Heritage buildings at a council-owned site in Whanganui will be demolished and the cleared site leased long-term to a local health provider.
Whanganui District Council voted 9-4 this week to lease the former St George’s School site to iwi-governed Te Oranganui Trust.
Mayor Andrew Tripe said the decision supported Te Oranganui’s vision for a community-focused health and wellbeing campus.
“This is a community organisation with deep roots in our district. By supporting this partnership, we’re making a strong statement – that public land should be used to advance public good.”
The decision follows community engagement and an assessment of risks and opportunities for the site at 125 Grey Street.
Tripe said the decision balanced community priorities and sound financial stewardship, along with respect for Whanganui’s heritage.
“We heard strong arguments to retain the heritage buildings.
“We also had Te Oranganui present a compelling case for a future that supports our community’s health and wellbeing and we are confident this will deliver long-term benefits for Whanganui.”
The council had not heard any other commercially viable options for the site, Tripe said.
There were more than 800 responses to a council survey on the future of the site, with 51% supporting deconstructing the buildings and leasing the site to a private developer.
The council would pay the estimated $1.25 million for deconstruction from its property endowment fund, meaning ratepayers would not foot the bill.
The council agreed to “a sensitive deconstruction”.
“Our approach … respects the heritage value of the site by allowing for careful deconstruction, recovery of materials, and heritage-sensitive design in future development.
“It’s not just about removing buildings – it’s about making space for something new that honours the legacy of the site while creating services that will support people and whānau for generations to come.”
The school’s original buildings went up in 1927 but most of the buildings on the site are earthquake-prone and contaminated with asbestos, according to council reports.
As part of the lease, the newer administration building facing Grey Street will remain, along with the YMCA Early Childhood Centre with access from London Street, while the older surrounding buildings will be deconstructed.
Tripe said it was “a tough decision” but there were no clear plans for future use of the heritage buildings. Bringing the site up to safe, usable standards would have cost more than $12 million.
The Grey Street property was home to St George’s School from 1927 until the school moved to the Whanganui Collegiate School campus.
The site was bought from the YMCA in 2019 by the council’s commercial arm, Whanganui District Council Holdings, as an investment. Between 2019 and 2021, it was used by the New Zealand International Commercial Pilots Academy, which proposed expanding aviation-related facilities prior to the COVID-19 pandemic.
The council formally purchased the site from its holdings company in 2023. Transitional housing was initially considered for the property, but that proposal was withdrawn after strong neighbourhood opposition.
Two buildings are currently leased by the YMCA, but most of the site sits unused. It currently returns a net annual loss of $49,000.
The council estimated the long-term lease would deliver a net benefit of $109,000 annually.
Te Oranganui is expected to move in by the end of 2027.
LDR is local body journalism co-funded by RNZ and NZ On Air