64 | Wilson Contractors: Gore and Invercargill Subdivision DEVELOPMENT Matai Ridge overcomes challenges The Matai Ridge subdivision on Gore Road. Russell Fredric Wilson Contractors’ determination to find an economically viable solution was pivotal to the development of the first large-scale residential subdivision in Gore since the 1980’s. Wilson Contractors chief executive Steve Osborne says creating an innovative commercial joint venture between the Gore District Council (GDC) and Wilson Contractors was the catalyst that enabled the council to green light the development of Matai Ridge, a 36 lot subdivision in East Gore. First tendered in 2017, the subdivision is on land bought by GDC with the aim of helping to alleviate a significant housing shortage. The road to get there was not without its challenges. After Wilson’s won the initial tender, design changes were subsequently needed to mitigate overland stormwater flow from a hill to the immediate east of the site, but the extra cost involved meant the project was no longer viable. One of the long-standing difficulties of the subdivision had been to attract developers because, while the cost of developing in any region is essentially the same, the land values in Gore did not allow enough margin to make it commercially profitable, Steve says. However, there was a strong will on the part of Wilson’s and the council to make the development viable. Following several further revisions in the ensuing years, land values fortuitously skyrocketed through the covid pandemic and demand for sections increased. “We came up with this proposal that it would be a joint venture where the council provided the land and Wilson’s would undertake the construction and project management, which is where our skill set is of course, and then we would all get paid at the end when the sections were sold.” The aim is to create a win-win situation with both the risk and profit shared between both parties, however, there is a strong altruistic element involved. “The purpose of the project was not profit; it was to bring new sections to Gore.” “The main driver for Wilson’s was to get the project running and provide work for us, and for the council it was to provide much needed housing on Gore.” “Both parties had a vested interested to see this project go ahead. It’s quite bespoke, the contract arrangement and what we’ve come up with, we’ve not done this with a council before; it could be a reasonable blueprint for smaller councils.” Demand for sections has been extremely strong; 75% of the stage one lots released for sale in December 2021 were sold in 24 hours. The second stage lots went on the market in February this year and demand has continued to be strong across the entire price range among both local and out of town buyers, with just five sections remaining to be sold in December 2022. Sections have been priced from $129,000 to $225,000. Wilson Contractors Southland manager Andrew Sinclair says it was great to see the vision for Matai Ridge become a reality. Because of the company’s expertise and significant resources, it is able to be a “one-stopshop” over a wide variety of infrastructure, drainage and civil works projects of varying scale. The past year has been extremely busy and while there were concerns in the early stages of the covid pandemic, Government stimulus packages such funding for “shovel ready” projects meant that some infrastructure projects were able to be brought forward. “That basically gave us a steady stream of work for the last year or so.” Central to the company’s operations and culture is its more than 100 staff which includes project managers, engineers, drainlayers, truck drivers and skilled machinery operators based in Southland and Central Otago. While recruitment of new staff is difficult, Wilson’s are in a fortunate position, Andrew says. “We don’t turn over a lot of staff. We’ve got a lot of skilled people here; they are here for a reason, and we make sure we look after them as best as we can, so they do stay.” Operating in both Otago and Southland, with branches in Queenstown, Cromwell and Invercargill, Wilson Contractors offer a wide range of services including Bulk Earthworks, Siteworks, Roading and Drainage. We have an experienced team and a vast range of equipment, enabling us to complete jobs from small driveways to multi million dollar subdivisions. 0800 276 637 info@wilsoncontractors.co.nz PO Box 24, Kingston, 9748 www.wilsoncontractors.co.nz
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