Billion-dollar Sleepyhead development gets the go-ahead

Monday, 24 May 2021

An impression of Sleepyhead’s massive industrial hub and housing community that is planned for Ōhinewai.

Independent commissioners have approved a billion-dollar industrial and housing development in north Waikato.

But leaders in two major Waikato organisations are not ruling out an appeal to the Environment Court.

Sleepyhead intends to create a large manufacturing and housing community in Ōhinewai, potentially bringing 2600 jobs and 1100 homes for 3000 people.

A panel of commissioners has given Sleepyhead the green light to turn the 178 hectares of rural land there into industrial, commercial and residential land.

Ohinewai in the North Waikato is set to become where Sleepyhead plans to build a massive facility which also includes affordable housing for their staff (This video was first published in November, 2019).

Waikato district mayor Allan Sanson said “the biggest card had been played” in favour of the project.

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“The biggest card has been played in favour of the development,” Waikato district mayor Allan Sanson said.

“Everything else pivots off this decision,” Sanson said.

The development would be a “game-changer” for the communities of Ōhinewai and Huntly, as well as the whole Waikato region, Sanson said.

He expected there would be significant employment opportunities for those living in Huntly, as well as people travelling from Waipā on the expressway, or half an hour away in Paeroa.

“It will bring jobs, revitalise the northern Waikato with affordable new housing, and encourage other commercial investment in the area.”

Huntly residents and marae leaders have previously said the employment opportunities could be a ticket to prosperity for north Waikato people.

Sleepyhead director Craig Turner said that if a resource consent was approved, building could get under way by February 2022 at the Ōhinewai site.

The district, jammed between Hamilton and Auckland, was under “huge pressure” to supply affordable housing, Sanson said.

Information from the Real Estate Institute of New Zealand (REINZ) shows house prices in Huntly have risen 72.4 per cent in the past year, increasing from a median price of $290,000 in April 2020 to $500,000 in April 2021.

Sleepyhead director Craig Turner told Stuff the company was working with Kāinga Ora on a way to create affordable residential homes on the site.

“We are still trying to make $500,000 the top number for the homes.

“We have got to get there because our people can't afford more than that.”

Waikato Regional Council chairman Russ Rimmington said he was “staggered” by a key rezoning decision giving the green light for a major development in Ōhinewai.

But the construction of the foam factory – eventually bringing 100 jobs – would come first and could start as early as February 2022.

That is currently being considered under the Government’s Covid-19 fast-tracking consenting law.

Turner said the decision was a “major milestone” for the project.

Waikato-Tainui general manager of development and wellbeing Marae Tukere said the iwi would need to read the full rezoning decision before deciding whether to appeal.

“It is a good decision, it's a 100-page decision, which shows it has been well considered and well thought through.”

The panel of independent commissioners – Dr Phil Mitchell, Paul Cooney, Dynes Fulton and Weo Maag – approved the full rezoning for industrial, business and residential precincts.

Ōhinewai in the north Waikato is a small settlement that may be transformed if a massive Sleepyhead development goes ahead.

In their report, the commissioners said Sleepyhead’s proposal would provide significant “economic, social and employment benefits to the Huntly/Ōhinewai area and the wider Waikato region”.

The development could contribute an estimated $200 million per year to the local economy.

They also criticised opposition from both Waka Kotahi NZTA and Waikato Regional Council for being two public organisations that “took entrenched positions” on the development under a “doctrinaire approach”.

But Waikato Regional Council chairman Russ Rimmington told Stuff he was “staggered” by the commissioners’ conclusion.

While he supported the industrial site, he maintained housing should not be placed in Ōhinewai on flood-prone land, where there was no adequate infrastructure.

“We as a council have to look at this decision very carefully, we need to ask if there are grounds for appeal, there may not be.”

Waikato-Tainui general manager of development and wellbeing Marae Tukere said they would also have to read the full decision before deciding whether to appeal.

Tukere said Waikato-Tainui supported the industrial site but had environmental and wastewater concerns about the housing.

Waikato-Tainui had been “very clear” with the council about whether it had capacity to support the wastewater treatment there.

Sanson said the residential land zoning had been allowed by commissioners but came with significant wastewater conditions attached.

The council must operate a wastewater system for the development.

“This is in line with what we expected … [major wastewater infrastructure] has to happen in the district regardless of Sleepyhead.”

If the zoning decision is confirmed after the appeals period, Ambury Properties (Sleepyhead's property arm) will still have to apply for a number of land use and subdivision consents to carry out the planned development, some of which are being progressed under the fast-track process.