The announcement bringing forward the $520 million Tauranga northern Link project may provide new possibilities for access to the Smith's Farm special housing area.

Construction of the TNL will begin in 2018, once detailed design and land purchases are completed.

Smith's Farm calls to be made next week.

The proposed TNL route runs through the lower undevelopable part of the Smith's Farm site, and timing of its construction would impact the sale/development of Smith's Farm as well as local road access requirements.

The New Zealand Transport Agency will be involved with the design and delivery of any local road access improvements that cross the TNL designation, and may contribute to funding these, says a Tauranga city Council staff report.

In addition, all the land designated for the TNL may not be required for the construction of the road, in which case the remaining land would be released back to Tauranga City Council.

Housing Minister Nick Smith approved the Smith's Farm special housing area on February 15 2016. To be able develop a site under the SHA legislation, resource consents need to be lodged by September 2016, when the Tauranga Housing Accord will be repealed.

Councillors put off making the decisions about the development in February to enable discussions with the NZTA around the timing of the TNL project – 6.8 kilometres of new state highway from Te Puna to the tolled section of Takitimu Drive in Tauranga.

With that sorted council can now choose whether Smith's Farm is going to be a suburban residential development or a rural residential development like the neighbouring Westridge Drive.

At next Tuesday's council meeting councillors will be asked to choose from three development options for Smith's Farm.

Option 1: Proceed with suburban residential development of the SHA, ahead of the development of the TNL, by progressing resource consenting to meet the September deadline.

The staff report states the pros are: receipt of funds from the sale/development of the site in 2016/17; contributes to accommodating the city's population growth.

Cons: potential lower value achieved for the property sale with development happening at the same time as the TNL is being constructed; complicates road access delivery; rules out using any land not required for the TNL.

Option 2 Align suburban residential development of the site with the completion of the TNL, potentially progress rural residential development of the buffer zone in the meantime.

Advantages are the cost benefits and coherent overall outcome from coordinating the delivery of both projects; NZTA support in road access delivery and funding; expected higher value achieved for the property sale; contributes to accommodating the city's population growth.

Cons: requires rezoning the relevant part of the site for suburban residential development in the City Plan; delays receipt of funds from the sale/development (could partly be offset by sale/development of the rural residential buffer zone).

Option 3: Proceed with rural residential development, access through Westridge Drive.

(This options was strongly objected to by Westridge Drive residents and the council agreed to rule out Westridge Drive for road access for a suburban residential development, and to require a buffer between Smiths Farm and the existing Westridge subdivision. This buffer would comprise of rural residential lots and stormwater reserve/ponds.)

Staff see the advantage of taking this choice as enabling the land sale/development to continue without delay; more immediate financial return.

Cons: lower land value, less development contribution revenue, less on-going rates revenue and less ability to accommodate the city's ongoing population growth; no NZTA funding for local road upgrades.

Staff are recommending adoption of Option 2.

• it responds to the relationship between the development of the Smiths Farm site and the TNL project;

• it is likely to result in the best long-term financial outcome for the Council;

• it is consistent with SmartGrowth principles e.g. compact city; and

• it would increase housing supply and provide more housing than the rural residential development option.

Council will in the future need to consider whether to sell the land to a developer, partner with a developer or undertake the development itself. This decision will not be made at the Council meeting on Tuesday.