Developer Bob Clarkson is seeking Tauranga City Council support for a scheme to drive down land costs and lower housing prices for first-time homebuyers.

To do it Bob's declining profits on the rezoning of 520 acres of land between the highway and the river at Tauriko.

Bob Clarkson has a plan for Tauriko. Image: Google Earth.

He bought the land about three years ago for $24.50 per square metre.

Rezoning it for residential will give Bob an immediate profit of $70 million, without him having to lift a finger.

Bob's plan is to keep the affordable housing land price at what he paid for it.

With bulk buying on building materials, Bob says he will then be able to offer first-time homebuyers a three bedroom home on 400sqm with a two car internal garage for $280,000.

In Tauranga, a similar house on a smaller section costs $400,000-410,000, says Bob.

There will be covenants to prevent profiteering.

His intention is to sprinkle the affordable housing through the staged development in a move that will apply pressure on other developer's prices.

Over time he intends to build about 1000 affordable homes in the development which will comprise about half the 2000 sections.

He's proposing to supply his own water and sewerage schemes, so there will be no requirement for council impact fees.

Under present Tauranga City Council rules, the development is not permitted to use the council's Southern Pipeline because the bulk of the land is outside the city in the Western Bay of Plenty District. But Bob's done the figures in case it changes its mind.

He wants to start on a 50 acre lot immediately behind the Tauriko service station.

He's already obtained approval from the NZ Transport Agency for a roundabout providing access to a hoped for nearby industrial subdivision.

He says the land will take 150-200 houses with half of them being affordable, and from there the process can continue through the staged development.

Affordable housing is a big deal for Bob.

He didn't have much success while in Parliament, and not much has happened in the three and a half years since then, except for the government hints that it will trial one of his suggestions over 30 houses which will not make a difference to young first-time homebuyers' lives.

'I want the council to lead New Zealand in affordable housing,” says Bob.

He says at the moment Tauranga is the worst in the world for house prices versus income at 6.4 per cent.

'It's shocking and is not a record we want.”

He's seeking council approval for his concept, so he can go ahead with the plan.

'I want you to build fences with gates and not bloody walls,” says Bob.

'Tell me what I can do, not what I can't do.”

Bob was speaking in the open forum at the Tauranga City Council meeting on Monday. Councillors agreed its CEO Ken Paterson will talk with Bob and report back with a way forward.

Bob also has to deal with the Western Bay of Plenty District Council, the Bay of Plenty Regional Council and the Resource Management Act.