A Tauranga hapū is disappointed that public land they wanted to buy for homes has instead been sold to a private developer.

The land known as Smiths Farm in Bethlehem was owned by Tauranga City Council and the $34 million sale to Venture Developments was announced on Wednesday.

A minimum of 307 homes would be built on the 41ha site with 21 of these affordable housing units.

Mana whenua Ngāi Tamarāwaho offered to purchase the land on commercial terms and build an affordable housing development in 2015 when the council decided to sell some of it.

In 2015, the council classified the land as a ‘Special Housing Area’ and issues around access and infrastructure meant nothing happened with it until 2022.

In December 2022, the council decided to reclassify Smiths Farm for strategic disposal. The classification removed the need to offer mana whenua first right of refusal.

Ngāi Tamarāwaho representative Buddy Mikaere said they were naturally disappointed by the sale as they had hoped to provide homes for the hapū on their whenua.

“We were the hapū that lost the most land [in Tauranga] because of the confiscations and it’s a position that we’ve never really fully recovered from.

“There was an opportunity to obtain some land and look at some housing options for the hapū.”

Ngāi Tamarāwaho offered to buy Smiths Farm in 2022 for its $27m valuation price, said Mikaere.

It wasn’t the first time the hapū had been unable to obtain land from the council, he said.

The hapū was promised land at Smiths Farm for a cultural centre, then in the Kopurererua Valley to make up for a loss of land when Takitimu Drive was built, but these offers were withdrawn, said Mikaere.

They were then offered land at Sulphur Point, but this was withdrawn because the land was wanted for a marine research centre, he said.

All of these areas are in Ngāi Tamarāwaho’s traditional whenua.

“We just get kicked around all over the place. It’s a trail of broken promises,” said Mikaere.

Tauranga City Council general manager strategy, growth and governance Christine Jones said the council undertook a competitive market sale process for Smiths Farm to ensure the strategic objectives of affordable housing and appropriate density of development would be met.

Ngāi Tamarāwaho was invited to participate in this market process, she said.

There had been ongoing discussions about establishing a cultural centre at both Smiths Farm and Kopurererua Valley, Jones said.

In 1991 a memorandum of understanding was entered into between the council and the hapū that the council would investigate opportunities for Ngāi Tamarāwaho to have a physical presence in the valley, but it was unsuitable because of flood risk, she said.

The council had engaged with Ngāi Tamarāwaho extensively over the years about Smiths Farm and the cultural centre and was committed to continuing this dialogue, Jones said.

It was unfortunate some projects could not proceed because of factors beyond the council’s control, like flood risk and site constraints, she said.

Mikaere said Venture Developments had contacted the hapū to see if they could work together a few months ago but they hadn’t heard anything since.

Venture Developments chief executive Jarod Thorpe said their initial conversation with Ngāi Tamarāwaho was positive and the company needed time to do its due diligence.

“Now we have the contract in place with Tauranga City Council we are keen to further our discussions with Ngāi Tamarāwaho and are interested in creating positive outcomes for their hapū.”

Thorpe said the initial works would begin soon and the first homes would be ready to live in by mid-2028.

The development was expected to be completed by 2031, but this was dependent on NZ Transport Agency Waka Kotahi finishing the access road from the new Takitimu Northern Link expressway, he said.

The affordable housing would be provided through a partnership with the Bay of Plenty Housing Equity Fund.

Mayor Mahé Drysdale said delivery of affordable housing was a critical outcome for the council.

The council committed $20m to the fund designed to support long-term housing affordability across the region.

Of the $20m, $5m was conditional on the delivery of affordable housing at Smiths Farm, Drysdale said.

The development would provide affordable housing and stimulate economic growth by creating construction jobs and related opportunities, while also improving the housing market’s overall health in Tauranga, he said.

“This development is expected to help mitigate the city’s housing crisis by offering diverse housing options that cater to various needs and price points.”

In 2022 the council entered into a joint ownership agreement with the Otamataha Trust, which represents mana whenua from Ngāi Tamarāwaho, Ngāti Tapu and Te Materāwaho, for land in the Tauranga CBD where a $306m civic precinct is being developed. It also gave the trust a section at 11 Mission St in 2020, to be leased to the Elms.

LDR is local body journalism co-funded by RNZ and NZ On Air.