Concerns Sleepyhead development could become a 'slum' if houses don't sell
Wednesday, 16 September 2020
Ōhinewai locals fear a $1 billion Sleepyhead development could become a “slum” if houses there aren’t sold.
That’s according to Ōhinewai Area Committee member David Whyte, speaking to commissioners on the third day of a crucial rezoning hearing.
The massive industrial hub would transform the tiny settlement near Huntly with 1100 houses for Sleepyhead staff.
Whyte spoke for the committee of 11 Ōhinewai residents, who sought feedback from the community on the proposal.
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The committee accepts the Sleepyhead factory, as well as mixed development with commercial businesses and residential lifestyle blocks.
But it was “very concerned” about high density housing – particularly if houses were built and didn’t sell.
“In a company town, what happens if the company goes bankrupt?
“Obviously nobody from Ambury wants to go bankrupt, and we acknowledge they have been in business for a number of decades, but we all are aware that due to circumstances beyond anyone's control Ambury could find themselves going bankrupt, as Covid has shown.”
This happened to Huntly when Solid Energy went bankrupt, and the main employer in the town disappeared overnight, Whyte said.
The committee was concerned housing would then be sold off cheaply to receivers, leaving a “slum Ōhinewai”.
First home buyers may be more tempted to buy in Huntly, where some entry level homes were selling between $359,000 and $374,000.
Whyte also pointed to the nearby Lakeside development in Te Kauwhata, where 1600 homes are up for grabs.
Houses there were being sold around the $480,000 mark, Whyte said.
“Lakeside have pushed this very hard.
“Yet the sales there have been abysmal, really, really abysmal.”
Kāinga Ora have now bought 1300 of the 1600 houses, and the committee did not want to see the same thing happen in Ōhinewai.
“We are very aware that the closest model to what is being proposed has done particularly poorly.”
The committee questioned whether Sleepyhead's senior managers were moving to the development along with factory staff, and how new residents would deal with city to country “culture shock”.
“People are coming from the city with all the attractions, entertainment… to effectively nothing.”
Among mixed opinions, many Ōhinewai residents were keen for the café and service station that could come with the development, as well as pedestrian access across the busy interchange on State Highway 1.
Douglas Fairgray, who provided economic advice for Waikato District Council on the proposal, questioned whether it was necessary for the housing to be part of Sleepyhead's development.
He understood only a small portion of the housing would be economically affordable for Sleepyhead staff.
“Otherwise affordable seems to be houses priced lower than Auckland,” Fairgray said.
Fairgray also doubted how Ōhinewai would operate as a bigger town, separate from Huntly.
“The issue here is the proposed location for the town is relatively remote to where people from the town need to draw most of their goods and services.”
Commissioner Paul Cooney pushed back.
“Doesn't that result in hopping in the car five to ten minutes down to Huntly? From an economic perspective, what’s the problem with that?” Cooney asked.
“It comes back down to costs to households and the operation of those households. As people we have a finite time budget and a finite money budget,” Fairgray said.