Far North Holdings (FNHL) has been commissioned by the Ministry of Education to build a new area office in Kaitaia, on the site of the car-park the company owns at the corner of Redan Road and Commerce Street. The Ministry plans to move into the new building in December this year.
Aspects of the building’s design, construction and fit-out have been dictated by the Ministry of Education but it will be owned by Far North Holdings and will become one of several commercial properties in its portfolio. These produce financial returns to the company, contributing to its overall profit and the dividend paid by FNHL to Council to help offset rates by about four percent a year.
FNHL is a company that is completely owned by the Far North District Council and the vehicle for the Council’s commercial operations.
No Council funds are being used in the building’s construction. This is being financed entirely by the company. The long-term lease signed by the Ministry is a standard commercial tenancy arrangement and lease payments will cover all finance costs.
Half the car park will re-open as a public car park once construction is complete. It will be sealed and marked out. This will continue to complement the parking available in Kaitaia now on the Warehouse and old Pak ‘n Save sites.
Far North Holdings chief executive Andy Nock said the company welcomed the Ministry’s move to establish new offices in Kaitaia and, in so doing, upgrade the stock of commercial property in the town.
“There were no existing commercial properties on offer that met the Ministry’s requirements, and which were earthquake code compliant and secure from flooding. By providing the Ministry with a suitable building, and its staff with a workplace that is fit and safe to work in, we are enabling the Ministry to maintain a central presence in Kaitaia while also generating a return for all ratepayers.
“Part of our role is to provide and maintain infrastructure that works for our District’s economy by making the Far North a great place to live and work. This investment in Kaitaia’s commercial building stock helps to deliver that.”
About Far North Holdings Ltd
Far North Holdings Limited (FNHL) is responsible for managing and operating the commercial activities of the Far North District Council. These include Port Opua, Bay of Islands Marina, Kaitaia and Bay of Islands Airports, Paihia Maritime Buildings and Paihia Wharf, Williams Road Car Park and the Kaitaia Education Campus.
Since 2005 all of FNHL’s trading surplus has either been distributed to the Far North District Council or reinvested in property and infrastructure within the Far North District. The Far North District Council estimates that without this financial contribution general rates would have been approximately four percent a year higher, each year, over this period.
FNHL’s mandate includes the support and development of economic activity in the Far North.