Landowners of a major Pāpāmoa East development set to deliver 8000 new homes are urging Tauranga City Council to maintain momentum on infrastructure planning, warning that a transition to new planning laws could otherwise delay the project by up to a decade.
The development concerns Te Tumu, a 740-hectare block of coastal land situated between Pāpāmoa East and the Kaituna River. The area is earmarked to eventually accommodate more than 15,000 residents, playing a crucial role in addressing Tauranga's pressing housing shortage. However, the project has been plagued by significant delays stemming from infrastructure funding gaps and protracted court proceedings.
The latest challenge arises from the government’s decision to replace the Resource Management Act (RMA). In response, the government has ordered councils to halt most plan changes under the old system unless they receive a specific exemption. Tauranga City Council has decided against seeking an exemption for Te Tumu, opting instead to proceed under the incoming legislation after staff advised that an exemption could prove inefficient and risk needing substantial rework down the line.
Years of delays feared over legislative transition
While key landowners now agree with the council's strategy, they voiced serious concerns at a recent City Futures Committee meeting. Representatives for the major landholders, including Tumu Kaituna 14 Trust (TK14), Totara Farm Park Joint Venture, and Ford Land Company, stressed that critical infrastructure work must continue during the legislative shift to prevent disastrous delays.
Marcus Hinzack, head of strategic asset management and development for Ford Land, told the committee that the new Planning Bill, as currently drafted, could push the delivery of new homes back by seven to 10 years. He said this is because the bill prevents new plan changes from being notified until new regional spatial and land use plans are finalised, a process he anticipates will not be completed until 2029 at the earliest.
This process would be anticipated to be finished, best case, 2029, meaning 2031 operative zoning or beyond. It’ll be the difference between operability beyond 2031 or late 2020s, and not because of planning merit, but because of a system transition technicality.
Mr Hinzack argued that considerable spatial planning has already been completed for Te Tumu over many years. He advocated for this prior work to be formally recognised in the legislative transition to avoid what he called a "completely unnecessary delay". Essential infrastructure, such as the Kaituna Link connecting Te Tumu to State Highway 2, is vital to unlock the development. "This link is fundamental, and without it we’re constrained for years," he said.
A plea for 'planning horsepower'
Scott Adams, managing director of Carrus Properties, echoed these sentiments, stating that while landowners initially favoured the exemption route, they now see the new legislation as a potentially faster and simpler path. However, he emphasised that this relies on the council dedicating sufficient resources to the project.
"Te Tumu landowners agree with your staff members that TCC should not seek a plan change exemption and instead fully resource the structure planning programme, infrastructure planning, technical assessments, and tangata whenua engagement so Te Tumu becomes shovel-ready as soon as the new system takes effect," Mr Adams said.
He called on the council to "invest in the planning horsepower" required to maintain Te Tumu’s status as a priority growth area. A key hurdle is negotiating infrastructure corridor agreements with TK14, the Māori trust that owns the crucial block of land connecting the development to Pāpāmoa. Mr Adams noted that Carrus has already drafted a compensation arrangement with the trust, which he hopes the council will also agree to.
Mayor Mahé Drysdale, who is leading the negotiations, expressed confidence that the council and the trust would successfully reach an agreement.
Council and government weigh in
Council head of city planning and growth, Andy Mead, confirmed that significant structure planning work on the project would continue to ensure it is "ready to go" when the new system is active. He also noted that landowners could potentially pursue a private plan change or apply for consent under the Fast-Track Approvals Act to speed up progress.
However, Mr Mead suggested the Kaituna Link road was not strictly required to begin development, a point Pāpāmoa ward councillor Steve Morris said his community would dispute, given the potential for increased traffic on Te Okuroa Drive. Tauriko ward councillor Marten Rozeboom criticised what he saw as conflicting messages from the government. "We’ve got a minister who’s flat out bending council’s ear to enable housing growth, meanwhile his legislation and plan stop is putting the handbrake on things," he said.
The immense cost of infrastructure was highlighted by Housing Minister Chris Bishop as the project's main barrier. This issue is not unique to Te Tumu. In a separate but related example, the government's own housing agency, Kāinga Ora, is now preparing to sell a 95-hectare site in Tauriko West it purchased for $70.4 million in 2021. The agency has since scrapped its plan to build 1000 homes there, with one developer predicting Kāinga Ora will now lose money on the sale due to a fall in land values. The initial purchase was described by officials as "over market value" at the time, underscoring the high risks and costs associated with large-scale development in Tauranga. Similar challenges face coastal communities, where fishermen fear displacement from proposed underwater data centers.
Responding to criticism of the plan stop, Mr Bishop told Local Democracy Reporting that the measure prevents councils from wasting time and money on work that would need to be redone to comply with the new laws. "The Te Tumu development is not being held up by the plan stop or RMA reforms, there are pathways available to them," he said.
He concluded that the fundamental challenge lies with the project's inherent complexities and costs. "I understand the real barrier to getting shovels in the ground on this development is that Te Tumu requires expensive infrastructure solutions, including significant stormwater management issues affecting the wetlands and the local environment," Mr Bishop stated.
