The Enterprise Drive Development, located in Levin, Horowhenua, represents an active economic development initiative that is transforming a long-vacant parcel of industrial land into a thriving industrial hub. The project showcases the power of collaboration in driving regional growth and explores the development's background, key milestones, economic outcomes, and broader impacts on the Horowhenua District.
In 2019, unproductive land on Enterprise Drive was purchased from the Horowhenua District Council. At the time, the region faced limited industrial and commercial growth, and the land had remained under-utilised for years.
Recognising the potential for economic revitalisation, Horowhenua New Zealand Trust leveraged its strong local connections to initiate the development. HNZT, established in 2018, identified and facilitated this opportunity. Trustee,Evan Kroll, learned about Thermosash Windows' need for industrial land and reached out to them. After assessing a range of potential land options, HDL acquired the 13.8-hectare lot through an open market tender.
Photo :Thermosash - Enterprise Drive
The philosophy behind the development of Enterprise Drive was centred around catalysing investment in the area rather than solely focusing on maximising profits for Horowhenua Developments Ltd. HDL aimed to attract third party inward investment into the region.
Melissa Hanson, Property & Development Manager for THCL/HDL encapsulated this approach, stating,
"It's been about getting the infrastructure in place, bringing it to market quickly, and empowering people to make choices about future purchases and investments."
This approach set HDL apart from other developers by prioritising collaboration, partnerships, and the overall economic development of the region. HDL's approach also encouraged locals to expand and enhance their own facilities, solidifying the Enterprise Drive Development and the surrounding area as the go-to destination for industrial development. By creating an environment that attracted other developers and businesses, HDL contributed to the expansion and growth of the local community.
Melissa Hanson provided invaluable insights into the strategic planning and execution behind the development of Enterprise Drive.
"We were purposeful about who we sold to, aiming for end uses that would bring the best economic and community benefits." This approach has resulted in a growing industrial area that supports local employment and economic activity, reinforcing Levin's reputation as a prime location for industrial development.
While not yet fully developed, (with approx. 44% of the land developed) success is evident in the diverse businesses it has attracted to date. The Crown purchased 4 hectares for a state-of-the-art Archives NZ repository, selecting Levin from a shortlist of13 potential sites across the lower North Island. This high-profile acquisition signalled confidence in the region's growth potential.
The development of Enterprise Drive is a prime example of economic development in action. To date the project has attracted significant inward investment, creating a ripple effect of positive social and economic impacts. The collaboration between HDL, HNZT, THCL, HDC, and Electra, was instrumental in overcoming initial challenges and ensuring the project's success.
In 2020, a $2.9 million capital investment grant from the New Zealand Government under the Crown Infrastructure Partners COVID recovery initiative was a catalyst for even more rapid development. This funding enabled HDL to accelerate the project by at least five years, significantly boosting the region's economic prospects.
The sale of large land lots allowed purchasers to further subdivide if needed, providing flexibility and fostering a secondary market for smaller section sales. This model ensured that the right ownership and businesses were attracted to the area, enhancing its economic viability.
Long standing local business Tatana Contracting played a key role in the development of Enterprise Drive, ensuring that the essential groundwork was expertly handled. This foundational work was critical in transforming the land into a functional and attractive site for future business developments.
Chevy Tatana explained, "Our involvement in Enterprise Drive was as the main civil contractor, laying all the services and completing the roading from Bridge Street to Cambridge Street." This infrastructure improvement facilitated smoother logistics and operations for local businesses, including their own. "Having a crew working locally on Enterprise Drive has kept us local and reduced travel," Chevy added.
Other notable businesses, such as LT McGuinness, have also invested in the development. They purchased a large section,subdividing it for mixed-use tenancies. This strategic move has attracted further downstream investments, including Carters, Tidy Slabs, Advanced Electrical, and Komatsu, creating a vibrant industrial ecosystem.
David Aldred, LT's Central Region Manager, highlighted their substantial investment in the development which has attracted major national tenants, further boosting the region's economic growth.
"We've been about finding national tenants to fill up our business park. So far, we have secured Komatsu, Carters, and Advanced Electrical as tenants, all of which bring significant employment opportunities to the region."
Catalysing Local Investment and Expansion
The development has acted as a catalyst for local investment, encouraging businesses to leverage and enhance their existing assets. For example, the investments made by other developers and businesses. The Wayne Bishop Group initiated a secondary industrial development on Bush Street, offering 15 units designed for tradies, industry, and manufacturing. This development not only created new business spaces but also boosted the local construction sector. Similarly, the relocation of United Steel from Petone to Levin and the expansion of Latteys' factory in Roe Street underscore the project's success in encouraging businesses to extend and improve their facilities. These investments have created a ripple effect, enhancing the region's economic vitality and making Levin a more attractive location for future developments.
Stephen Griffiths, the Development Manager at Homestead, described the approach, investment and positive impact of their involvement in the Enterprise Drive development.
Homestead's strategy is to attract businesses from outside the region, thereby injecting new economic activity into Levin. "We purchased the land to attract people and businesses from out of town," Stephen shared. The benefits of Levin's strategic location, resilience, and affordability have been pivotal in attracting businesses, which in turn has significantly boosted local employment. "Enterprise Drive has added to the employment opportunities to the town, benefiting not only contractors but people that live here," he noted.
The supportive local council and excellent infrastructure already in place were also key factors in facilitating smooth development. "Having land available for subdivisions has really helped us in our business growth and in attracting new businesses to Levin," Stephen concluded.
Homestead's investment has not only provided immediate economic benefits but also set the stage for sustained growth and development in the region.
"The strategic location of Levin, combined with its affordability and resilience, has made it an ideal spot for attracting businesses and fostering economic growth."
Collaboration and Social Impacts
The project has also had wider social impacts, not only creating local and sustainable jobs,improving employment quality, and fostering community growth. The relocation of Thermosash staff to Levin is a prime example of how the development has positive social outcomes by providing affordable housing and employment opportunities.
David Aldred spoke on the collaboration and local community impact of their development. "Since we established, we've set up a number of trade accounts around the local market. Our plant servicing, warrant of fitness, and other logistics are done locally, supporting local businesses," he shared. LT McGuinness's partnership with Tatana, a local contractor, has been instrumental. "We've worked closely with Tatana for all our site works, roading, and logistics facilities. This collaboration has strengthened local employment and economic activity," David added.
The Enterprise Drive Development continues to attract investment and development.Homestead Construction Ltd. has purchased multiple sections for further development, and the market remains robust. The upcoming Ō2NL (Otaki to North Levin) project, set to begin in 2025, will further enhance the region's connectivity and attractiveness for investment.
The Enterprise Drive Development continues to grow, the district stands to gain even more from increased employment, investment, and economic activity. The collaboration between independent agencies and stakeholders has set a strong foundation for future development, ensuring long-term prosperity for the region.
