Sanson property sold

A win for the village, the district and the region

The Council purchased the Sanson Hotel in 2008 for $590,000, recognising its importance as a strategic site key to the town’s development. Council looked at options for development, and an i-Site and accompanying commercial development looked promising.  However, the $2.6 million capital cost and associated commercial risk was not considered an appropriate investment for ratepayers given the current economic environment.

The development project was put on hold as part of the 2011/12 Annual plan.

Since that time there has been public interest and some criticism of the Council both for the initial investment in the site and the time taken to investigate options.

Manawatu District Council has agreed to sell the former Sanson Hotel site to Projex Developments. The sale price will remain confidential until matters of commercial sensitivity are completed.

Council met with community representatives in Sanson on Tuesday to ensure that they heard first-hand of this exciting opportunity for the town.

Concurrently, Council has, in its Long Term Plan, identified Sanson as the first town to benefit from a community planning programme. This community-council partnership will provide a process to agree priorities for Council investment in the town, and, importantly, boost community and civic pride.

Council believes this sale will benefit Sanson, the district and the region.

• Residents benefit from an enhanced local economy.
• Ratepayers benefit – the strategic investment has resulted in a profitable sale with private sector funding for the development bringing additional value.
• Businesses benefit from enhanced visitor potential.
• The region benefits by private sector investment at a key gateway.

 

A quality development will result from this sale – expressions of interest in the site have been signed with a number of well-respected New Zealand retail brands.

Q & A

What happens now?

Subject to matters within the development agreement being met, the developer will proceed with his plans. Council will ensure matters included in the development agreement – including provision of public toilets, allocation of space for an i-Site (should it proceed), and an upgrade of the appearance of the property and the adjacent playground – are reflected in work on the site.

What does this mean for the Sanson Sunday market?

Council is aware of the enthusiastic work that has gone into developing the Sunday market and recognises the role it plays in the community and for visitors. We hope an authentic, quality Sanson market can be developed in an alternative location.

What was the purchase price?

The sale price cannot be released at this point due to commercially sensitive matters.

Why wasn’t the community consulted?

Council wasn’t required to consult publically on the offer it received for this property. The commercial nature of the negotiations precluded them from doing so.

Council will however now work closely with the community on its planning project, and with the developer, to ensure good outcomes for Sanson, the district and the wider region.

When will we see activity on-site and how will this be communicated?

Council will work with the developer to finalise a timeline for development. This will be publicised through media including the Council’s Bulletin page and the Council website. The community committee will be kept informed.