Sleepyhead director says Auckland's time is over, but will he be let in the Waikato?

Friday, 2 July 2021

Sleepyhead co-director Craig Turner addressed the Waikato business community this week, saying Auckland was “an aggressive city”.

Auckland has “had its day” for business, says an industry titan, due to congestion, obstructive authorities and a stressful lifestyle.

But Craig Turner’s plan to expand his mattress empire into north Waikato is facing another roadblock after the Waikato Regional Council filed an Environment Court appeal against the company’s successful rezoning application.

The Sleepyhead co-director spoke to the Waikato Chamber of Commerce this week, saying he was “glad” to be getting out of the super-city.

Hitting “absolutely ugly” traffic at the top of the Bombay Hills into Waikato, Turner said he felt he was coming out of an “aggressive city, into a new world”.

An impression of Sleepyhead's massive industrial hub and housing community planned for Ohinewai.

He expected more people would move from Auckland to Waikato for a lifestyle change.

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“People know Auckland’s had its day, and really where else do you go?” Turner told the crowd gathered at Wintec.

Sleepyhead director Craig Turner said Auckland faced terrible congestion, and the city had had its day.”

The company wants to build a new industrial town in Ōhinewai, and plans to develop a massive manufacturing hub with 1100 affordable homes have recently passed a major planning hurdle.

Turner said expanding Sleepyhead in Auckland had become impossible, and he was consistently met with a series of “can’t dos” from authorities.

“We are glad to be getting out of Auckland, they’ve treated us badly.

“We’ve had a good time there over the years, but they don't want us there anymore, and they've made it very difficult for us.”

Waikato, by contrast, had everything going for it – its geographical position in the golden triangle, its people, and “its willingness to work”.

Waikato Regional Council chair Russ Rimmington said he did not want the Sleepyhead town to become another Pōkeno.

“Down here [in Waikato] you get a series of can dos.”

But on Friday, Waikato Regional Council revealed it would appeal the commissioners’ decision to grant the industrial, residential and commercial rezoning.

Council chairman Russ Rimmington told Stuff the appeal wasn’t a “delay tactic”.

The council was appealing on four grounds: management of flood risks, public transport, accessibility and water infrastructure.

Rimmington said he did not want the development to become another Pōkeno, suburban sprawl without community facilities.

“We want to make sure that good, urban planning prevails so that if sleepyhead moves it's not a city nobody wants to live in.”

He said he hoped the appeal wouldn’t go to the Environment Court, but would be resolved through a mediation process.

“I understand there’s a housing crisis, but what we don't want to see is hodge-podge of towns stringing up along our countryside.”

Earthworks have started in Ōhinewai. Turner said 3000 tonnes of rock were being carted to the site to build up the land from flood risk.

During his presentation, Turner said providing affordable houses to staff was a “major pillar” of the community he was designing.

The company needed to keep staff to maintain production at a global level, but was finding that difficult.

What was once a simple business model of “building beds and finding staff” no longer worked.

Many workers had nothing left from their pay packets and couldn't save for a home of their own, especially in Auckland.

“The people start with nothing, and they effectively go out with nothing – and that ladies and gentlemen, is socially unacceptable.”

Financial literacy was an issue, though Turner said he could not be seen to be controlling employees lives.

Turner said he was “personally driven” to find young, local people, particularly in Huntly, who wanted to work in trades.

He himself had been somewhat of a lost student, he told the Waikato audience, until an engineering teacher summoned him to his office one day.

He wanted to create a local trades training facility before major building in the development got underway.

The exact details of how the company's affordable home scheme will work are not clear; the company had been approached by Kainga Ora, and was also looking at a lease-to-own option.

Not every staff member at Sleepyhead would automatically get a home, and it wouldn't be based on how long people had been working at the company, Turner said.

“It could be based on attendance, their attitude at work.”

He wanted a maximum price of $500,000 for the houses, and was pushing back against those who said that was too expensive for the growing north Waikato area.

But currently, the homes won’t be built for another six to eight years, as a $70 to $100 million dollar upgrade of Huntly's wastewater treatment plant must be completed first.

Turner said over 3000 tonnes of rock was being carted to the Ōhinewai site each day, by 138 truck and trailer movements.

The company must build the land four metres up from its current level, to avoid flood-risk.

Earthworks have started on the company’s foam factory, though the resource consent for that is still under-consideration through the Government's Covid-19 fast-track consenting law.

“We haven’t worked out yet whether we will have a beautiful platform for a factory or a very expensive farm,”Turner said.