Horizons Regional Council is converting three vacant Palmerston North lots, valued at a combined $3.5 million, into staff car parking due to uncertainty surrounding local government reforms. Chief executive Michael McCartney confirmed the decision to use the Victoria Avenue and Grey Street sites for parking following a pause on previous building development plans.
Why is the council repurposing these vacant lots?
The decision to transition the sites into parking follows a delay in construction plans. According to Michael McCartney, ongoing local government reforms and growing uncertainty regarding the future of local governance have prevented the council from progressing with its original development intentions.
To prepare the 2218sqm area, the council recently spent approximately $30,000 laying metal to bring the site up to “car park standard.” McCartney noted that the site had remained untidy for an extended period and described the move as “prudent” to ensure the land is functional while the council decides on its long-term use or potential sale.
The council expects that if the site next to Regional House is eventually sold, they will at least recoup the total amount spent on purchasing the three properties.
What is the total investment in these properties?
The three sites represent a significant portion of the council’s property portfolio. MWRC Holdings Limited, a council-controlled organisation, managed the acquisitions over a three-year period to secure the land for the regional council.
The breakdown of the $3.5 million investment is as follows:
- 7 Victoria Ave: Purchased in 2021 for $1.1m.
- 3 Victoria Ave: Purchased in 2023 for $1.6m.
- 184 Grey St: Purchased in 2023 for $800,000.
While the total value is substantial, McCartney clarified that these lots constitute a small fraction of the council’s entire portfolio as the organisation manages current shifts in governance.
How does the Regional House seismic assessment affect the area?
The repurposing of the land coincides with significant changes to the nearby Regional House. In August 2025, the regional council voted to demolish the existing building after a 2024 seismic assessment identified portions of the Victoria Avenue structure as earthquake-prone.
To maintain safety until the building is vacated or demolished, the council has implemented several measures, including:
- Enhanced seismic monitoring of the structure.
- A text alert system to notify staff of the building’s status immediately following an earthquake.
The deadline for the building to be vacated or demolished is 2039, though the current demolition vote moves that timeline forward.
Will new parking alleviate city centre congestion?
Parking availability has been a persistent issue along the busy Victoria Avenue corridor. Local residents and business owners previously raised concerns about congestion when Inland Revenue moved into the Te Ao Nu site in 2019, which is also owned by Horizons.
The addition of dedicated Horizons car parking may provide relief to the area. By providing specific spots for council staff, the move could potentially free up more street space for shoppers, health service users, and other workers in the Palmerston North city centre.
With the ongoing seismic works at Regional House and the shift in land use on Victoria Ave, expect continued changes to traffic flow and parking availability in the central business district.
Frequently Asked Questions
Why aren’t the vacant lots being developed for buildings?
Local government reforms and uncertainty regarding the future of governance have caused the council to put building plans for these sites on hold.
How much did the council spend preparing the car park?
The council spent roughly $30,000 on laying metal to bring the 2218sqm site up to car park standards.
When will Regional House be demolished?
The regional council voted in August 2025 to demolish the building following its identification as earthquake-prone in 2024.
What do you think about the council’s decision to use these lots for parking? Let us know in the comments below or subscribe to our newsletter for more local governance updates.
