The slow pace to allow 4000 homes to be built on the outskirts of Tauranga is driving the commission "nuts" as it grapples with a housing shortage.

A plan to rezone rural land for the Tauriko West development - which will provide the 4000 houses - has been in the works since 2017.

And it could take a few more years for people to actually move in.

Tauranga City Council commissioners approved the plan change for public notification at a meeting on Monday. [SUBS 26/2]

Tauriko West runs from Belk Road in the Western Bay of Plenty alongside the Wairoa River to Cambridge Road.

Proposed Plan Change 33 seeks to rezone the majority of the 300 hectares from rural to medium density residential.

Commission chair Anne Tolley asked staff when the first houses might be available.

City planning and growth manager Andy Mead said 2027 was the council’s current thinking.

Commission chair Anne Tolley said an issue "driving the commission nuts" was the slow place to enable homes in Tauriko West. Photo: John Borren/SunLive.

Tolley said there were two issues "driving us [the commission] nuts”.

“[It’s] eight years work getting to here. We're here at the beginning of 2024, and we are looking at another two, three, four years before actual houses can be delivered, when we've got an acute housing shortage.

“The second issue that's also driving us crazy is the fact that this piece of land could deliver 4000 houses.”

Technical analysis showed only 2400 homes could be delivered because of issues with transport infrastructure and “perceived congestion”, said Tolley.

“The reality is the people are still coming, so they're still driving, they're still using the roads, but the technical work shows that we can't allow them to have houses there because the roads might be too congested.”

In response, Mead said: “In terms of getting houses there sooner, the real issue is that there's no infrastructure there at the moment.”

Water and roading infrastructure needed to be built and there was a procurement process underway to allow the work, he said.

Mead said he hoped construction would begin “very soon”, but it would take a “good couple of years” for the infrastructure to be built.

Tauranga City Council's draft land use plan for Tauriko West. Photo: TCC/Supplied.

The Government was looking at a fast-track consenting regime.

This could allow developers to apply for resource consents during the plan change process, rather than when it was completed, speeding up the delivery of homes, he said.

With transport and congestion issues preventing the delivery of 1600 home, it would be a “live issue” throughout the plan change, said Mead.

The State Highway 29 upgrade was needed to enable more homes and commercial land. If approved, it could unlock land for or 30,000 more homes and 11,500 jobs.

The businesses case for the $2.8 billion upgrade was endorsed by NZ Transport Agency Waka Kotahi (NZTA) board in August 2023.

The business case would be considered in the Government’s 2024-2027 National Land Transport Programme (NLTP), with the outcomes expected in mid-2024.

Upgrading SH29 would enable more homes to build in Tauriko West. Photo: John Borren/SunLive

“Hopefully the Government has provided greater commitment to the delivery of the long term transport upgrades through a favourable government policy statement,” said Mead.

“That could well provide us the opportunity to revise or amend or staging provisions, to lock in all 4000 homes.”

This would “play out” over the next three to six months, he said.

Tauriko West is part of Tauriko for Tomorrow – a project driven by Western Bay of Plenty District Council, Bay of Plenty Regional Council, Tauranga City Council and NZTA to cater for Tauranga and the sub-region’s population growth.

Government housing agency Kāinga Ora is one of the three Tauriko West land owners. It plans to build around 1000 homes on its 95.3 hectare parcel.

Classic Group and Tauriko Business Estate own the remaining land.

Plan Change 33 will be publicly notified for submissions in early March and an open day will be held on March 25.

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