Coromandel golf club plans to sell land to build two dozen houses

Up to two dozen houses could be built on a Coromandel holiday hotspot’s golf course land in a bid to secure the future of its local club.

Pāuanui community members have overwhelmingly backed a long-term investment plan that will involve some land from the club’s two golf courses being sectioned off and sold for residential development, while retaining their respective nine-hole layouts.

Some 86.5% of members present for voting at a special general meeting of the club on May 30 were in favour of the proposal, exceeding the 75% threshold needed to give the board a mandate to proceed.

The proposal would eventually allow the creation of up to 20 residential sections by repurposing unused land across the Pines and Lakes golf courses.

Sale proceeds would be used to address longstanding maintenance problems, fund new projects and establish a capital fund to generate ongoing returns.

For a club that has been embedded within the community for much of its existence, the trade-off is seen as a strategic move to secure its future for decades to come.

Pictured is the planned subdivision for up to 10 residential lots on land at the eastern end of the Pines golf course.

Pāuanui was established in the late 1960s when the Hopper family bought land and began developing the peninsula through their company Pāuanui Ocean Beach Resort.

The Pāuanui Club was formed in the township’s early years, giving locals and visitors a place to gather.

It has remained the community’s sole sports, recreation and social hub since, filling the space usually served by a community hall.

In documents shared with members, the club said it had been operating at a cash flow deficit over the past eight years with losses totalling nearly $1 million.

Nearly 87% of Pāuanui Club's members backed the development proposal at a meeting in the town last month. Photo / 123rf

The costs of deferred maintenance work on the clubhouse, carpark and recreation hall had accumulated to more than $1m in the same period.

After years of financial difficulty, club president Bruce Patten said the proposal intends to ensure long-term financial security by investing in revenue-generating projects.

“We’re creating a capital fund that will return a revenue to the club every year, and allow it to continue to maintain its premises,” Patten told the Herald.

“In years where we don’t make a profit, it’ll help with any shortfall.”

Between $3m and $4m in sale proceeds is expected to be set aside to upgrade the club house, recreation hall and other facilities. Photo / Pāuanui Club

Club estimates indicate the subdivisions could return up to $10m in net sales.

Patten specified storage sheds and up to 12 residential cabins as one of its planned investments, spending $2m to fill the town’s “dramatic shortage” while producing a passive income for the club estimated to surpass $200,000 annually.

Between $3m and $4m will be set aside to upgrade the clubhouse and recreation hall, with at least $4m left over for a residual capital fund once projects are completed.

With an estimated 60% of the club’s members voting on the proposal, Patten said it was important as many people as possible understood what was at stake.

Renders of the upgraded recreation hall, expected to cost at least $1 million. Photo / Pāuanui Club

“You only have to look at all of these scenarios that are occurring right now.

“We’ve just had the Mount Maunganui RSA put their land up for sale, you’ve got Pegasus golf course being sold. We are trying to protect that.”

He said members were being referred to recent developments on land surrounding Ellerslie Racecourse as examples of what the club could do to ensure its ongoing viability.

“The type of money they got from that was just unbelievable ... It’s provided them a future that they wouldn’t have had otherwise.”

Fletcher Living's residential project, "The Hill", taking shape last year on former Ellerslie Racecourse land. Photo / Carson Bluck

Both nine-hole golf courses will remain in place, with the land reshaped to incorporate new residential space while maintaining their configurations largely as is.

“We got really good support from the golfers, because we were able to show them exactly what it meant,” Patten said.

The proposal now moves into detailed feasibility work and resource consent planning, with significant progress unlikely before next year.

Patten stressed members should not expect immediate changes, describing the project as a long-term process expected to take at least five years, but locals can still look forward to work beginning on the bowling club’s new artificial turf in August.

“This is a long-term plan that we don’t want to rush, that we don’t want to make any mistakes on.

“So we just need to take our time and get it right.”

Patten said the club’s board has committed to remaining in place throughout to provide continuity and see the plan through.