24 June 2013

Tainui Group Holdings (TGH) and Chedworth Properties (CPL) announced today that they have lodged a Private Plan Change application with the Environmental Protection Authority (EPA) for the first part of the proposed Ruakura development.

For a Private Plan Change to be accepted for review by the EPA, the project must first be classified as a project of national significance. The EPA will make a recommendation to the Minister for the Environment on whether it is of national significance and if it should be referred to a Board of Inquiry. The Minister will make the final decision.

“We have always seen the Ruakura project as nationally significant with a Waikato focus. Our analysis shows that the economic contribution from Ruakura more than doubles the Benefit Cost Ratio for the Waikato Expressway and also supports the Kiwirail turnaround plan,” explained TGH CEO Mike Pohio. ”We expected to work through the local planning process but the Hamilton City Council’s recent refusal to process our request for a private plan change meant we needed to reconsider our approach.”

“Applying to the EPA was not a decision we made lightly,” explained Chedworth Properties Director Jon Webb. “It reflects not only our growing frustration with the delays but how important we know this project is for the Waikato region and beyond.”

“Detailed planning for the Ruakura project started about five years ago,” Mr Pohio said. “Since then, we have worked collaboratively with the Waikato Regional Council, Hamilton City Council, Waikato District Council and Futureproof Partnership. This work culminated with Ruakura being included in the Waikato Regional Policy Statement and the Hamilton City Council’s Proposed District Plan.

“The challenge now is that until the Hamilton City Council’s Proposed District Plan comes into force – a process that took 13 years the last time round – much of the land at Ruakura remains subject to restrictive provisions that prevents us from proceeding.

“We’ve looked carefully at the possible timeframes. If we do not achieve success via the EPA, we would not be able to apply for resource consents for years in a worst case scenario.

“We need to address the delays and uncertainty we have been dealing with, particularly this year,” Mr Pohio said. “Under the EPA’s board of inquiry process, we could possibly apply for resource consents mid 2014.

“The Board of Inquiry process is independent. Submissions will be called for and hearings will be held so it will be a very open, robust process which is important to everyone involved.

“The Ruakura development will bring tremendous benefits to Hamilton, the wider Waikato region and the country, but only if we’re able to proceed in a reasonable timeframe.”

Ruakura is located on the east side of Hamilton just under 3km from the city centre. It is unique in that it is equidistant from the Ports of Tauranga and Auckland, on a main trunk railway line and will be bordered by the Waikato Expressway.

The area covered by this Private Plan Change is roughly 380 hectares – substantially less than the over 800 hectares included in the Ruakura structure plan which is part of the Proposed District Plan. The Plan Change sought is however designed to be as consistent as possible with the HCC Proposed District Plan.
“There is no doubt in our minds this is a project of national significance. In addition to its unique location and scale and therefore ability to deal with the expected growth in freight, about 11,000 jobs will be created (directly and indirectly). Once completed, Ruakura-based business activity will inject some $4.4 billion into the Waikato Region’s GDP.

“The Waikato Expressway is the single biggest Government investment in our region for decades. If we take advantage of it, it will be an expressway for our growth. If we don’t, it’ll just be a bypass,” Mr Pohio said.

The Plan Change request submitted to the EPA addresses the policy framework needed to facilitate the initial stages of development at Ruakura in parallel with the provisions of the Proposed Hamilton City District Plan. The Plan Change sought is designed to be as consistent as possible with the Proposed Hamilton City District Plan. It also allows for particular planning rules needed for the Ruakura Specific Business zones and the residential zone.

“The key point being that if approved, this Plan Change will enable applications for resource consent to be lodged,” Mr Pohio explained.

“We know the details of the project needed to be properly vetted and reviewed. We are proud of the work we have done to get to this stage and we are eager to continue the process in a very open, robust manner. What we need now is the certainty of timeframe and process which the EPA gives us.”

ENDS

The Ruakura project - background information

Over time, the Ruakura project is expected to create a robust community providing work, live, play opportunities for thousands of Hamilton families. A master plan has been created covering all eventual land uses and stages. Development against that plan will occur in stages over some 30 to 50 years.
A proposed inland freight and logistics centre is the first stage of the project.
Ruakura is the best place for an inland freight centre. It is midway between the ports of Auckland and Tauranga, the Hamilton-Tauranga railway line runs through it and the proposed new Waikato expressway will be its eastern boundary.

It’s expected that strong economic growth in the Golden Triangle (the area bordered by Auckland, Hamilton, and Tauranga) will drive greater demand for freight transport. At present, around 65 percent of New Zealand’s freight is transported between Auckland, Hamilton, and Tauranga with this volume of freight forecast to double over the next 20 years.All of these factors are complemented by the fact that Tainui Group Holdings and its partners for the residential development, Chedworth Properties, hold much of the 820 hectares earmarked for development. This allows them to take a master-plan approach, ensuring sustainable development of the project.

In addition to the freight and logistics hub, the master plan includes an innovation precinct to enhance the existing AgResearch, University of Waikato and Innovation Park. The wider development also includes retail, industrial, employment and residential development. In total six zones will be developed over a span of up to 50 years.

Benefits - summary

• It’s expected that when the full plan has been implemented, Ruakura will:
o more than double the Benefit Cost Ratio for the Waikato Expressway
o support the Kiwirail turnaround plan
o provide about 11,000 full time jobs (direct and indirect), about 75 percent of which would be new to the region
o attract an investment of $3 billion into the region
o increase the Gross Regional Product for the Waikato Region by $4.4 billion

• The investment by TGH at Ruakura will be another high quality development, the same as has been demonstrated with The Base and the Novotel Auckland Airport.
• Once the inland port starts to move freight between road and rail, it’s expected that there could be a reduction of about 6,000 less road trips per year. This translates to a reduction of over 1 million kilometres travelled.
• The planned inland port and freight centre will also mean fewer trucks on the road as the use of rail in and out of Ruakura increases over time. This could result in a reduction of around 630 tonnes of carbon emissions.
• Ruakura will also help address the employment imbalance in Hamilton where just 22 percent of jobs in Hamilton City are located on the east side of the Waikato River, despite most people living on the east side of the river. This creates significant congestion issues for the city at peak travel times, particularly on cross-city bridges.
• Locating employment opportunities near where people live will help the city achieve the ‘live-work-play’ philosophy espoused by Future Proof and the Hamilton City Urban Growth Strategy and delay the need to invest in new infrastructure like additional bridges.

• Expert acoustic engineers have looked at potential noise levels and effects. Their modelling indicates that most noise will be contained within the immediate inland port and freight hub. In terms of ‘light leakage’, the latest LED lighting technology will be used to minimise any potential issue. High quality landscaping will also be used to prevent direct glare to the surrounding area. This ensures that TGH will comply with all of the relevant regulations and deal with perceptions of excess noise and light.

• Environmental impacts are a key consideration and low impact design principles will be incorporated into the detailed design. Plans include a state of the art wetland system which will manage water flow and significantly improve the quality of water leaving the Ruakura area.

Tainui Group Holdings Ltd – background information

Tainui Group Holdings is the commercial arm of the Waikato-Tainui people.

Our core business is property investment and development. Our strategy is to identify and grow high quality assets, and generate income from them. With this income we aim to provide consistent, long-term dividends to current and future generations of Waikato-Tainui.

TGH has completed a number of successful projects including The Base regional retail centre at Te Rapa – the country’s largest retail shopping centre and the Novotel Auckland Airport Hotel.

We are a substantial New Zealand-owned company, and will remain so. All our income and dividends are reinvested in New Zealand.

Chedworth Properties –background information

Chedworth Properties Ltd is a Subsidiary of Chedworth Park Ltd and run by Jon and Simon Webb who together bring many years of experience in property development. In fact, the company has been involved in property development since the 1960s. To date, Chedworth has developed about 5000 sections in and around Hamilton.

Recent Chedworth Property developments include Fairview Downs, St James, Sherwood Park and Horsham Estate. The final stage of Horsham Estate in Rototuna was released in late 2012 and sold out in just a few hours.

Chedworth is committed to developing subdivisions that are of the highest standard. About 2200 homes are planned for the Ruakura area which will be built to medium density, with plenty of open space and recreational areas. This approach offers more choice and affordability which is designed to help meet some of the growing housing challenges facing Hamilton City.

ENDS