The Council's HIF proposal to develop Peacocke by providing strategic infrastructure (roads, water and wastewater pipes and a bridge) will be included in the draft 10-Year Plan.
What’s the proposal?
The Council are seeking $308.4 million from the HIF - comprising of $189.1M of 10-year interest free-loan and $119.3M of NZ Transport Agency subsidy - for the development of the Peacocke greenfield residential area.
If Hamilton builds a new bridge over the Waikato River, new roads and installs main pipes – there will be land ready for developers to build homes.
Peacocke has the long-term space needed, is close to the central city, and can provide broader transport benefits by working in conjunction with other projects including the Southern Links road network. There are also essential links to employment and education opportunities.
What are the next steps?
The draft 10-Year Plan will be open for public consultation in March/April 2018 and will include the opportunity for people to have their say on the HIF proposal. The Council's 10-Year Plan will be finalised in June 2018, with the HIF proposal also needing final approval from the Government next year. If the proposal makes it through those final two stages, it will then become binding.
Click here to download a copy of a one page summary of the Detailed Business Case. (PDF, 625KB)
Click here to download a copy of the Detailed Business Case's Executive Summary. (PDF, 1.16MB)
Here is a map of the Peacocke growth cell which shows, at a high level, the projects and their estimated cost (including inflation):
In October 2016, the Ministry of Business, Innovation and Employment announced a new $1B Housing Infrastructure Fund (HIF) available for high-growth Councils, including Hamilton.
These high-growth areas were invited to apply for a share of the 10-year interest-free fund to bring forward the transport and water infrastructure required for new housing.
In March 2017, Hamilton City Council submitted three proposals; one for Peacocke Growth Cell, one for Rotokauri Growth Cell and one including both growth cells.
In July 2017, Prime Minister and Ministers Steven Joyce and Nick Smith announce the allocation of the $1B fund. Hamilton, along with Auckland, Waikato, Tauranga and Queenstown all have projects progressing to the next stage of the process (detailed businesses cases).
Hamilton's successful project is for the city's southernmost growth cell Peacocke.
The detailed business case looks at the strategic, economic, commercial, financial and management aspects of developing the Peacocke growth area.
The financial case will thoroughly look into the effect the HIF will have on the Council's books and how the loan could be repaid, including any other, new or revised revenue options.
The Peacocke development will enable more than 3700 new houses over the next 10 years and 81 00 in 30 years. To enable these houses to be built, the Council needs to invest in strategic infrastructure (eg main roads and pipes) so developers can link subdivisions to that infrastructure.
The Council are also engaging with developers to have signed agreements confirming funding contributions towards the cost of the bridge, roads and pipes, and plans for delivering the housing end of the project.
If the detailed business case is accepted by the Council and Government, the changes won't happen overnight. It will still be around five years or more until all the pipes are in the ground and roads are ready, including the bridge.
The HIF isn't a one-stop solution to the city's growth challenges, it's an option that would work alongside other ways the Council is managing housing demand.
Initiatives outside the HIF, supporting growth, include the Housing Accord, Future Proof, District Plan zoning, the Regulatory Effectiveness and Efficiency Programme and being part of the Upper North Island Strategic Alliance.
For more information about the Housing Infrastructure Fund, click here to visit the Ministry of Business, Innovation and Employment's website.