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Lakeview Project On Hold

As was flagged in the Council’s 10-Year-Plan, adopted in June, the economic climate has seen the Lakeview project put on hold, Queenstown Lakes District Council chief executive Duncan Field said.

The longstanding project involves the development of Council-owned freehold land on Man Street in central Queenstown, formerly part of the Queenstown Campground.

“Over the past two years we have progressed this project and after an ‘expressions of interest’ process two development companies were short listed to prepare comprehensive development and financial proposals for the property,” Mr Field said.

That process resulted in confirmation by the Council in October 2008 that one of the two parties had been selected as the preferred participant.

“Unfortunately economic events overtook the process and the development company was not able to provide the financial covenants required by Council,” Mr Field said.

The company had accepted that the Council was free to terminate the ‘preferred participant’ status and this had now been done.

“Realistically, it is likely to be at the very least 12 months before any discernable change in market conditions would warrant a remarketing of the property,” Mr Field said.

However, should parties with the capacity to deliver the current design brief wish to talk to Council they would be welcome.

“Meanwhile we were able to recognise the situation and plan for it accordingly,” Mr Field said.

The issue was flagged in the recently adopted 10-Year-Plan as follows:

“Council has assumed that it will not receive any proceeds from the Lake View project (formerly Queenstown campground) during the next ten years because of the worsening global economic climate.”

ENDS

For further information please contact Duncan Field 03 441 0499.