A North Canterbury council has secured a "green" loan to support its efforts to adapt to coastal erosion.
The Hurunui District Council has been approved for a $23.5m green social and sustainability loan from the Local Government Funding Agency.
The agency provides a discounted loan margin to councils to finance projects which promote environmental and social wellbeing.
The loan will be used to fund the purchase of land on Ashworths Rd, south of Amberley, and to support the possible future relocation of Amberley Beach residents, whose properties are under threat from sea level rise and coastal erosion.
"This is an incredible moment for our district," Hurunui Mayor Marie Black says.
"Securing this loan is a testament to our commitment to a sustainable and resilient future for our community.
‘‘This funding allows us to proactively manage the long-term impacts of climate change on our coastal residents, ensuring their safety and security.’’
The council expected to drawdown the first $5.5m to fund the land acquisition and planning phases.
The balance of the loan would fund the sub-division of the sections and the infrastructure to support the new village, the council’s chief finance officer Jason Beck said.
He said the loan was initially for 10 years, but would be monitored over time.
‘‘It is expected that within that timeframe the construction of the subdivision will be completed and the sale of some of surplus sections (required to offset the cost of the project) will allow for repayment of the debt.’’
The advance was the ninth green social and sustainability loan to be issued by the agency and the second focused on climate change adaptation.
The council purchased the $3.8m Ashworths Rd property earlier this year and planned to rezone 20ha and sub-divide it for up to 109 properties, which faced a growing risk of sea level rise.
The project was hailed as "a uniquely Hurunui solution" by council chief executive Hamish Dobbie.
Last month, the council approved funding of up to $250,000 to allow staff to proceed with a plan change.
The land was presently zoned rural and any plan change would be subject to the National Policy Statement for highly productive land.
The council would recover the costs of the project through a range of sources, including grazing and future land sales.
Amberley Beach residents who opted into the scheme would pay a targeted rate to secure a section.
In the meantime, the Amberley Beach village was protected from the sea by a coastal bund, funded by the residents through a targeted rate.
A bund was a type of embankment which offers protection against the sea.
LDR is local body journalism co-funded by RNZ and NZ On Air.
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