Resource consent to create 43 residential lots on part of the former Paeroa Racecourse has been granted.

The consent is for approximately three hectares of land at the corner of Thames Road and Raroa Road already zoned Residential, which allows it to be subdivided and developed without a plan change application.

Sections vary in size from 451m2 to 855m2, with access off Raroa Road. The Thames/Raroa Road intersection will be upgraded as part of the development and a pedestrian refuge island will be installed on Thames Road.

The developer will also make a financial contribution towards the cost of upgrading and extending footpaths in the area.

Hauraki District Mayor John Tregidga says the subdivision is timely given recent growth in the district and a shortage of housing in Paeroa.

'Statistics for the period ending March 31 show our GDP growth is tracking at 5.5 per cent, and the number of residential building consents in Hauraki has increased by 68 per cent compared with the same period a year ago.

'That compares with national GDP growth of 2.9 per cent and a 10 per cent national increase in residential building consents, so we're experiencing some significant growth.”

A separate plan change application would need to be prepared to change the remaining Reserve (Active) zoned part of the racecourse to a different zone, in order to allow for residential development.

The council has not yet received an application for this. Once an application is received, there will be a legal process to follow which will allow members of the public to submit comments on the proposed plan change. This will be advertised in local newspapers and on the Hauraki District Council website.