Big plans for old Para Rubber site | Canterbury News | Local News in Canterbury

A retail and apartment block is planned for an inner-city site formerly owned by developer David Henderson.

City council chief executive Tony Marryatt said yesterday Mr Henderson was considering buying back the $5.5million property in Manchester and Tuam Sts, which was previously the Para Rubber site. However, regardless of whether or not the deal goes ahead, a plan for the site has already been approved by the city council and any new owner would be bound to that, said Mr Marryatt.

"The development has to be in accordance with the master plan, to control what happens to it," he said.

It includes retail in the ground floor and four floors of apartments above it.

The former Para Rubber site is the first of five central city properties Mr Henderson sold to the city council in a controversial deal in 2008.

Under the deal, the city council spent $17million buying five properties at market value from him, when the property developer was hit by the economic downturn.

Four of the sites were around Manchester St and a fifth site was in Sydenham, on the corner of Brougham and Colombo Sts.

Mr Henderson has first refusal to buy back the properties, with the option for the northern portion of the Manchester and Tuam site expiring this month and the southern portion in December.

Mr Marryatt said no ratepayer money would be lost if Mr Henderson decided to buy back the site from the city council.

"The conditional agreement with Mr Henderson is that he can purchase the property for the price the council paid for the property plus the council's subsequent holding costs or at the current market value - whichever is higher," said Mr Marryatt.

If Mr Henderson didn't buy the site back, the city council could then possibly put the property on the market or hold onto the land for a bit longer, said Mr Marryatt.

Mr Henderson could not be reached yesterday for comment.