Developer wants to split The Showgrounds into two stages, council wants more detail and financial guarantee

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The developer behind Timaru’s newest retail complex wants to split it into two stages.

The move would mean undeveloped land can be sold off in smaller lots, prompting questions over whether the second stage will be done at all, concerns over who will be responsible for a massive pile of clay on the site, and the council to ask for financial security.

Timaru Mega Centre Limited Partnership lodged an application with the Timaru District Council to change the conditions of its consent for 233 Evans St, The Showgrounds, to allow for subdivision of the property on September 11.

In October 2019, the council-controlled organisation, Timaru District Holdings Limited, signed a Sale and Purchase Agreement with developer Tony Gapes for the 9.9ha of the 12ha site. The land, which was formerly occupied by the Timaru Showgrounds, was sold to Gapes for $6.4 million.

The original subdivision plans for the development were approved by the Timaru District Council under one scheme, which was given consent on December 11, 2020.

The developer of Timaru’s The Showgrounds retail centre wants to split the site into two stages so smaller lots can be be sold off.

JOHN BISSET/Stuff

The developer of Timaru’s The Showgrounds retail centre wants to split the site into two stages so smaller lots can be be sold off.

Since then, the developer has sought variations to its resource consent which have included the relocation of a food and beverage offering from the second to the first stage of the development, the addition of a second storey for a building which will now intrude into the 5m setback for Waka Kotahi’s road widening limit on SH1, and increased signage.

In the latest application, prepared by Barker and Associates’ Roxanne Dow, the developer now wants to split the entire development into two stages.

The first, which has largely been developed but includes some undeveloped lots, including one which borders Bridge Rd, and the second stage, which is undeveloped, has no direct access and has a mountain of excavated materials removed to make way for the developed parts of the first stage.

The second stage of The Showgrounds retail centre is now up in the air, with an application to split the development.

AIMAN AMERUL MUNER/Stuff

The second stage of The Showgrounds retail centre is now up in the air, with an application to split the development.

Documents released by the council show council staff met with representatives of the development twice to discuss the proposal prior to the application being lodged, with Dow noting that “overall, council was supportive of the application being split into two stages”.

However, planning consultant John Cook, of Christchurch-based Planning Solutions, raised a number of concerns over the application.

In correspondence to the council’s district planning manager, Hamish Barrell, Cook provided a brief synopsis of the application and his draft response said the initial approval “did not contemplate this overall development being undertaken in more than just the single stage”.

Bunnings is one of a handful of businesses trading from the new development which opened in March.

AIMAN AMERUL MUNER/Stuff

Bunnings is one of a handful of businesses trading from the new development which opened in March.

“This vacant area of land (that includes the large stockpile of excavated material) will remain totally undeveloped in respect of any servicing infrastructure and formed access.

“I understand that for financial reasons the applicant company is requiring that the new Records of Title be issued for all of Lots 1-9.”

On Thursday, Cook responded to Dow’s application seeking more information on seven key points.

Those included how a large pile of excavated material would be managed, and how infrastructure would be provided for the remaining lots.

“With the revised subdivision proposal for the intended Lots 5-9 to each have their own fee simple title, there is apparently nothing that would prevent any of these five titles being on-sold to another person/entity.

“Should such a situation arise where there could potentially be a number of new allotment owners, how would potential future management matters pertaining to this large material stockpile be dealt with as long as it continues to exist?”

The TImaru District Council wants an assurance the mountain of dirt will be removed at the site, and has suggested a financial bond such as a bank guarantee.

AIMAN AMERUL MUNER/Stuff

The TImaru District Council wants an assurance the mountain of dirt will be removed at the site, and has suggested a financial bond such as a bank guarantee.

He said the council was “seeking some form of financial assurance that there are provisions in place should the event occur that Timaru Mega Centre Limited Partnership is no longer the owner of the Stage 2 land”.

“As the stockpile of earth material arose due to the creation of the Stage 1 development, the TDC is seeking that some form of financial bond (say a bank guarantee) to be entered into with the TDC.”

Cook said there appeared to have been no consultation between the developer and the registered owner of the land, TDHL.

“There is nothing to indicate in the application AEE that any consultation has been undertaken with TDHL.”

He said on that basis no further council consideration could be undertaken until TDHL had given its affected persons consent.

The council had also asked the developer to provide the same consent from Waka Kotahi, noting the agency had a direct interest in the eventual upgrade of new intersections onto Evans St/SH1.

Countdown is one of the businesses which has opened in the first stage of The Showgrounds retail centre.

AIMAN AMERUL MUNER/Stuff

Countdown is one of the businesses which has opened in the first stage of The Showgrounds retail centre.

Cook said the current approval was for a single stage development and “all potential traffic scenarios have already been canvassed with the development approval based on this”.

A second stage had the “potential to introduce uncertainties associated with the preliminary new road intersection being to be upgraded,” he said.

Noting a “number of approved” consents from Environment Canterbury for the development, Cook said the council wanted an assurance the subdivision would not impact those.

“The TDC is seeking assurance, for example, that the continued existence of the larger earth stockpile is in accordance with any existing ECan consent approval.”

The developer was also proposing a new lot (Lot 3002, beside Taitarakihi Creek at the entrance to the centre). The lot was just 6m² and was not proposed to be vested in Stage 1 to “allow for necessary easements/covenants located over this area to be extinguished through approvals or court orders without delaying the 224c certification of Stage 1”.

The council had asked what those easements or covenants were, and for the developer to further explain the situation, and why it was seeking to add the word “general” to the subdivision conditions, saying no rationale had been provided for such an amendment.

Barrell confirmed the decision had been put on hold while the council awaited further information from the developer.