One- and two-bedroom housing complex planned for former motel site
A new housing development for a former Nelson motel site plans to build 27 one- and two-bedroom units.
Milton Street Development Limited Partnership has put in a resource consent application for the former Milton Chalet Motel site to build a “comprehensive housing development” that would be leased to The Salvation Army.
The Nelson City Council confirmed it received the application on October 22.
“This application is currently in the early stages of review, and no decisions or assessments have been completed at this time,” head of regulatory services Mandy Bishop said.
A 19-unit development had been approved for the site in 2024, but this latest proposal was separate to that, she said.
“The current application under review differs from the previously approved configuration and unit mix.”
According to the consent application, the previous application would have had 19 two and three-bedroom dwellings, whereas the new proposal will have 27 one- and two-bedroom units across four two-storey blocks.
The development will also have a central communal area and a community room. It will have 21 car parks for residents, as well as three guest car parks and covered space for up to 41 bikes.
The site will be serviced by a private refuse collection service.
The development was “designed to achieve a high level of on-site amenity and a high-quality streetscape appearance”, the application said.
“A key difference of the current proposal from that previously consented is the extent of communal space provided centrally within the site for the shared use of residents. This will include a community courtyard, shared barbecue facilities, and a children’s play space, in addition to the community room.”
One-bedroom units will be 50m², while the two-bedroom units will be 75m².
Blocks one and two will be in the southern part of the site, with block one having eight two-bedroom townhouses, each with its own courtyard and entrance, while block two will have eight one-bedroom apartments – four on each floor.
Ground floor apartments will have a courtyard, and upper apartments a balcony.
Block three will be on the corner of Milton and Cambria streets, with five one-bedroom apartments and the community room.
Block four will have six two-bedroom townhouses, fronting Cambria St.
According to the application, the Nelson Tasman Urban Design Panel said it supported the overall concept and level of intensification.
“The Panel was excited to see this model of a charitable trust working with a social agency to deliver social housing on an inner-city site. It also commends the applicant on the provision of communal facilities including a community room, BBQ, vegetable gardens, and common safe space for gathering and consider that it potentially offers an excellent model for other social housing projects.”
The project would result in “positive effects for the community through increasing the quantum and diversity of housing stock in this locality, and through enhancement of the quality of the streetscape environment”, the application said.
“Overall, the proposal will result in actual and potential effects that are acceptable from a resource management perspective.”
Salvation Army national director of social housing, Greg Foster, said the project was a partnership between The Salvation Army and the Home Foundation group, funded by Home Capital Partners, with development management by Kāinga Maha and construction by Home Construction.
It will provide 100% social housing, with homes rented under Income-Related Rent Subsidy agreements, he said.
“This ensures secure, affordable, and sustainable housing for whānau in need. The design standard will target a minimum Homestar 6 standard, with sustainability at the forefront of our designs.”
The previously consented project was not suitable for the Salvation Army’s needs, Foster said.
“The revised development provides more one and two bedroom homes, as well as a higher number of homes to better meet the housing needs of the Nelson community.”
Deconstruction had begun, and many materials would be salvaged, with furniture and appliances donated from the former motel to local charities St Vincent de Paul, Whakatū te Korowai Manaakitanga Trust, and Tahunanui Community Trust.
Construction is expected to start in January 2026 and be completed by mid-2027.
By Katie Townshend, Nelson Mail
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