A massive subdivision planned for the site of a quarry on the outskirts of Cromwell has almost doubled in density, with developers using the government’s fast track legislation to bypass local planning hurdles they claim would cause significant delays.

The proposed Parkburn project, led by Fulton Hogan Land Development, was officially referred to the government’s fast-track consenting process by Infrastructure Minister Chris Bishop last week.

While the initial proposal that prompted Central Otago District Council’s Plan Change 21 included fewer than 600 new homes on the 118-hectare site, fast track documents show Fulton Hogan's revised plan includes closer to 1000 “across a range of densities”.

Also proposed, spaces for shops, businesses, healthcare, a preschool and a primary school, as well as two “coves” extending into Lake Dunstan.

An end-of-life quarry near Cromwell could become a new 1000-home neighbourhood in a proposed staged development. Image: The Central App

Briefing documents to the minister said the developer acknowledged its higher-density plan was technically non-complying and that was “likely to create significant delays if the project proceeds under normal RMA processes".

They also said because the local plan was only recently made operative, the developer's ability to pursue another plan change locally was "limited”, while the government’s fast track process would "support and facilitate more timely and efficient delivery of the project”.

The minister backed the referral, saying the project met the criteria because it would “increase the supply of housing" and "deliver significant economic benefits".

Analysis showed the project would contribute $472M to New Zealand’s GDP and support 331 jobs over a 10-year delivery period.

The minister was told Fulton Hogan believed the proposal would respond “to identified housing needs” in Cromwell and the wider district, including affordable housing and housing to “support the demands that are expected to arise from the proposed mining operations planned across Central Otago”.

The project is not without early red flags, and Contact Energy has signalled all private land and roads in any new development on the site should be elevated to 197 metres to mitigate flooding risks associated with the Clyde Dam.

Fulton Hogan now has a two-year deadline to lodge a "substantive application".

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