Local companies to be awarded contracts for Reefton Campground accommodation works

Buller District Council (BDC) confirmed South Peak Homes as its preferred supplier for construction of new accommodation units at Reefton Campground during the Extraordinary Council meeting held on 9 April.

Group Manager Corporate Services Paul Numan says: “The new units form a key component of the Reefton Campground Accommodation Project, an initiative that aims to address the critical accommodation shortages in Reefton, which have resulted from rapid growth in the local mining, tourism and service sectors.”

Ten accommodation units, configured as four semi-detached cabins and two separate accessible cabins will be built at the Reefton Campground, which sits within the Reefton Recreation Reserve.

Initial project funding of $300,000 was received through Crown Infrastructure Partners Better Off Funding and approved by BDC to cover planning, design, project management, legal advice, consenting and preliminary civil works.

During the planning process, the project team agreed that once full costs were known, council approval would be sought for funding. BDC staff conducted a tender process for the construction of the cabins, site preparation and infrastructure work. The total budget for the project, including contingencies is $1,717,203.

Council approved funding from the following sources during the 9 April meeting: Federation Mining has agreed to contribute $100,000 as a legacy payment towards the cost of construction, and an advance payment toward a licence to occupy the cabins of $250,000; a loan from Development West Coast has been approved for $700,000; a contribution of $30,000 has been approved from BDC’s Infrastructure Services to manage stormwater runoff from neighbouring streets which will drain into the new soak pit being constructed for the project; and up to $338,000 has been approved from the Amenities Reserve Fund.

BDC’s Amenities Reserve Fund provision will be in the form of a loan to the project, and will be paid back in full, with interest. This will be repaid from campground income. The project will not be dependent on any additional ratepayer funding.

Federation Mining Vice President Simon Delander says: “Federation Mining is pleased that this public and private partnership project is proceeding, we wanted to ensure that West Coast businesses had the opportunity to construct and then operate these accommodation units.
This project will create a legacy contribution to the Reefton community, which will increase the overall visitor accommodation capacity for the town. We look forward to construction getting underway.”

South Peak Homes will construct the cabins off-site, with an estimated project completion date of the end of July 2025. In another boost for the Buller economy, WestReef Services Ltd have been successful in their bid to provide the project’s site preparation and infrastructure works.

Mr Numan concludes: “The Reefton Campground Accommodation Project aligns directly with BDC’s broader economic and community well-being strategies.

The units will initially provide short-term accommodation for Federation Mining workers and eventually be utilised for visitor accommodation, supporting Reefton’s expanding workforce and enhancing Reefton’s tourism capacity into the future.”

-ENDS-

For further information please contact:
Community Engagement Team
Buller District Council
Media.Enquiries@bdc.govt.nz

Disclaimer
The information in this media release was correct at time of publication. Changes in circumstances after the time of publication may impact on the accuracy of the information.