the Council purchased a 9 ha block of land at 20 Amuri Avenue, Hanmer Springs. The block was previously owned by the Crown. The Council, Te Rūnanga o Kaikōura (TRoK), who have mana whenua status in Hanmer Springs, and Ngāi Tahu Property entered into a heads of agreement to provide NTP and TRoK with first right of refusal to be the development partner for any development of the land. TRoK also has the first right of refusal on disposal of any part or all of the land.

The Council also owns the sports field on the corner of Jacks Pass Road and Argelins Road (Hanmer Springs sports reserve). The sports pavilion on that site is in poor condition and needs significant work or replacement. Over the years, there has been significant development in the surrounding area. The land is designated as a reserve.

The future of the site

The central northern part of the site contains old buildings from the former Queen Mary Hospital. These are in poor condition and of lesser historical significance than the Queen Mary Soldiers’ Block, which is being restored. Under each of the options outlined below, it is anticipated these old buildings would be demolished.

Planning is in the early stages. However, the Council is currently considering whether the site could be used for the following purposes:

• A reserve and sports fields on the western part of the site;
• commercial and/or retail development on the eastern part of the site (adjacent to Amuri Avenue);
• commercial, retail, accommodation and/or residential development on the central northern part of the site (by the old hospital buildings).

The southern part of the site features an historic spiritual garden, originally developed by patients and staff at the Queen Mary Hospital. This land is of historic significance to some members of Te Rūnanga o Kaikōura. Council is not proposing to develop this part of the Queen Mary south site. All of the options assume that this part of the site is retained for its current use.

In addition, the Council is considering repurposing the sports reserve in Jacks Pass Road for residential development from 2027/28 onwards. If this were to occur, then the sports field at the Queen Mary south site would replace part of the existing sports reserve. This would involve revoking the reserve status at the current Hanmer Springs sports reserve.

As part of the development of the Long Term Plan, the Hanmer Springs Community Board has requested the inclusion of a new pavilion for Hanmer Springs at a cost of $0.5 million. It is noted that a building at that cost would be modest. It is envisaged that the location of the new pavilion would depend on whether a sports field is established at the Queen Mary south site.

The western part of the Queen Mary south site is smaller than the part of the Hanmer Springs sports reserve the Council is proposing to develop. Hence there would be less land available for residential development at the Queen Mary south site. It would be possible to establish a similar number of titles on the Queen Mary south site, but the average title size would necessarily be smaller than if the residential development were to occur on the Hanmer Springs sports reserve.

The western part of the Queen Mary south site is well suited for use as a sports field as it has a natural amphitheatre on the eastern side. Also, the site is connected to reserve areas, both to the south and to the east.

OPTION 1:

Council (with or without a partner) to lead a commercial, retail and/or residential development on part of the Queen Mary south site.
Council to build a sports field and sports pavilion on the Queen Mary south site and to repurpose part of the Hanmer Springs Sports Reserve for residential development.
A basic sports pavilion would be established at the Queen Mary south site.
This option assumes Council retains the western part of the site and the spiritual garden.

OPTION 2:

Council (with or without a partner) to lead a commercial, retail and/or residential development on part of the Queen Mary south site.
Part of the Hanmer Springs sports reserve would continue to be used as a sports field.
A basic pavilion would be developed at Hanmer Springs sports reserve rather than at the Queen Mary South site.
Council would develop part of the western side of the Queen Mary south site for residential use. The south western part of the site would remain as green space due to the earthquake faultline.
This option assumes Council retains the western part of the site and the spiritual garden.

OPTION 3

Council to subdivide off a block(s) of land at the Queen Mary south site and on sell that block to another party for commercial, retail and/or residential development.
This option assumes the Council retains the western part of the site and the spiritual garden.

OPTION 4

Do not progress development at the Queen Mary south site and retain the whole site.