Property developers in Te Awamutu, Kihikihi and Pirongia will be unable to obtain new water connection consents for at least three years.
By Jordan Smith of Local Democracy Reporting
It follows the closure of Te Tahi water treatment plant after suffering extensive damage in February's weather event described as a "one in 250-year storm event" by Waipā mayor Mike Pettit.
Any pre-approved consent will be able to go ahead as planned, but all current and future applications will be subjected to the delay.
Founder of 'The Property Development Club' John Kenel is one of the developers affected, taking to social media after his planner and a fellow developer received updates from council about their applications.
The update identified how storm damage "results in applications for water connections not being able to be made until three years from date of decision or any earlier time determined by Council's Team Leader - Development Engineer".
Additionally, the damage to Te Tahi is considered a "medium-term issue" by council, meaning it is within a three to ten year timeframe, the update added.
"At this point you go 's**t' because you're all good to go but I can't do anything with it and council are saying that three years was a minimum... so it could be longer," Kenel said.
He pointed out how re-investment into the district hasn't matched growth, saying one weather event shouldn't set back a district for years to come. The result, he said, has come at a "human cost" such as small developers who can't afford to sit on land for years.
"There are families who planned on buying those and they can't... you've got to turn around and go 'stop, nothing happened'.
"Tradies are already struggling. Construction I think employs something like 10% of the New Zealand workforce... if you just stop all the work, what do they do? They go to Aussie and the South Island."
Responding to these claims, Pettit said the lengthy delay is "unacceptable", and noted the implications for developers, businesses and the district's growth projections.
However, he added the completion of the Parallel Road water treatment plant in 2021 is proof council has "invested well into the area".
The plant will begin to supply the three towns with three megalitres (three million litres) a day in September, taking the total amount "very close" to pre-closure levels.
"It's the reason we are still delivering water and can deliver more," Pettit said.
"I understand and I empathise with all those who are developing. The three year clause is there but it's about working together."
Kenel fears the delay will stunt the growth in one of New Zealand's most promising regions.
"You're talking about a rapidly growing area of the country, this whole golden triangle [of] Tauranga, Hamilton, Auckland and then the surrounding towns.
"If you lock up big areas of it for three to ten years, what's the cost of that? You can't get that time back."
Pettit said there are currently 737 water consents in the system that were approved pre-delay, adding how any long term solution will be in the hands of Waikato Waters, who will take all water responsibility in Waipā from July 1.
No restoration cost could be provided, but insurance figures for Te Tahi "were between 15 and 20 million".
"That money will go to Waikato Waters and they'll have to come up with a remedy to build it back better or come up with alternatives to fill that gap."
In a statement, a Waikato Waters spokesperson said they "welcome more detailed briefings from council" as the transition date looms near.
"At this stage, responsibility for the infrastructure remains with the council and we are not in a position to provide timelines or cost estimates for future repairs."
Local Democracy Reporting is local-body journalism co-funded by RNZ and NZ On Air.
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