June 8, 2012.

Loan approved for Clean Technology Centre

Council has approved a $1.5 million loan to support the development of the Clean Technology Park in Otaki. Councillors voted to confirm inclusion of the funding in the 2012 Draft Long Term Plan yesterday.

A report to Council said the loan would be used to set up an independent Trust which would focus on growing the Clean Technology Park and attracting and supporting new clean technology business and development opportunities in Kapiti. Income generated by the trust would be used to pay back the loan over nine years.

“The business model is to develop a trust to provide direct services to emerging clean technology businesses, such as access to research and development facilities and commercialisation services.”

Support for the clean technology sector is a key strategic focus for Council as part of the draft strategy for Supporting Economic Development on the Kapiti Coast.

“The benefits to the District of a successful Clean Technology Park include strengthening and diversification of the economy and ultimately more job opportunities for local people.

“The development of the Park would cement Kapiti Coast’s position as a district which is known to support innovation and clean and sustainable technologies to help entrepreneurs to take their ideas through to commercial reality.”

Councillor Peter Ellis wanted assurances businesses attracted to the Park had the credentials to be there. “How do we know the tenants are involved in something new and not coming up with things that have been done somewhere else and shelved?”

Dr Gael Ferguson, Group Manager Strategy and Partnerships, said the entry criteria would be strictly controlled to ensure tenants were involved in new, experimental technology that reduced emissions, increased energy efficiency or reduced waste. There were opportunities for innovation around the science, scale or process.

The Trust, supported by Council funding - which will be paid back over nine years - will initially comprise three and eventually seven trustees; one will be a Councillor.

Mayor Jenny Rowan acknowledged providing seed funding to the Park broke new ground “but it has so many potential benefits for our region.” She said the selection of the remaining trustees would cement the integrity of the venture. “The Trust for me will be a collection of very focussed high fliers, people with a lot of networks in the clean technology area.”

Eleven businesses have signed pledges indicating an intention to become tenants of the Clean Tech Park. Dr Ferguson says this indicated a potential occupancy rate of 70%, which was very healthy for any commercial activity. A report will be brought back to council on 28 June for the appointment of a councillor trustee.

ENDS

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