The ribbon has officially been cut to mark the start of Omokoroa's special housing area.

On Friday afternoon a small group of guests launched the joint venture housing project between Western Bay of Plenty District Council and development company Classic Group.

Western Bay Mayor Garry Webber says this flagship development will be positive for the community and gives the development community as a whole the confidence to continue expanding in Omokoroa.

Three properties make up the SHA area – purchased by Council in 2000, 2007 and 2016.

'It will also be positive for our ratepayers across the district, as the financial contribution income we receive will be used to pay down the debt incurred when council bought those properties,” says Garry.

The joint venture with Classic Group will ensure council has continuous input and oversight from the start of development through to the final house and land packages that go on the market.

Garry says this holistic approach to creating a flagship development will result in the creation of a really attractive subdivision that blends well into the local residential environment.

'We have every confidence in our partnership with the Classic Group and are really proud to be creating a development that will be the envy of many other councils in New Zealand.”

Peter Cooney says its's commendable council has taken the opportunity to enter into a joint venture to enable first and second home buyers to enter the market at a price they can afford.

But he says there is no silver bullet to affordable housing and no developer or council can solve the problem on their own.

'All parties must get together to come up with the solution. If a council has the land and is interested in entering a joint venture to create affordable housing and get a return for their ratepayers, this is the way to do it.

'To get better priced homes we have to change the way we do things. I commend this council for recognising the issue and taking this opportunity so that first and second home owners can get onto the property ladder. I wish more councils would do the same.''

Omokoroa's SHA will be a staged development with the first stage comprising of 31 lots and the remaining stages being developed as the market dictates. Ultimately the SHA will include about 240 dwellings, 50 percent of which will be below the average median house price in the Western Bay.

Engineering and planning staff from council have been working alongside the Classic Group to develop continuity of house design and landscaping.

The 19.5hectare council-owned site on Omokoroa Road is bounded to the north by the main railway line between Tauranga and Hamilton and includes land adjacent to Settlers Hall.

About half the area is suitable for houses with the balance made up of gullies that will provide a permanent green belt for walking tracks, stormwater management and recreational opportunities.

Omokoroa is the first area in the Western Bay designated as a SHA under the Housing Accord signed between council and Central Government last year.

Under the Accord criteria there is flexibility for both council and the developer to vary compliance with District Plan requirements and to have more flexible resource consenting powers.

The Accord allows council to go outside of its zoning requirements as is the case at Omokoroa where the former commercial zone has been varied to a medium density residential zone.

The development meets a social responsibility to provide affordable housing and also ensures council gets a good return on its land holdings.

Kiwi-owned and operated, the Classic Group consists of Classic Builders, CBC Construction and Classic Developments.

The company has developed SHAs in Queenstown and Auckland and is the largest residential house builder in the Bay of Plenty, and fourth largest in the country.

Earthworks will start on the housing project this construction season and the upgrading of Omokoroa Road adjacent to the site is also starting to facilitate both the SHA and other development in Omokoroa.