Horizons Regional Council has decided to use three of its vacant lots in Palmerston North, with a combined property value of $3.5 million, as staff car parking.
By Rebecca Hogan of Local Democracy Reporting
In recent months, the council spent roughly $30,000 laying metal along the 2218sqm site and bringing it up to "car park standard" following the council's decision late last year to put building plans for the vacant lots on hold.
Michael McCartney, Horizons chief executive, said on-going local government reforms and growing uncertainty around the future of local governance meant the council wouldn’t progress plans at the site as it had intended to.
McCartney confirmed at the meeting on Tuesday that for the foreseeable future the Victoria Ave and Grey St sites would be car parking for regional council staff.
The site had sat untidy for too long, and it was "prudent" to get it up to standard so as it could be used for the mean time and potentially sold off, McCartney said.
The lot, with a combined value of $3.5m, needed to be understood as a small fraction of council’s entire portfolio – "not just a car park" – as it navigated times of uncertainty due to reforms, said McCartney.
MWRC Holdings Limited, a council controlled organisation, had purchased 7 Victoria Ave in 2021 for $1.1m, and in 2023 they purchased 3 Victoria Ave for $1.6m and 184 Grey St for $800,000, on behalf of Horizons.
McCartney told Local Democracy Reporting if the site next to Regional House were eventually sold it would expect to at least make back the total of what was spent purchasing the three properties.
In August 2025 the regional council voted to demolish the existing council building, Regional House, after a 2024 seismic assessment identified parts of the Victoria Ave building as being earthquake prone.
Safety measures had been installed at Regional House as a result, including enhanced seismic monitoring of the building and a text alert system which quickly notified staff of the status of the building after an earthquake, to ensure staff were safe before 2039 when the building was required to be vacated or demolished.
Parking and a lack of spots for those working, shopping or seeking health services and advice, had always been an issue along this populated stretch of Victoria Ave.
When Inland Revenue moved into the Te Ao Nu site next door to Regional House in 2019, also owned by Horizons, the public warned of growing congestion and limited parking.
These concerns proved to be true, however, the addition of specific Horizons car parking could offer more room for those in the city centre.
– LDR is local body journalism co-funded by RNZ and NZ On Air.
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