Millbrook Resort’s expansion onto an adjoining farm might cost $50 million.
The Arrowtown golf and spa resort bought the neighbouring 66ha Dalgleish Farm, on Malaghans Road, in the hopes of building a further nine golf holes and 49 homes.
The purchase was approved by the Overseas Investment Office
Millbrook, which co-hosted the New Zealand Golf Open in March, already has a 27-hole operation.
Bean counters estimate having two 18-hole courses would double the resort’s capacity, resulting in another 12,400 rounds of golf being played.
That feeds nicely into the Government’s $2 million international golf tourism strategy, which aims to increase annual expenditure by international golf tourists from $145 million to $223 million within three years.
Public consultation was held earlier this year on proposals to rezone the 66ha block from rural-general to Millbrook Resort zone.
QLDC has given the plan a cautious tick.
A report to Thursday’s full council meeting recommends the council accepts the proposal – while noting it will have to give final approval before it is publicly notified in the district plan review’s first stage.
Millbrook Country Club paid Insight Economics for an analysis of its development options at Dalgleish Farm – a report which has been provided to Queenstown’s council.
The report reveals Millbrook wants to spend $10.6 million on course design and construction and $39.4 million on the associated housing development.
Three-quarters of the course costs would be spent on physical construction.
Dalgleish Farm’s residential development costs include $16.3 million on land development and $15 million on building houses.
Of the 49 lots proposed, 39 would be sold as land only and 10 as a land and dwelling package.
The estimated build cost for each Millbrook dwelling is $1.5 million.
Millbrook membership applications cost $20,000, with annual fees of $2800.
Estimated annual rental income from cottages is $19,500.
The Insight Economics report says the development, if allowed, would give a one-off $21.2 million boost to the Queenstown region’s GDP – creating an estimated 525 full-time jobs for one year.
The ongoing economic spin-offs of the development were estimated to bring in 8800 guest nights to the region, 55% of them staying at Millbrook itself, and extra spending of $3.9 million a year.
Millbrook is expected to spend $1.3 million on design and plan change costs for the development.
If Millbrook gets approval for its Dalgleish development, grazing would continue on parts of the farm and some land would be retired for conservation purposes.
Also, a 2ha block that cannot be built on might be sold.
Otago Daily Times