The Queenstown Lakes District Council has invited proposals from national and local real estate companies to market key sites in the first stage of the Lake View Project.

The development of the 4.03ha Council owned freehold property, west of the Queenstown Lake View Holiday Park, was approved in April 2004. Stage 1, which is part of a site previously used by the Queenstown Motor Park, includes three lots varying in size from 2000sqm to 5300sqm and totalling 1.21ha.

"The Council intends to market the sites as leasehold rather than freehold," said QLDC Finance Committee Chairman Rick Pettit. "The high density zoned land will be leased on a long term terminating tenure which will probably be around 90 to120 years."

"This means buyers can be confident that their properties are able to be passed on through the generations. The land can also be sold so really it is not too different from freehold."

Proposals have to be lodged with the Council by Friday May 6 and a sole agency is required for the project.

"What we are looking for is a company with both local and international connections," said Councillor Pettit. "It may be that two companies decide to put in a proposal to work together, with one acting as master agent and the other as sub agent. We would be quite happy to accept that situation if it works to everyone's advantage."

The sites, which front on to Thompson Street, will either be sold as one lot or to three separate purchasers.

The Council's development framework study is the basis for the Lake View Project and Councillor Pettit said the Council does not intend to develop the property itself.

"The sites are to be marketed to potential developers who will be required to submit a concept design, which is consistent with the development framework study and thedesign rules and guidelines, which have been established for the site."

The Council's preferred option is for apartment accommodation, catering for approximately 350 units in a complex with three storeys on the front boundary, and a maximum of six at the rear. A dozen terrace houses and significant open spaces are also recommended as part of the overall development.

Cr Pettit said the Council's assessment of concept plans from developers will be based on a combination of design and price.

"We will be looking for a quality project for this significant location and it will not just be price driven. The elevated site has excellent views, is very close to downtown Queenstown and deserves a superior development."

The long term terminating leasehold tenure system is relatively new to Queenstown but has been implemented successfully elsewhere, particularly in Auckland in the high profile Viaduct Basin, where apartments in the area have been sold on a long term leasehold basis.

"While the system means the Council will not get as much money up front, as it would with a freehold sale, we will be able to share in the continuing appreciation of the value of these properties into the future," said Cr Pettit. "There will be rent reviews every five years or so and we will keep abreast of growth in the property values."

"There will be advantages for the community and the Council sees the leasehold option as an investment for future generations in Queenstown."

For Further Information: Councillor Rick Pettit 0274362379 or Project Manager Ken Gousmett 0272296012

By: Tamah