Lakeview Te Taumata

My take on the Lakeview development and what it means for Queenstown

Lakeview Te Taumata is set to become one of the most significant projects our town has ever seen. In the next 10-15 years, the 10-hectare site off Man Street will transform into a new neighbourhood, featuring apartments, hotels, retail and dining spaces, and a proposed hot pool facility. 

Because Lakeview sits on council-owned land, public investment is on the line and public interest is high. I know that people have questions about how the deal was done and what the risks and benefits are. The key thing to understand is that the agreement for this project was done back in 2018, long before I became a councillor or Mayor. My view is that we must move forward and focus on making the most of the project so that it benefits the entire community.  

The developer is responsible for delivering the vertical infrastructure stages of Lakeview, with specific milestones required to advance the project. This staged approach is intended to safeguard our financial investment, rather than committing all resources at once. Progress on Lakeview has faced several challenges, including the impacts of COVID-19, increased interest rates, and related delays. Despite these obstacles, work on the project has continued. 

Where we’re at with Lakeview 

• To date, the Council has invested $66 million, with a further forecasted $6 million to complete. 

• The land sales and development contributions will cover this expenditure.  

• The publicly available council papers forecast a profit of $25 million, without accounting for any "super profit" payment or sale of the 1ha Lynch Block. 

What about super profits? 

The agreement for Lakeview includes a profit-sharing clause. Under this arrangement, if the development generates profits above the original forecast (sometimes referred to as “super profits”), QLDC is entitled to receive 50% of these additional earnings. If the project only meets its initial financial targets, the Council will receive standard payments for the land.  

This model is intended to ensure that, should the development outperform expectations, there is a mechanism in place for Council to benefit from the market uplift. So far, there have been over $150 million in pre-sales achieved, giving us plenty of reason to have confidence in the project. 

Finding community benefits 

Beyond the financial outcomes, the development has the potential to deliver significant community benefits, including increased housing options, job opportunities and added activity in Queenstown’s CBD. The project will feature mixed-use commercial spaces on the ground floors, such as restaurants and health or medical facilities, with a range of housing types within the apartment buildings above.   

I hear the concerns from the community about why we would pursue a project like this when we are already tackling insufficient affordable housing and pressure on local infrastructure, particularly in the CBD. The project’s financial structure, which returns a portion of any profits exceeding initial forecasts to QLDC, can help us address these ongoing challenges. The long-term benefit to the community will depend on the eventual financial performance of the development, but there is potential for something big here.  

Keep moving forward 

Debating whether the Lakeview project should or should not go ahead does not achieve much. While I wasn’t involved in those original decisions, as a member of Council, I now have a responsibility to act in good faith with our partner. We must work within the framework that’s already set. 

Walking away from this contract without valid legal reasons would be more than risky, it would be expensive. Exiting now means facing penalties and a long list of legal expenses. The Council is obligated to proceed according to the terms of the existing contract to avoid unnecessary financial loss. 

So we move forward. The council’s responsibility is to monitor the project’s progress and ensure compliance with the agreement. My aim is to guide Lakeview toward the best possible outcome for Queenstown.  

You can read more about Lakeview here.  
https://www.qldc.govt.nz/your-council/major-projects/lakeview-development/