Chamber leaders slam agencies' opposition to Sleepyhead's Ōhinewai development plans

Thursday, 8 July 2021

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

Business leaders have come out swinging against two agencies’ opposition to the $1 billion Sleepyhead development in north Waikato.

Waikato and Auckland chamber of commerce heads have criticised Waka Kotahi NZ Transport Agency and the Waikato Regional Council for lodging Environment Court appeals against the development.

Waikato Regional Council chairman Russ Rimmington rejects the idea that he’s delaying progress, saying he wants to make the development better.

Sleepyhead has appealed the decision to the Environment Court, citing minor corrections.

Sleepyhead plans to relocate out of Auckland, building a massive industrial hub and 1100 affordable homes for its staff.

The Detail podcast hears how decades after the last big company town was built, Kiwi bed manufacturer Sleepyhead is pouring new life into the concept.

* The Detail: Sleepyhead closer to its dream town but concerns remain

Waikato Chamber of Commerce executive director Don Good says agencies should not use public funds to delay a significant development in the region.

* Ticket to prosperity: Sleepyhead development holds promise for iwi, leaders say

Housing Minister Megan Woods has said the $1 billion Sleepyhead development in Ōhinewai has “significant strategic strengths”.

In May, a panel of independent commissioners decided in favour of rezoning the 176 hectares of farmland, but that decision now faces a delay in the latest appeals.

Waikato Chamber of Commerce chief executive Don Good said the regional council’s appeal looked like “nitpicking”.

“The business community has had a bit of a gutsful of councils using bureaucracy to slow progress down when we live in a country that needs housing, that needs infrastructure, and we needed it yesterday,” Good told Stuff.

Earthworks are under way at the Sleepyhead site in Ōhinewai. The company has to build up the ground by 4 metres as a flood risk measure, but the Waikato Regional Council says it still wants assurance that flood risks will be managed.

Good said public money shouldn’t be wasted on an appeal, and the council’s and Waka Kotahi’s concerns should have been dealt with in the eight-month commissioners’ process.

Housing Minister Megan Woods said the project had “significant strategic strengths” because of its location, housing outcomes and positive economic benefits for the people of Huntly.

Woods said that, as a Crown entity, Waka Kotahi made its own decisions on how best to achieve the Government’s objectives, but she hoped the key parties worked closely together to resolve issues “as quickly as possible”.

Auckland Business Chamber boss Michael Barnett said the Waikato council and Waka Kotahi appeared to be ignoring the minister’s view.

It “beggars belief” the organisations were throwing up obstacles and acting like “the opportunity police” to a project that has significant social outcomes, he said.

Waka Kotahi has lodged an appeal against the Sleepyhead decision, saying there needs to be better public transport links around the development.

“It seems to me that the council and transport agency should be saying, ‘How can we help this happen?’ rather than putting up barriers.”

The Environment Court process was “old fashioned”, lengthy and expensive, and the appeals could send the wrong message to other companies looking to do business in Waikato and the golden triangle, Barnett said.

But Rimmington denied that the council was deliberately delaying the project.

“Rather than getting into muck throwing, the chamber should look at what we’ve been charged to do, and that’s to create an environment for now and in the future.”

Rimmington said he hoped a solution could be worked out through a mediation process before reaching the Environment Court.

The council is appealing on four grounds: management of flood risks; public transport and car dependency; accessibility and urban form; and water and wastewater connections.

Waka Kotahi’s Waikato and Bay of Plenty director of regional relationships, David Spiers, recently said the appeal was a chance to ensure the housing development had enough public transport, infrastructure and services for the community, including shops, schools, health centres and open spaces.

Spiers said providing housing in Huntly and Te Kauwhata might “provide better outcomes for the region”.

Meanwhile, Sleepyhead itself is appealing to the Environment Court on minor grounds, according to the company’s planner.

John Olliver, a principal planner with engineering consultancy Bloxam, Burnett & Olliver, said an appeal had been filed to clear up minor errors and rewordings in the independent commissioners’ decision.

None of the fundamental policy decisions in the commissioners’ decision were being contested by the company.

“It’s quite common for parties to appeal complex subjects such as this.”

Olliver said appealing to the Environment Court was the most transparent and sure way to get the changes made.

Sleepyhead has been approached for comment.