Application for Land Use Consent: Reference: 237947

Proposed Nutritional Powder Prepared for: Westland Co-operative Dryer 7, Hokitika Company Limited Revision: 2 Assessment of Environmental Effects 24 January 2014 Westland Co-operative Dairy Company Limited

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T +64 3 366 0821 F +64 3 379 6955 E [email protected] W aurecongroup.com

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Report title Application for Land Use Consent: Proposed Nutritional Milk Powder Dryer 7, Hokitika

Document ID final Project number 237947

P:\237947 - Westland - Hokitika Dryer 7\docs\Westland D7 Land Use Consent File path Application - Westland Hokitika Rev 2.docx Westland Co-operative Dairy Client Client contact Antony Michalik Company Limited Prepared Rev Date Revision details/status Author Verifier Approver by

Draft Land Use Consent 0 13 December 2013 D Thorne D Thorne M Allan M Allan Application – For Client Review Draft Land Use Consent 1 8 January 2014 Application – For Council D Thorne D Thorne M Allan M Allan Feedback Land Use Consent Application – 2 24 January 2014 D Thorne D Thorne M Allan M Allan For Lodgement

Current Revision 2

Approval

Author signature Approver signature

Name Daniel Thorne Name Mark Allan

Title Senior Planner Title Planning Manager

Project 237947 File Westland D7 Land Use Consent Application - Westland Hokitika Rev 2.docx 24 January 2014 Revision 2

Application for Land Use Consent: Proposed Nutritional Milk Powder Dryer 7, Hokitika

Date 24 January 2014 Reference 237947 Revision 2

Aurecon New Zealand Limited Unit 1, 150 Cavendish Road Casebrook Christchurch 8051 PO Box 1061 Christchurch 8140 New Zealand

T +64 3 366 0821 F +64 3 379 6955 E [email protected] W aurecongroup.com

Project 237947 File Westland D7 Land Use Consent Application - Westland Hokitika Rev 2.docx 24 January 2014 Revision 2

APPLICATION FOR RESOURCE CONSENT SECTION 88, RESOURCE MANAGEMENT ACT 1991

TO: Westland District Council Private Bag 704 HOKITIKA

WE: Westland Co-operative Dairy Company Limited (‘Westland’) apply for land use consent to: ° Establish, operate and maintain a nutritional milk powder dryer (‘D7’) and associated plant, buildings and structures at the existing Westland dairy factory site at 56 Livingstone Street, the key elements of which include: − A dryer building approximately 35m in height with a noise-attenuated stack to a maximum height of approximately 43m; − A nutritional dry store and packing facility to be located adjacent to the existing dry store; − An extension to the existing railway siding servicing the site; − Ancillary buildings and structures to support D7 including services areas, personnel entry and control, raised walkways, silos, pipe bridge extensions (so as to create a full ‘ring-main’ of services for the site) and loading areas; and ° Disturb soils of a contaminated site (consent sought under the Resource Management (National Environmental Standards for Assessing and Managing Contaminants in Soil to Protect Human Health) Regulations 2011). The proposed D7 development is further described in Section 3 of the attached resource management report and as illustrated in the Proposed Development Plans attached at APPENDIX A.

OWNER AND OCCUPIER: ° Westland Co-operative Dairy Company Limited; and

° Westland District Property Limited (in respect of Section 4111 of TN of Hokitika (over which Westland hold a license to occupy) and Lot 4 DP 1775).

LOCATION: ° 56 Livingstone Street, Hokitika, being that land legally described as follows:

Certificates of Title (attached at Legal Description Area (ha) APPENDIX B )

Lot 1 DP 2295 1.0000 WS8A/994 Lot 2 DP 1775 0.3397

Lot 1 DP 2461 WS5C/986 0.3044

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Certificates of Title (attached at Legal Description Area (ha) APPENDIX B )

Lot 4 DP 2295 WS5B/1242 0.4766

Section 1 SO 323271 260992 0.3016

Res 447 WS3A/917 1.4847

Lot 1 DP 3914 WS8C/1151 0.3565

Lot 2 DP 3914 WS8C/1152 0.1361

Lot 2 DP 2461 1.3842 WS8C/1153 Lot 3 DP 3914 0.1472

Lot 4 DP 3914 WS8C/1154 1.4920

Section 1 SO 435573 557022 0.4813

Section 4111 TN of Hokitika 0.0124 WS3B/1350 Lot 4 DP 1775 0.0009

ADDITIONAL RESOURCE CONSENTS REQUIRED: ° Westland currently hold the following regional resource management authorisations of relevance to the present proposal:

Consent Number Consent Type Lapse Date

Discharge Permit to discharge dairy flotation sludge onto land around Hokitika.

RC96018 Discharge Permit to discharge contaminants to air 7 January 2017 from a boiler chimney, two milk powder drier extract ducts and conveying system exhausts.

Water Permit to take up to 4000m 3 of water per day from the Hokitika River. RC98033 [v3] 6 March 2021 Discharge Permit to discharge cooling water and general wastewater to the Hokitika River.

Discharge Permit to discharge contaminants to air from a 25 MW coal-fired boiler, 9 MW Foster Wheeler RC98038 [v3] boiler, 8 MW Anderson boilers (x2), 6.2 tonne milk 20 May 2022 powder drier, 5.2 tonne Niro milk powder drier, and 1.8 tonne Stork milk powder drier.

Certificate of Compliance to discharge CC98038 N/A contaminants to air from the protein dryers on site.

Coastal Permits, Land Use Consent, Water Permit RC12081 /1 – 5 associated with the construction and operation of an 20 June 2038 ocean outfall

The D7 project is expected to be able to operate within the conditions and parameters set by the abovementioned resource management authorisations. Further information on these matters will be available once detailed engineering design has been completed, however should it be identified that

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the D7 project is unable to operate within the confines of the relevant resource management authorisations, a separate resource consent application, or an application to vary the conditions of the relevant consent as appropriate, will be sought from West Coast Regional Council at that time.

FOURTH SCHEDULE: We enclose, in accordance with the Fourth Schedule of the Resource Management Act 1991, an assessment of environmental effects in the detail that corresponds with the scale and significance of the effects that the proposed land use and activities may have on the environment.

ADDITIONAL INFORMATION: We enclose any information required to be included in this application by the district plan, the regional plan, the Resource Management Act 1991, or any regulations made under that Act: ° See Appendices

------(Signature of applicant or person authorised to sign on behalf of applicant). Dated at Christchurch this 24 th day of January 2014

ADDRESS FOR SERVICE: ADDRESS FOR INVOICING: Aurecon New Zealand Limited Westland Co-operative Dairy Company Limited PO Box 1061 PO Box 138 CHRISTCHURCH ROLLESTON

Attention: Daniel Thorne Attention: Antony Michalik

Telephone: (03) 366 0821 Facsimile: (03) 379 6955 E-mail: [email protected]

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Contents

1 Introduction 1 1.1 Report Contents and Structure 1 1.2 The Applicant 2 2 Site Description 3 3 The Proposal 6 3.1 Project Outline 6 3.2 Project Details 6 4 District Plan Assessment 9 4.1 Westland District Plan 9 4.2 Summary 13 5 Resource Management Regulations 14 5.1 National Environmental Standards for Assessing and Managing Contaminants in Soil to Protect Human Health 14 6 Assessment of Environmental Effects 16 6.1 Positive Effects 17 6.2 Visual Effects 17 6.3 Transport Effects 19 6.4 Noise Effects 19 6.5 Contamination 21 6.6 Hazardous Substances 21 6.7 Earthworks / Construction Effects 22 6.8 Conclusion 23 7 Objective and Policy Assessment 24 7.1 Westland District Plan 24 7.2 Summary 27 8 Consultation 28 9 Resource Management Act 1991 29 9.1 Part 2 29 9.2 Section 104D Assessment 30 9.3 Conclusion 30 10 Conclusion 31

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Appendices

Appendix A Proposed Development Plans Appendix B Certificates of Title Appendix C Aerial Photo Package Appendix D Acoustic Assessment Appendix E Detailed Site Investigation Appendix F Indicative 3D Development Plans

Figures Figure 1 Aerial View of Site (Source: Westland) 4 Figure 2 WDP – Hokitika Planning Map (Source: Westland IntraMaps) 5 Figure 3 WDP – Planning Map 3 (Source: Westland IntraMaps) 9 Figure 4 Aerial of Westland Factory Site (Source: Westland) 16 Figure 5 Aerial of Westland Factory Site – Looking North (Source: Westland) 17 Figure 6 View of Westland Factory Site from Town Belt East (Source: Westland) 18 Figure 7 Location of Soil Samples (Source: Opus DSI) 21

Tables Table 1 Westland Milk Products – Hokitika Site Details 4 Table 2 Relevant Authorisations from the West Coast Regional Council held by Westland 8 Table 3 Westland District Plan Assessment – Westland Milk Dryer 7 Project 13 Table 4 National Environmental Standard Assessment – Westland Milk Dryer 7 Project 15

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1 Introduction

1.1 Report Contents and Structure This report has been prepared in accordance with the requirements of Section 88 of, and the Fourth Schedule to, the Resource Management Act 1991 to accompany the land use consent application by Westland Co-operative Dairy Company Limited (‘Westland’) seeking to: ° Establish, operate and maintain a nutritional milk powder dryer (‘D7’) and associated plant, buildings and structures at the existing Westland dairy factory site at 56 Livingstone Street, the key elements of which include: − A dryer building approximately 35m in height with a noise-attenuated stack to a maximum height of approximately 43m; − A nutritional dry store and packing facility to be located adjacent to the existing dry store; − An extension to the existing railway siding servicing the site; − Ancillary buildings and structures to support D7 including services areas, personnel entry and control, raised walkways, silos, pipe bridge extensions (so as to create a full ‘ring-main’ of services for the site) and loading areas; and ° Disturb soils of a contaminated site (consent sought under the Resource Management (National Environmental Standards for Assessing and Managing Contaminants in Soil to Protect Human Health) Regulations 2011). The proposed D7 development is further described in Section 3 of the attached resource management report and as illustrated in the Proposed Development Plans attached at APPENDIX A. This report is intended to provide the information necessary for a full understanding of the proposal and any actual or potential effects the proposed activity may have on the environment and includes the following information for this purpose. ° A description of the existing environment ° A description of the proposal ° An assessment against the Westland District Plan ° An assessment against the relevant Resource Management Regulations ° An assessment of any actual or potential environmental effects ° An assessment against the relevant objectives and policies ° A description of the consultation undertaken ° An analysis against the Resource Management Act 1991 Overall, land use consent is sought for a non-complying activity as identified within Section 4 of this report. The following documents are attached in support of, and form part of, the application:

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° Proposed Development Plans ° Certificates of Title ° Aerial Photo Package ° Acoustic Assessment ° Detailed Site Investigation ° Indicative 3D Development Plans

1.2 The Applicant By way of background, Westland Milk Products (the trading name for Westland Co-operative Dairy Company Limited) is an independent New Zealand co-operative dairy company producing a diverse range of products for nutritional, food and beverage applications. These include milk powders, milk fats, milk proteins, bioactive milk based products and a range of other related consumer and nutritional products. The company was formed in 1937 when several smaller dairy co-operatives joined forces to form ‘Westland Dairy Co-operative Limited’. With the consolidation of the dairy industry and formation of in 2001, Westland was one of only two dairy co-operatives that remained 100% independent. Today Westland remains 100% independent and dairy farmer owned, with more than 330 farmer shareholders. Westland’s present milk collection catchment area spans over 440 kilometres from Karamea in the North to Fox Glacier in the South, with recent expansion into the Canterbury region. The decision to remain independent ensures that the economic and social benefits of maintaining the dairy processing industry on the West Coast are fed back into the local and regional economy and communities. Further details on Westland can be found on their website, www.westland.co.nz.

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2 Site Description

The Westland dairy factory is located at 56 Livingstone Street, Hokitika, and is legally described as follows.

Location 56 Livingstone Street, Hokitika Aerial View of Site (Source: Westland IntraMaps)

SUBJECT SITE

DEVELOPMENT AREA

Certificates of Title (attached at Legal Description Area APPENDIX B)

Lot 1 DP 2295 1.0000 WS8A/994 Lot 2 DP 1775 0.3397

Lot 1 DP 2461 WS5C/986 0.3044

Lot 4 DP 2295 WS5B/1242 0.4766

Section 1 SO 323271 260992 0.3016

Res 447 WS3A/917 1.4847

Lot 1 DP 3914 WS8C/1151 0.3565

Lot 2 DP 3914 WS8C/1152 0.1361

Lot 2 DP 2461 WS8C/1153 1.3842

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Lot 3 DP 3914 0.1472

Lot 4 DP 3914 WS8C/1154 1.4920

Section 1 SO 435573 557022 0.4813

Section 4111 TN of Hokitika 0.0124 WS3B/1350 Lot 4 DP 1775 0.0009

Total Area 7.9176ha

Westland Co-operative Dairy Company Limited Owner Westland District Property Limited (in respect of Section 4111 TN of Hokitika and Lot 4 DP 1775)

Table 1 Westland Milk Products – Hokitika Site Details

Westland has a long history of successfully operating in Hokitika, with dairy processing facilities first established on the site in 1967. Since this time several expansions have occurred, with the dairy factory now occupying an approximately 7.9ha block of land on the outskirts of the town, bound by Livingstone Street, Stafford Street, Town Belt East and Gibson Quay. In addition, Westland owns some 1.23ha of land along the eastern boundary of Town Belt East which comprises two residential properties, a BP re-fuelling facility Figure 1 Aerial View of Site (Source: Westland) and vacant land. The site is predominantly flat and located at the edge of the built-up area of Hokitika, and adjacent to the Hokitika River. As identified in Figure 1 and in the Aerial Photo Package attached at APPENDIX C , the site is currently occupied by Westland’s key processing plant including six dryers, five boilers (one of which is currently under construction), and associated processing and storage facilities. In addition to these key processing operations, Westland’s office, research and transportation servicing facilities are also located at the site. A railway siding linking the site with the Hokitika Branch Railway Line has been constructed parallel to the southern boundary of the site. Landscaping across the site is limited to a section of grass established centrally on the site, with large grass berms and tree plantings located along the Stafford Street and Livingstone Street boundaries. The main site access is via Livingstone Street and Stafford Street, with heavy vehicle / milk tanker access provided by a one way system through the site, with entrance via Town Belt East and exit via Stafford Street. A total of 211 car parking spaces are provided to service the site (40 of which are currently under construction as part of the ‘Boiler 5’ project), along with 25 parking spaces for milk tankers.

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The site is largely zoned ‘Industrial / Commercial’ under the Westland District Plan as identified in Figure 2, with a small narrow parcel of land located along the southern boundary of the site (largely corresponding with that land identified as Gibson Quay) located within the Rural Zone. The land to the north and west is zoned Residential Mixed, with this zoning predominately characterised by low density residential dwellings, with other activities within the Zone including the Hokitika Holiday Park, a corner dairy and self-storage units, all of which are located directly to the north of the site. The land to the east is zoned Small Settlement, with this comprising residential dwellings and a BP re-fuelling facility. The land to the south is zoned Rural, with this comprising a walkway / accessway running parallel to the site and the Hokitika River, along with the existing railway infrastructure which services the site.

SUBJECT SITE

Figure 2 WDP – Hokitika Planning Map (Source: Westland IntraMaps)

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3 The Proposal

3.1 Project Outline The proposal is to establish, operate and maintain a nutritional milk powder dryer (‘D7’) and associated plant, buildings and structures at 56 Livingstone Street, the key elements of which include: ° A dryer building approximately 35m in height with a noise-attenuated stack to a maximum height of approximately 43m; ° A nutritional dry store and packing facility to be located adjacent to the existing dry store; ° An extension to the existing railway siding servicing the site; ° Ancillary buildings and structures to support D7 including services areas, personnel entry and control, raised walkways, silos, pipe bridge extensions (so as to create a full ‘ring-main’ of services for the site) and loading areas. In addition to the above, the proposal also seeks to disturb soils of a contaminated site (consent sought under the Resource Management (National Environmental Standards for Assessing and Managing Contaminants in Soil to Protect Human Health) Regulations 2011).

3.2 Project Details

3.2.1 Dryer 7 In short, the proposed ‘D7’ nutritional milk powder dryer will process raw milk product into various nutritional milk products (e.g. infant formula, growing up milk powders etc.). This process primarily involves the removal of water whilst retaining all the essential properties of milk, and is achieved through boiling the milk under reduced pressure at low temperature in a process known as evaporation. The resulted concentrated milk is then sprayed in a fine mist into hot air which removes further moisture and creates a milk powder product. D7 will have a capability of manufacturing an additional 13 – 23,000MT per year of paediatric nutritional products. As identified in the Proposed Development Plans attached at APPENDIX A the proposed D7 building will have a height of approximately 35m above ground level, with a noise-attenuated stack approximately 43m above ground level. The D7 building will have a building footprint of approximately 420m 2 with the associated evaporators having an approximate floor area of 120m 2. In addition, there are several associated facilities including a bulk ingredients store (approximate floor area 550m2) and an I.F batching area (or ‘wet process area’) having an approximate floor area of 250m2. Within these areas the milk products will undergo a batching process to manufacture various infant formula products. As part of the D7 project a new dry store and nutritional packing facility is to be established, with this having an approximate floor area of 1290m 2. This dry store will be established directly adjacent to the D7 building and the existing processing facilities to ensure efficiencies in product storage and distribution. An external loading area is proposed to support the transportation of goods to and from the dry store and packing facility. In order to control noise emissions from the proposed container

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handling area a noise barrier having a height of 3m is to be established in the location identified in the Acoustic Assessment attached at APPENDIX D. An extension to the existing pipe bridge through the site is proposed, with this involving an extension to reticulate steam and other services to D7 so as to create a full ‘ring main’ of services for the Westland dairy factory site. In addition to the above primary processing facilities, the proposal will also involve the construction of several silos containing milk, water and oil, the locations of which are identified in the Proposed Development Plans attached at APPENDIX A. An extension to the existing laboratory facility is also proposed, with this to be established adjacent to Livingstone Street having a floor area of approximately 315m2. The proposed buildings will be largely constructed from precast concrete panels with extensive use of long run coloursteel panels. The colour scheme for the proposed buildings and facilities will be consistent with the existing Westland colour scheme as seen throughout the existing dairy factory site. As identified on the Proposed Development Plans attached at APPENDIX A , the ‘Westland Milk Products’ logo will be established on both the northern and southern façades of the D7 building at a height of approximately 32m above ground level. The proposed dimensions of each sign are 1.5m x 15.0m, each having an area of 22.5m2. As to be expected, significant earthworks will be required in order to establish the appropriate foundations for the D7 building and associated buildings. In this regard, preliminary engineering estimates identify that excavation up to 4m in depth will be required, with a volume of earthworks in the order of 15,000m 3.

3.2.2 Transportation The existing railway siding located along the southern boundary of the site is proposed to be extended to the north east, generally following the boundary of the site so that the siding runs parallel to Town Belt East. The total length of the proposed siding extension is in the order of 100m, with this allowing for additional railway carriages to be ‘parked’ on site so as to accommodate the additional product capacity of D7. At present the existing rail movements comprise one return trip per day, with a train arriving at the Westland dairy factory in the morning and departing in the early evening. It is anticipated that while additional carriages will be able to be accommodated at the site, there will be no increase in existing rail movements to or from the site as a consequence of the D7 project. It is anticipated that there will be no significant increase in milk tanker movements or heavy vehicles arising from the D7 project, primarily as the D7 creates ‘added value’ from the existing milk arriving at the site, and further, the finished product will be transported via rail. The existing vehicle access arrangements to the site will remain unchanged, with heavy vehicle movements entering the site via Town Belt East, and exiting the site via Stafford Street. Similarly, no changes are proposed to the current car parking arrangements on site, with the exception of a loss of 5 car park spaces in that location where the laboratory facility is to be extended. As a consequence, a total of 206 car parks will be provided to the dairy factory site, and we note that observations and monitoring by Westland staff have identified a surplus in car parking such that no additional car parking is proposed as part of the D7 project.

3.2.3 Operational Matters At present, the Westland site employs some 371 staff, with these spread amongst office / administration, research and development, factory and transportation divisions. Due to the shift

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arrangements at site, the numbers of staff on site at any one time vary considerably. The proposed D7 project will see the creation of some 28 additional staff employed on a four day on four day off roster arrangement. The hours of operation for D7 will be the same as that for the entire Westland operations, with this being up to 24 hours per day, seven days per week, although actual operation is expected to be somewhat less than this. At present, Westland hold several regional resource management authorisations associated with the operations on the site, with those of particular relevance identified as follows:

Consent Number Consent Type Lapse Date

Discharge Permit to discharge dairy flotation sludge onto land around Hokitika. RC96018 Discharge Permit to discharge contaminants to 7 January 2017 air from a boiler chimney, two milk powder drier extract ducts and conveying system exhausts.

Water Permit to take up to 4000m 3 of water per day from the Hokitika River. RC98033 [v3] 6 March 2021 Discharge Permit to discharge cooling water and general wastewater to the Hokitika River.

Discharge Permit to discharge contaminants to air from a 25 MW coal-fired boiler, 9 MW Foster Wheeler boiler, 8 MW Anderson boilers (x2), 6.2 RC98038[v3] 20 May 2022 tonne milk powder drier, 5.2 tonne Niro milk powder drier, and 1.8 tonne Stork milk powder drier.

Certificate of Compliance to discharge CC98038 N/A contaminants to air from the protein dryers on site.

Coastal Permits, Land Use Consent, Water RC12081 /1 – 5 Permit associated with the construction and 20 June 2038 operation of an ocean outfall

Table 2 Relevant Authorisations from the West Coast Regional Council held by Westland Westland’s Environmental Manager, Mr Chris Pullen has confirmed that the D7 project is able to operate within the conditions and parameters set by the abovementioned resource management authorisations. Further information on these matters will be available once detailed engineering design has been completed, however should it be identified that the D7 is unable to operate within the confines of the relevant resource management authorisations, a separate resource consent application, or an application to vary the conditions of the relevant consent as appropriate, will be sought at that time. Similarly, given the scale of the proposed development it should be noted that minor changes to the proposed buildings and structures on site may arise as a consequence of detailed engineering design. Any such changes are expected to be minor, limited to matters of detail, and will be within the scope of the application as currently sought. Any such changes will be communicated to Council as and if they arise.

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4 District Plan Assessment

4.1 Westland District Plan The subject site is largely located within the Industrial / Commercial Zone under the Westland District Plan (WDP), as identified in Figure 3 below. A small narrow parcel of land located along the southern boundary of the site (largely corresponding with that land identified as Gibson Quay) is located within the Rural Zone. The Greymouth – Hokitika Railway Line is located along part of the southern boundary of the site, with this being designated for ‘railway purposes’ by the New Zealand Railways Corporation (‘KiwiRail’). Figure 3 WDP – Planning Map 3 (Source: Westland IntraMaps) There are no other special notations or designations identified on the Planning Map that affect the site. Under the WDP Livingstone Street to the west of the site is classified as a ‘Collector Road’, Stafford Street to the north is an ‘Arterial Road’ and Town Belt East and Gibson Quay are classified as ‘other’ roads. The area of land proposed to be developed as part of the D7 project is predominantly zoned Industrial / Commercial, however a small portion of development land located in the south eastern corner is zoned Rural. While no buildings are proposed on this area of Rural zoned land, the existing railway siding (representing an industrial activity) is proposed to be extended over said land. Consistent with the approach taken by Council with regards to the previous railway siding extension undertaken in May 2012, we understand that this aspect of the proposal will require resource consent as a discretionary activity. Notwithstanding, we note that this does not change the overall activity status of the application. Table 3 below provides a compliance assessment against the relevant rules of the Industrial / Commercial Zone, being those which are most relevant to a consideration of the present proposal.

Rule Explanation / Requirement Activity Status

Part 5: Policy Units

Part 5.2: Hokitika Policy Unit 5.2.3.1 – Permitted Activities (a) Hours of Industrial / Commercial Zone: No limit N/A

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Rule Explanation / Requirement Activity Status

Operation (b) Gross Ground Industrial / Commercial Zone: No limit N/A Floor Area (c) Height Industrial / Commercial Zone: 15m Discretionary Comment As identified in the Proposed Development Plans, the D7 building will have a maximum height of approximately 35m, with a noise-attenuated stack having a maximum height of approximately 43m. All other proposed buildings will comply with the 15m height limit for the Industrial / Commercial Zone. (d) Height in Industrial / Commercial Zone: Permitted Relation to Recession Plane in Appendix D to commence 2.5m above Boundaries residential zone boundaries. Comment The proposed development area is generally located in the southeast corner of the site, well setback from adjoining residential zone boundaries. As such, the proposal will comply with the recession plane requirements. (f) Yards Industrial / Commercial Zone: Permitted (minimum) Front – Nil Side - 3 m (where adjoins residential zone boundary) Rear - 3 m (where adjoins residential zone boundary) Comment The proposed development area is generally located in the southeast corner of the site, well setback from adjoining residential zone boundaries, and therefore the abovementioned yard setback requirements are not applicable. (g) Site Coverage Industrial / Commercial Zone: No limit N/A (h) Building Industrial / Commercial Zone: 25m (where adjoins residential Permitted Length zone boundary) Comment The proposed development area is generally located in the southeast corner of the site, well setback from adjoining residential zone boundaries, and therefore the abovementioned building length requirement does not apply. (i) Glare Industrial / Commercial Zone: 10 lux Permitted Comment Any lighting associated with the proposed D7 project will be designed and located so as to meet this requirement. (k) Signs Industrial / Commercial Zone: No limit N/A (l) Noise Industrial / Commercial Zone: Discretionary

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Rule Explanation / Requirement Activity Status

0700 - 2000 hrs Mon - Fri and 0700 - 1800 hrs Saturday: 60dBA L10 at any point within the boundary of a residential activity or a residential zone All other times including public holidays: 50dBA L10 at any point within the boundary of a residential activity or a residential zone On any day between 10.00 p.m. & 7.00 a.m. the next day: 75dBA Lmax. Comment As identified in the Acoustic Assessment attached at APPENDIX D, cumulative noise levels from the site will generally comply with the WDP noise limits, except during the daytime on Sundays (and on Public Holidays) as a result of the lower noise limits that apply at this time. (n) External Industrial / Commercial Zone: Discretionary Storage Screened by 1.8 m fence or landscaped (where adjoins residential zone boundary or any public place). Comment As identified on the Proposed Development Plans and in the Acoustic Assessment, a noise barrier is to be established which will largely serve to screen views of the external storage area from Town Belt East. However, no such screening or landscaping is to be provided along the entire Town Belt East or Gibson Quay boundaries.

5.2.3.2 Discretionary Activities

(c) Height Industrial / Commercial Zone: Non Complying (maximum) Accessory buildings: 5m All others: 20m Comment As identified in the Proposed Development Plans, the D7 building will have a maximum height of approximately 35m, with a noise-attenuated stack having a maximum height of approximately 43m. All other proposed buildings will comply with the 15m height limit for the Industrial / Commercial Zone. (l) Noise Industrial / Commercial Zone: Non Complying 0700 - 2000 hrs Mon - Fri and 0700 - 1800 hrs Saturday: 60dBA L10 at any point within the boundary of a residential activity or a residential zone All other times including public holidays: 50dBA L10 at any point within the boundary of a residential activity or a residential zone On any day between 10.00 p.m. & 7.00 a.m. the next day: 75dBA Lmax. Comment

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Rule Explanation / Requirement Activity Status

As identified in the Acoustic Assessment attached at APPENDIX D, cumulative noise levels from the site will generally comply with the WDP noise limits, except during the daytime on Sundays (and on Public Holidays) as a result of the lower noise limits that apply at this time. (n) External Industrial / Commercial Zone: Non Complying Storage Screened by 1.8 m fence or landscaped (where adjoins residential zone boundary or any public place). Comment As identified on the Proposed Development Plans, a noise barrier is to be established which will largely serve to screen views of the external storage area from Town Belt East. However, no such screening or landscaping is to be provided along the entire Town Belt East or Gibson Quay boundaries.

Part 8: General Rules for All Activities

8.2: Signs

8.2 Signs may be illuminated but may not be flashing, revolving or Permitted retro-reflective.

Signs shall have neat and uncluttered lettering. Signs must relate to a facility or activity in the District. Signs shall be erected on the property to which they relate except for any sign advertising forthcoming sporting, religious or cultural events (including general or local body elections) provided that the sign shall be displayed for not more than 3 months before and shall be removed within 10 days after the event. Signs shall be sited so that they do not restrict visibility to and from intersections and property accesses. Signs shall not conflict with the colour combinations or shape of traffic control signs. Signs and support structures shall be well maintained. Comment The proposed signage on the D7 building will comply with the abovementioned requirements.

8.10: Manoeuvring and Parking Space Dimensions for Cars

8.10.2 Vehicle Off street parking places on the site of the activity must be Discretionary Parking available according to the following requirements. Standards Industrial Activities: 1 space per 100m² of gross floor area Manoeuvring and loading and parking areas for commercial vehicles and coaches should be designed for vehicles expected to use the site to the specifications in Diagram 8.2(b). Comment At present, the existing gross floor area of all buildings on the

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Rule Explanation / Requirement Activity Status

site is some 24,240m 2, with the WDP requiring a total of 242 car parks. The gross floor area of all buildings associated with D7 is in the order of 2,150m2, requiring the provision of some 22 additional car parks, with a total site requirement of 264 car parks. As identified in the Proposed Development Plans, some 206 car parks are provided, and no additional car parking is proposed as part of the D7 project. Further, sufficient manoeuvring areas are provided on site to accommodate milk tankers and other commercial vehicles.

Table 3 Westland District Plan Assessment – Westland Milk Dryer 7 Project

4.2 Summary The assessment provided in Table 3 has identified the need for resource consent in respect of the following activities: ° Height – Part 5.2.3.1(c) and 5.2.3.2(c) (non-complying activity) ° Noise – Part 5.2.3.1(l) and 5.2.3.2(l) (non-complying activity) ° External Storage – Part 5.2.3.1(n) and 5.2.3.2(n) (non-complying activity) ° Car Parking – Part 8.10.2 (discretionary activity) In addition, resource consent is required to undertake an extension to the existing railway siding located within the Rural Zone. Applying the most stringent activity status, the proposed establishment, operation and maintenance of D7 and its associated plant, buildings and structures at 56 Livingstone Street is to be assessed overall as a non-complying activity .

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5 Resource Management Regulations

5.1 National Environmental Standards for Assessing and Managing Contaminants in Soil to Protect Human Health The Resource Management (National Environmental Standards for Assessing and Managing Contaminants in Soil to Protect Human Health) Regulations 2011 (‘NES’) were gazetted on 13 October 2011 through an Order in Council, with the regulations taking effect 1 January 2012. The NES are binding regulations that in this instance, replace District Plan rules relating to activities taking place on contaminated or potentially contaminated land. As well as prescribing a nationwide set of planning controls, the NES prescribes a mandated method for determining applicable standards for contaminants in soils, and a consistent approach to site investigations and reporting on contaminated or potentially contaminated land. In order to determine whether any historical land uses on the site have caused land contamination, or the potential to cause contamination, a Detailed Site Investigation (DSI) was undertaken by Opus (attached at APPENDIX E). The DSI identifies that hazardous activities and industries (HAIL) have been undertaken on the site in the past, with Ravensdown having operated a fertiliser storage, mixing and transport facility in that location where the D7 project is proposed. Further, it is noted that many of the present activities on site such as hazardous chemical storage and the transport depot are also defined as ‘HAIL’ activities. As such, the site is defined as a ‘piece of land’ under the NES. The intrusive investigations and laboratory testing undertaken as part of the DSI have identified that the site exhibits some contamination at levels that exceed the selected soil guideline values for commercial / industrial and recreational use, with contamination generally found below 0.5m in depth. As a result, the DSI concludes that the site is suitable for commercial or industrial development. As part of the present proposal earthworks will be required to establish appropriate foundations and site works. The proposed disturbance of soils on the subject site falls within the activities (Clause 5) subject to the requirements of the NES. Given the current use of the site, the proposed establishment of D7 is not considered to give rise to a change in land use, and no subdivision is proposed. The following is an assessment of the proposal against the relevant regulations of the NES

Regulation Explanation / Requirement Activity Status

Clause 5: Application

(1) These regulations— (a) apply when a person wants to do an activity described in any of subclauses (2) to (6) on a piece of land described in subclause (7) or (8): …

Comment The proposed D7 project will involve the disturbance of soils, which is an activity captured by subclause 4 of the NES.

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Regulation Explanation / Requirement Activity Status

(4) An activity is disturbing the soil of the piece of land, which— (a) means disturbing the soil of the piece of land for a particular purpose: …

Comment The proposed D7 project will involve the disturbance of soils associated with land development activities.

(7) Land covered The piece of land is a piece of land that is described by 1 of the following: (a) an activity or industry described in the HAIL is being undertaken on it: (b) an activity or industry described in the HAIL has been undertaken on it: (c) it is more likely than not that an activity or industry described in the HAIL is being or has been undertaken on it.

Comment As identified in the DSI prepared by Opus (attached at APPENDIX E), hazardous activities and industries (HAIL activities) have occurred, and remain occurring on site. As such, the site is a ‘piece of land’ that is covered by the NES.

Clause 10: Restricted Discretionary Activities

(2) The activity is a restricted discretionary activity while the following Restricted requirements are met: Discretionary (a) a detailed site investigation of the piece of land must exist: (b) the report on the detailed site investigation must state that the soil contamination exceeds the applicable standard in regulation 7: (c) the consent authority must have the report...

Comment The DSI attached at APPENDIX E identifies that in some locations the soil contamination exceeds the applicable standards, and Council have been provided with a copy of this report. Accordingly, the proposed soil disturbance in these locations is a restricted discretionary activity.

Table 4 National Environmental Standard Assessment – Westland Milk Dryer 7 Project As identified above, Opus have undertaken a DSI which identifies that soil contamination exceeds the selected soil guideline values for commercial / industrial and recreational use. Accordingly, the proposal has been assessed as a restricted discretionary activity , with Council’s discretion restricted to those matters identified in Regulation 10(3) of the NES.

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6 Assessment of Environmental Effects

In order to assess the actual and potential effects of the proposal, it is necessary to first set out the planning framework that supports development in the Industrial / Commercial Zone, as this is essential to an understanding of the type of development anticipated by the WDP to occur in this location. In this regard, the WDP identifies that the purpose of the Industrial / Commercial Zone is as follows: The Industrial / Commercial Zone aims to permit a wide range of service and industrial activities in three main areas within Hokitika around Walker Place, East Town Belt/Hau Hau Road, and the airport. The zone recognises existing industrial activities as well as providing a framework within which other industrial and commercial activities can locate. When assessing the actual and potential environmental effects of the proposed activity, the purpose and intent of the zone in which it is to be located must be considered. To this end, the proposed development represents continued expansion of the existing and approved milk processing facilities at the Westland factory site. It is therefore considered that the proposed D7 project, albeit non- complying, is appropriately located within the Industrial / Commercial Zone. Another key consideration in respect of the present proposal is the state of the existing environment, this comprising the existing and approved activities operating on the site. In brief, these existing activities involve several milk dryers and boilers, extensive supporting buildings and infrastructure, and all associated transportation and operational activities over the approximately 7.9ha site as illustrated in the aerial image in Figure 4 below. These activities were first established on the site in 1967, with several expansions over the years culminating in the modern and comprehensive milk processing facility that currently exists at the site. In this regard, the existing operational milk processing facilities and the context and zoning of the site are important considerations when assessing Figure 4 Aerial of Westland Factory Site (Source: Westland) the actual or potential adverse effects of the proposal on the receiving environment. To this end, any adverse effects that are relevant to a consideration of the present proposal will be those not already impacting upon the receiving environment. When undertaking a contextual analysis, the existing character of the receiving environment becomes particularly relevant. In summary, while the proposal will clearly have some effects upon the environment, in the balance the overall effects of the proposal are considered to be no more than minor. Furthermore, it is considered that the existing environment is able to accommodate the proposed D7 project for the reasons provided below.

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6.1 Positive Effects To ignore the positive effects of the proposal would be to overstate any adverse effects that may arise from the development. The proposed D7 project carries with it many significant positive effects. For the most part these effects arise from the economic benefits that the proposal will provide to the West Coast. Substantial socio-economic and community benefits flow from Westland’s dairy operations, through the economic activity generated in the town of Hokitika and the farming areas of the West Coast, which result in direct and indirect financial benefits such as employment and improved community infrastructure. As the ‘West Coast New Zealand’ website states: “Dairying is one of the Coast’s top three industries and it’s only getting stronger. The industry has grown dramatically in the past decade as farms have been ‘converted’ and new lands broken in. Milk production has increased annually over the last three years” (http://www.westcoastnz.com/work/work-diary/ 2013) Increases in the amount of dairying on the West Coast has not only resulted in increases in the volume of milk being processed by Westland, but has also provided greater opportunities for the development of value-added products such as paediatric nutritional milk powders. From an economic perspective, the Resource Management Act is concerned with the enabling of economic wellbeing, and the efficient use of resources. In that context, it is appropriate to consider the income and employment opportunities generated by the proposed D7 project. In this regard, the D7 and associated facilities will create some 28 additional full time positions, with subsequent and corresponding socio-economic benefits within the District. As identified, a key consideration in respect of the present proposal is the existing and approved activities operating on the site. The proposed additional dryer will not significantly change the existing industrial character of the subject site. The D7 and associated facilities will ensure the ongoing development of an efficient and well utilised industrial activity and associated infrastructure on the subject site, and the proposed rail siding extension will continue to enhance the rail operations and storage capacity of the dairy factory operations, and therefore assist in minimising the volume of freight carried on the road network. Overall it is considered that there are many positive effects arising from the D7 project, with an increase in employment opportunities, the efficient use of vacant industrial zoned land and infrastructure capacity at the site, the opportunity to add additional value to milk being processed by Westland, and expanded capabilities in terms of the transportation of freight by the rail network.

6.2 Visual Effects Visual effects are those arising from views of the proposal gained from road users and local residents in the vicinity of the site. As previously mentioned the dairy factory activities are anticipated under the Industrial / Commercial Zone. Notwithstanding this, it is acknowledged that the proposed D7 building has the potential to trigger landscape and visual effects. The greatest visual effect will arise from the D7 building height. First and foremost, the height non- Figure 5 Aerial of Westland Factory Site – Looking North (Source: Westland)

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compliance cannot be avoided as this is a functional requirement of the proposed dryer activity. The land north and northwest of the subject site is zoned Residential, with the nearest residential properties to the development site located along Town Belt East. In this regard, it should be noted that Westland own those residential properties at 1 and 3 Town Belt East. The location of D7 towards to the north east boundary of the site ensures that views of the same from all directions will be seen in the context of the existing dryer towers and boilers located at the site. As such, the D7 building will be located centrally within, and seen as part of, the visual ‘frame’ as illustrated in the Proposed Elevations and Indicative 3D Development Plans attached at APPENDIX B and F respectively. Accordingly, any visual effects arising from the D7 building are not isolated or significantly different from that experienced as a consequence of the existing buildings on site, particularly with respect to Dryer 6 which is located directly to the south of D7. Furthermore, the colour scheme for the D7 and associated buildings will be consistent with the non-reflective tones utilised by the existing buildings on site, allowing the D7 to blend in with the existing environment. With regards to the noise-attenuated stack, the relatively slim line profile of the same will be such that the stack will not appear obvious, particularly against a backdrop of sky, the Southern Alps, or the existing buildings and stacks on site. Similarly, the location of the site on a low terrace adjacent to the Hokitika River ensures that for those residents located on the higher elevated terraces in Hokitika the views of D7 and the stack will not appear significant, with the same only representing a small portion of the wider panoramic view. While no screening is to be provided along Town Belt East or Gibson Quay, it should be noted that there is limited if any screening provided along all road boundaries of the site, allowing clear views into the processing and storage operations on site (as illustrated in Figure 6). Therefore, the proposed D7 project will not change the existing situation with regards to the exposure of the site and operations from ‘public places’. The proposed development area is located adjacent to Town Belt East, and the nearest adjacent property is occupied by a BP fuel facility, with the residential properties located along Town Belt East under the ownership of Westland. In any event, the proposed noise barrier will provide some degree of screening of the storage and loading activities from Town Belt East, and this is considered sufficient to ensure any adverse visual effects are appropriately mitigated. It is acknowledged that the present proposal represents an expansion of the existing and consented facilities on site, and Figure 6 View of Westland Factory Site from Town Belt East (Source: Westland) that this incremental development could potentially have an adverse cumulative visual effect. In this regard, we note that Industrial / Commercial zoning anticipates industrial and commercial business activities to establish, with no limits imposed on hours of operation, gross floor area or site coverage etc. We therefore consider that the site is zoned appropriately for industrial activities such as that proposed. Further, any adverse visual effects of the addition of D7 are considered to be minor in the context of the existing activities and buildings established on site. In particular, the ‘over height’ component of the D7 building

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will remain consolidated within a central part of the site, and D7 will, from most vantage points, be viewed amongst the existing taller buildings and structures on site, as opposed to extending the breadth of ‘over height’ development throughout the site. For these reasons, the potential for any adverse cumulative visual effects arising from the present proposal is considered insignificant in the context of the receiving environment. Overall, while the D7 building will be visible from the surrounding area, any adverse visual effects need to be considered in light of the existing and approved development on the site. On this basis, it is considered that the proposed D7 project is consistent with the visual amenity afforded to the surrounding area, and as such the character and amenity of the area will be maintained.

6.3 Transport Effects With regards to the transportation effects associated with D7, it is noted that the purpose of the D7 project is to produce higher value nutritional products from milk already received at the site, and therefore the establishment of the same will not automatically give rise to an increase in transport movements to and from the site. With regards to the proposed extension of the existing rail siding along the southern and eastern boundaries of the site, this is proposed in order to increase the extent of freight that can be loaded at or brought to the site from the east (e.g. the Port of Lyttelton and Westland’s existing operations at Rolleston). It is intended that this rail loading activity will continue to be used for the transportation of milk products (including all products produced by D7), thus negating the need to transport finished product via the road network. While the use of rail to transfer milk products will increase the utilisation (length) of trains, it is not expected to have any significant effect on the required number of train trips per day. In this regard at present the existing rail movements see one return trip per day, with a train arriving at the Westland factory site in the morning, and following loading, departing in the evening. The proposed D7 project will generate demand for an additional 28 staff, working on a four day on four day off shift. In this regard, while the WDP requires a provision of some 22 additional car parking spaces, none are proposed. A total of 206 car park spaces will be provided to service the Westland factory site, and observations and monitoring from Westland staff indicate sufficient spare parking capacity to accommodate the parking demands from the additional staff required by D7. As such, it is considered that the existing parking capacity is sufficient to accommodate the parking demands associated with D7. The existing vehicle access arrangements to the site will remain unchanged, with heavy vehicle movements entering the site via Town Belt East, and exiting the site via Stafford Street near the eastern end of the site. All other vehicle access to the site will be via the existing access arrangements at Stafford Street and Livingstone Street, with these access points leading to the main staff parking area and administration facilities. In summary, as the proposed D7 project will not give rise to any significant increase in traffic volumes on the local road network, and sufficient parking is already provided on site, any adverse effects on the surrounding transport network from D7 are considered to be insignificant.

6.4 Noise Effects As identified in the Acoustic Assessment attached at APPENDIX D, the proposed D7 project includes a large number of noise sources (dryer, loading areas, container handling, rail movements etc). The approach to managing noise from D7, and indeed the entire Westland factory site, is via a noise budget of which Marshall Day have specified ‘budgeted noise levels’ to ensure that appropriate noise levels can be achieved.

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Noise monitoring at the site undertaken by Marshall Day over the last several years identifies that noise levels at the closest residential properties to the proposed D7 development area comply with the

WDP noise requirements and are around 44 – 47dB L A10 . Further, noise levels from the site are highest when there are tanker movements on site, however the overall noise emissions comply with the 50dB L A10 night time noise limit. In summary, the key conclusions reached by Marshall Day with respect to noise arising from the D7 project are as follows: ° The operation of D7 will result in no change to noise levels at the campground and the nearest residential property (1 Town Belt East);

° Cumulative noise levels will continue to comply with the 50dB L A10 night-time noise limit when D7 is in operation;

° Noise from rail movements will continue to comply with the 45dB L A10 resource consent noise limit imposed by RC120033; Of most significance is Marshall Day’s finding that when container handling is occurring overall noise levels will exceed the 50 dB L A10 night-time noise limit, but will comply with the 60dB LA10 daytime noise limit. As the WDP maintains the same noise limit between 0700 hours and 1800 hours on Sundays as during the night time, noise levels associated with container handling will exceed the noise limits at these times. In regards to the requirement for lower noise limits to apply on Sundays, Marshall Day note that: “the current District Plan application of ‘night-time’ noise limits to Sundays and Public holidays has historically been adopted by some District Plans around the country. However, it is now generally expected that most retail activities and many production sites will operate on Saturday and Sunday. In particular, there is a general expectation that dairy facilities operate continuously, especially during the peak milk season, and the current Westland operation is no different” With regards to the above, Marshall Day consider that compliance with the day time noise limits that apply on Saturdays are also applicable and appropriate for activities that occur on Sundays. Such an outcome will ensure acceptable noise effects, and achieve consistency with many current New Zealand District Plans and the relevant noise assessment standards. Accordingly, Marshall Day have provided a recommended condition should consent be granted, with this specifying the noise limits that need to be met to ensure the maintenance of an appropriate noise environment. In order to ensure the proposed D7 project complies with these recommended noise limits, industry standard design requirements will generally be required, albeit a 3m high noise control barrier will need to be constructed around the perimeter of the handling area as identified in the Acoustic Assessment attached at APPENDIX D . With regards to the rail operations occurring along the railway siding, these are largely carried out entirely within a designated rail corridor by KiwiRail. The status of this designation is such that the noise rules in the District Plan do not apply in this circumstance, albeit KiwiRail do have a duty under section 16 of the Resource Management Act to adopt the “best practicable option to ensure that the noise generated by their activities does not exceed a reasonable level”. Notwithstanding, Marshall Day have identified that noise from rail movements utilising the railway siding will continue to comply with the 45dBA L A10 noise limit imposed by resource consent RC120033. In summary, Marshall Day conclude that cumulative noise levels from the site (as a consequence of the D7 project) will generally comply with the District Plan noise limits, except during the daytime on Sundays (and public holidays) as a result of the lower noise limits that apply during these times. Notwithstanding, recognising that most District Plans and noise assessment standards do not differentiate between Sundays and other days of the week, Marshall Day consider that compliance

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with the daytime noise limit of 60dB L A10 on these days will result in acceptable noise effects, and these noise limits can be met by the D7 project.

6.5 Contamination As identified in Section 5 of this Report, as a consequence of historical land use activities on the site, the site exhibits some contamination at levels that exceed the selected soil guidelines values for commercial / industrial use, with the DSI undertaken by Opus (and attached at APPENDIX E) identifying higher levels of Ammonium – N in some of those sampling locations identified in Figure 7. Notwithstanding, the DSI finds that contamination is generally found below 0.5m in depth, meaning that a confining layer of clean material is present across the site, and as a result, the DSI concludes that the site is considered suitable for development of a commercial / industrial activity such as that proposed. In order to provide appropriate procedures for management of the contaminated soils during land development works (in particular the works associated with excavation for the building foundations), the DSI identifies several recommendations to manage the potential effects associated with contamination and to ensure the health and safety of workers on site, with a key mitigation measure being the excavation and aeration of the contaminated clay soils to ensure gassing of the Ammonium- Figure 7 Location of Soil Samples (Source: Opus DSI) N can occur before returning the soils to the site, or disposing of the same off site. It is considered that whilst the proposed soil disturbance may have the potential to generate adverse effects on the environment, and potential risk to the health and safety of contractors working at the site, the procedures identified in the DSI will ensure that all appropriate measures are taken to avoid and minimise any such potential adverse effects.

6.6 Hazardous Substances The WDP places emphasis and reliance on the existing legislative and regulatory mechanisms relating to hazardous substances, as opposed to imposing specific hazardous substance controls within the District Plan framework. In this regard, the only controls imposed by the WDP are those where the use, storage or management of hazardous substances are not already dealt with via other regulatory mechanisms. In this regard, we note that all hazardous substances will be stored, handled and used in accordance with the specific requirements of HSNO and associated regulations. Specific management procedures that will be taken with regards to the design and operation of hazardous substance storage facilities include: ° all areas or parts of the site where hazardous substances (including waste) are stored, used, loaded or unloaded will be sealed, bunded and roofed or covered; ° the volume of any containment system will be 100% of the maximum volume of the hazardous substance when the area is roofed, or 120% when unroofed;

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° the containment system will be designed in such a way as to ensure containment of any hazardous substance that spills due to the collapse of any container (e.g. tank), and the containment from the direct leakage from any container; ° the containment system will be sealed with impervious materials that are resistant to breakdown from the particular hazardous substances which they are designed to contain; ° the containment system and its sealment will be maintained as and when necessary; ° all hazardous substance area will be adequately signposted according to the Code of Practice for "Warning Signs for Premises Storing Hazardous Substances" of the New Zealand Chemical Industry Council. Industry standards will be in place to deal with any emergencies and only certified people will be authorised to handle the substances. Further, Westland operate a Health and Safety Management and Hazardous Substances Management Plan for the Westland factory site, with this detailing the protocols for the storage, use and management of hazardous substances, along with measures to be undertaken in an emergency (e.g. accidental spills or leakages). This plan will be updated to reflect the addition of the D7 project, and as such the implementation of this plan will ensure the safety of staff and the environment during operation of D7. For the reasons outlined above, any potential adverse effects arising from the storage of hazardous substances on the site are considered to be minimal.

6.7 Earthworks / Construction Effects Earthworks are an expected and inevitable component of development projects. To this end, provided the adverse effects of the proposed earthworks can be mitigated to an extent that any adverse effects are deemed to be no more than minor, earthworks can be considered to be an appropriate aspect of development works. The general earthworks operation will be programmed to minimise the amount of ground being exposed during any one construction period and ensure a better control of potential sediment and dust off the site. In this regard, any excavation would typically occur in conjunction with filling to reduce vehicle movements and the duration of time that open excavations are present on site. In addition, any earthworks will need to be undertaken in accordance with the recommendations outlined in the DSI attached at APPENDIX E . The approach to controlling potential erosion and sediment runoff will be based predominantly on the implementation of best management practices, with these matters to be determined as part of detailed engineering design. Erosion and sediment management controls will typically recognise the following principles, thereby ensuring any actual or potential adverse effects of the earthworks are no more than minor: ° Minimising the amount of disturbed material and open ground; ° Controlling run-off water from flowing across the site and disturbed open earthworks areas where practical; ° Separating clean run-off water from adjacent road and properties from on-site runoff; ° Avoiding surface erosion by protecting any exposed areas from overland run-off, effect of heavy rain events and wind blow; ° Preventing sediment from leaving the site by directing water to remain on-site and avoiding runoff and loose sediment from reaching adjoining properties; ° Covering stockpiles and open ground with appropriate material when exposed for a length of time and/or is prone to wind erosion;

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° Inspection and maintenance of control measures, and rectification works as necessary. The construction of D7 is expected to take in the order of 15 months. Whilst construction and land development works are generally an accepted activity, it is important that the effects of construction activities are appropriately addressed. In this regard, given the existing plant will remain operational whilst D7 is constructed, Westland will adopt several construction management measures to minimise disruptions and any adverse effects, with these matters best coordinated as part of detailed engineering design. As with the mitigation of dust nuisance, potential noise nuisance will be controlled by applying a strict specification on the contractor. The contractor will be required to comply with NZS 6803:1999 “Acoustics – Construction Noise”. The applicant is agreeable to this requirement being imposed as a condition of consent. For the above reasons it is considered that any adverse effects arising from earthworks and construction activities can be appropriately addressed through conditions of consent, and will be no more than minor.

6.8 Conclusion The proposed establishment, operation and maintenance of D7 and its associated plant, buildings and structures at Westland’s existing factory at Hokitika will generate some 28 additional jobs, along with delivering efficiencies in terms of operational management, utilisation of infrastructure capacity, and access to the transportation network. The above assessment concludes that while D7 will be visible from the surrounding area, and will generate noise emissions, these adverse effects need to be considered in light of the existing and approved activities operating on the site, and on this basis are considered to be minor. In summary, given the nature of activities currently operating on site, and the mitigation incorporated into the proposal itself, any actual or potential adverse effects of the proposed D7 project are considered appropriate, and consistent with the anticipated character and amenity of the Industrial / Commercial Zone.

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7 Objective and Policy Assessment

Section 104 of the Resource Management Act 1991 requires that the relevant provisions of the relevant operative and/or proposed plan(s), or any other matter the consent authority considers relevant and reasonably necessary, to be considered when assessing an application. In this instance, the WDP is considered to be the Plan of most relevance to an assessment of the application, and as such, warrants particular attention as follows.

7.1 Westland District Plan The following sets out the relevant provisions of the WDP and assesses the proposal’s consistency or otherwise with the same.

7.1.1 Part 3: Objectives The relevant objectives from the WDP are identified in Part 3, with those sections of relevance relating to sustainable communities (Part 3.2), the land resource (Part 3.8), the built resource (Part 3.9), and landscape (Part 3.10). These matters are addressed in turn.

3.2.1 To establish levels of environmental quality for Westland which enable people and communities to provide for their social, economic and cultural well being, while meeting the principles of sustainable management of natural and physical resources. The proposed development represents the continued expansion of the milk processing facilities on the site, with these activities having occurred since 1967. The addition of D7 will see some 28 additional staff employed on site, with subsequent benefits for the local economy in terms of employment opportunities, as well as the subsequent economic benefits associated with the greater capacity to process nutritional dairy products at the site. As such, the proposed D7 project is considered to give rise to significant socio-economic and community benefits. It is noted that Westland hold several resource management authorisations for the discharges associated with the milk processing facilities on site, and the D7 project is able to operate within the conditions and parameters set by these authorisations. Further, for the reasons outlined in Section 6, any adverse effects of the D7 project are considered to be no more than minor. Accordingly, it is considered that the D7 project will maintain an appropriate level of environmental quality, and as such is consistent with Objective 3.2.1.

3.8.1 To avoid, remedy or mitigate adverse effects of land use activities on land and water resources. As identified above, Westland hold the appropriate resource management authorisations, and compliance with the conditions of the same will ensure any adverse effects on land and water resources are appropriately mitigated. While significant earthworks are required to establish the necessary building foundations and railway siding extension, all appropriate construction and sediment management will be put in place to ensure any adverse effects on land and water resources are appropriately mitigated.

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3.9.1 To identify, protect and enhance the distinctive Westland character of the District’s settlements.

3.9.2 To provide for the “intermingling” of land use activities within Westland’s settlements and towns, where this does not detrimentally impact on the amenities, health and safety of residents and workers. Westland’s milk processing activities first established on the site in 1967, and in many respects, these dairy activities can be seen to have played, and continue to play, a significant role in the character of Hokitika. In any event, the proposed D7 building is located on the site so as to deliver operational efficiency with respect to proximity to supporting infrastructure, but also to ensure that the building itself is seen in the context of the existing development on site. As such, the proposed D7 building will not appear as an isolated component at the site, but rather as part of the central frame of development on the site. In this regard, the proposed D7 building will not serve to detract from the distinctive character of the town. The Westland factory site is zoned Industrial / Commercial under the WDP, and the proposed activity is entirely consistent with that anticipated for the zone. For the most part, the proposed development complies with the performance standards for the zone, which have been designed to provide for industrial and commercial activities in a manner which ensures minimal impact on the surrounding environment. Notwithstanding, the nature of the breaches need to be considered in the context of the site and development occurring on the same. In this regard, the height of the D7 is a functional requirement of the drying process and will be seen in the context of the existing development at the site, and any adverse noise effects will be appropriately mitigated through the use of a noise barrier and industry standard noise attenuation measures. As such, the proposed D7 project will not give rise to any significant adverse effects on the amenities of the surrounding environment, and is considered to be consistent with Objective 3.9.1 and 3.9.2.

3.10.1 To ensure development does not impinge on the integrity of landscapes in Westland.

3.10.2 To maintain and protect the existing scenic and open and diverse character of Westland District, dominated by natural dynamic processes.

3.10.3 To ensure that land uses, buildings and development have regard to the natural landscapes in which they are located or seek to be located. The WDP identifies that ‘buildings within Hokitika and other settlements represent important resources for the community ’, and the Westland factory site can be seen to represent a key asset and resource for the Hokitika and wider Westland community. The factory site is appropriately zoned for industrial activities such as that proposed, and the location of the D7 building will ensure that the same is seen in the context of the existing development on the site. As such, the proposed D7 building, whilst being some 35m in height, will not appear inconsistent with the existing development on site, and therefore will not impinge on the integrity of the natural landscape, or the existing scenic, open and diverse character of the Westland District. The proposal is therefore considered to be consistent with the abovementioned Objectives.

7.1.2 Part 4: Policies The policies of relevance to the present proposal are identified in Part 4 of the WDP, with those sections of relevance relating to settlement character (Part 4.2), amenity (Part 4.4), infrastructure and servicing (Part 4.6) and landscape (Part 4.8), with these matters addressed in turn.

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4.2A. A range of activities should be able to locate in the urban areas provided that any adverse effects on the environment or neighbouring land uses are avoided, remedied or mitigated. The Westland factory site is zoned Industrial / Commercial, with this providing the appropriate framework in which industrial activities can locate and operate. The D7 project for the most part complies with the relevant performance standards, with the nature of the breaches relating to height, noise, screening from neighbours and car parking. With regards to height, this is a functional requirement of the drying process, and in any event, the height of the building will be seen in the context of the existing activities and buildings on site. The most significant activity contributing to noise emissions from the site is that relating to container handling, and in this regard appropriate controls are proposed to ensure that any noise effects from the site are appropriate and minor. Given the nature of the surrounding land uses, no screening of the external storage areas are proposed, however the noise barrier located on site will provide some degree of screening from Town Belt East. With regards to car parking, sufficient parking is available on site to accommodate the additional parking demands arising from the D7 project. For the reasons outlined above, and in Section 6 of this report, it is considered that any adverse effects on the environment or neighbouring land uses from the D7 project are able to be appropriately avoided, remedied or mitigated, and as such, is consistent with Policy 4.2A.

4.4A. The effects of activities which can have significant adverse effects on amenities and the well being of residents shall generally be avoided, remedied or mitigated.

4.4B. Noxious, offensive, and/or dangerous activities shall be segregated where there is potential to generate adverse effects on the environment. The site has operated as a milk processing factory since 1967, and Westland hold all appropriate resource management authorisations for the discharges associated with the activities on site. The D7 project is able to operate within the conditions and parameters set by these authorisations, and therefore any adverse effects associated with potentially noxious, offensive or dangerous activities on site are considered to be appropriately addressed. Further, the Westland factory site plays a key role in the economy of Hokitika, employing some 371 staff, and the proposed development needs to be considered in the context of the existing development on site. For the reasons outlined in Section 6 of this report, any adverse effects on the amenities and the well-being of residents arising from the D7 project are considered to be minor, and therefore the proposed D7 project is considered to be consistent with Policies 4.4A and 4.4B.

4.6C. The formation, construction and maintenance of any transport, communications or other service facilities should be carried out in a manner which maintains environmental quality. An important component of the D7 project is the proposed extension of the railway siding so as to provide greater capacity to accommodate additional railway wagons on site, and therefore facilitate an increase in the storage and transportation of finished product that can be undertaken by rail. As identified in the Acoustic Assessment attached at APPENDIX D, the use and operation of the railway siding will continue to meet the relevant noise requirements, and all appropriate mitigation during construction will be taken to ensure the quality of the local environment is maintained. As such, the proposal is considered to be consistent with Policy 4.6C.

4.8A. The continuity of the mountains to sea landscape in Westland particularly in the south of the District and significant landscape elements shall be protected by ensuring development takes into account the landscape setting.

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As identified, the site is appropriately zoned for industrial activities such as that proposed, and the D7 project represents a logical expansion of an appropriate and long established activity within the Zone. The location of the D7 building in close proximity to Dryer 6 will ensure that the same is seen in the context of the developed nature of the site, and therefore will not serve to interrupt the landscape setting of the site and surrounding area. As such, the proposed D7 project is considered to be consistent with Policy 4.8A.

7.2 Summary For the reasons outlined above and in Section 6 of this report, any adverse effects arising from the D7 project are considered to be no more than minor, and entirely consistent and appropriate with respect to the character and amenity anticipated for the Industrial / Commercial Zone and surrounding areas. It is therefore considered that the proposed establishment, operation and maintenance of D7 and its associated plant, buildings and structures at Westland’s existing factory at Hokitika is consistent with the relevant objectives and policies of the WDP.

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8 Consultation

The Fourth Schedule of the Resource Management Act specifies that an assessment of environmental effects should include: Identification of the persons affected by the proposal, the consultation undertaken, if any, and any response to the views of any person consulted (Clause 1(h)). This obligation to report on the consultation undertaken is further clarified by Clause 1AA of the Fourth Schedule: To avoid doubt, clause 1(h) obliges an applicant to report as to the persons identified as being affected by the proposal, but does not oblige the applicant to consult with any person; or create any ground for expecting that the applicant will consult with any person. Prior to the lodging of the present resource consent application, the applicant has undertaken consultation with a view to obtaining feedback from the following neighbouring property owners / occupiers: ° 1 Town Belt East ° 3 Town Belt East ° 4 Kaniere Road ° 6 Kaniere Road ° 8 Kaniere Road It is noted that Westland own several adjoining properties in the immediately surrounding area, including those residential properties at 1 and 3 Town Belt East. In any event, we note that the present proposal will be the subject of a publicly notified consent process, thus providing an opportunity for parties to provide comment on the proposed D7 project. In addition to consultation occurring with neighbouring property owners, meetings have been held with both the Westland District Council and the West Coast Regional Council in early September 2013 to provide information on the proposal and seek preliminary feedback on the same. In summary, consultation on the D7 project began in late 2013, and is expected to continue following lodgement of the present resource consent application.

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9 Resource Management Act 1991

9.1 Part 2 In considering this application the purpose of the Resource Management Act should be taken as the primary point of reference. This purpose is contained in Section 5 of Part 2: (1) The purpose of this Act is to promote the sustainable management of natural and physical resources. (2) In this Act, “sustainable management” means managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people and communities to provide for their social, economic, and cultural wellbeing and for their health and safety while- (a) Sustaining the potential of natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs of future generations; and (b) Safeguarding the life-supporting capacity of air, water, soil, and ecosystems; and (c) Avoiding, remedying, or mitigating any adverse effects of activities on the environment. Applying Section 5 involves a broad overall judgement of whether a proposal will promote the single purpose of the Resource Management Act and this allows a balancing of conflicting considerations in terms of their respective significance. The relevant considerations in this application are: ° The proposed D7 development represents a logical expansion of the existing milk processing facilities on site, with subsequent benefits in terms of higher value product development and efficiencies in terms of the ability to transport additional finished product via the rail network; ° The development of the site will make efficient use of an existing physical resource (vacant industrial land and surplus infrastructure capacity); ° The proposal will generate significant construction and operational employment opportunities, with economic spin-offs for Hokitika and the wider Westland District; ° The activity will not impact on the life supporting capacity of air, water, soil and ecosystems; ° The assessment of effects concludes that any actual or potential adverse environmental effects of the proposed D7 project can be appropriately avoided, remedied or mitigated; ° There are no matters of National Importance from Section 6 affected by the proposal; ° Regard should be had to the efficient use and development of natural and physical resources, maintenance and enhancement of amenity values and the quality of the environment in Section 7 (b), (c) and (f) and in that regard: − The proposal represents a practical and efficient use of the land, taking into account the continued growth in dairying on the West Coast, the existing infrastructure and development on site, and the relationship to the strategic transportation networks (road and rail);

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− The proposal will utilise the existing vacant land in a manner that will maintain the character and amenity of the Westland factory site and surrounding environment, acknowledging that the Resource Management Act does not require that these matters are enhanced; ° There are no known Treaty of Waitangi matters from Section 8 that are adversely affected.

9.2 Section 104D Assessment Section 104D of the Resource Management Act details threshold tests for non-complying activities. (1) Despite any decision made for the purpose of [[section 95A(2)(a) in relation to adverse effects]], a consent authority may grant a resource consent for a non-complying activity only if it is satisfied that either – (a) the adverse effects of the activity on the environment (other than any effect to which [[section 104(3)(a)(ii)]] applies) will be minor; or (b) the application is for an activity that will not be contrary to the objectives and policies of – (i) the relevant plan, if there is a plan but no proposed plan in respect of the activity; or (ii) the relevant proposed plan, if there is a proposed plan by no relevant plan in respect of the activity; or (iii) both the relevant plan and the relevant proposed plan, if there is both a plan and a proposed plan in respect of the activity. (2) To avoid doubt, section 104(2) applies to the determination of an application for a non- complying activity. As the proposal is to be assessed as a non-complying activity, consideration must be had to Section 104D. For the reasons outlined in Section 6, the proposed D7 project is considered to have no more than minor adverse effects on the receiving environment. The proposed addition of a nutritional milk powder dryer and its associated plant, buildings and structures at the existing Westland factory site is considered entirely compatible with the present level of development on the site. In short, the D7 project represents further development of Westland’s milk processing facilities at the site which have occurred since 1967, with the Westland factory considered to be a key asset and resource for the Hokitika community. For the reasons outlined above and in Section 7 of this report, the proposed D7 project is considered entirely appropriate with respect to the character and amenity anticipated for the Industrial / Commercial Zone, and is therefore considered to be consistent with the relevant objectives and policies of the WDP. Accordingly, based on the analysis set out above, it can be seen that the effects of the proposal will be no more than minor, and the proposal is not contrary to the objectives and policies of the WDP; thus both the first and second limbs of the s104D test have been met, and the threshold is passed.

9.3 Conclusion Accordingly, having taken into account all of the relevant considerations in Part 2 that apply in this case, and having considered the effects of the proposal and the relevant provisions from the WDP, it is concluded that the proposed establishment, operation and maintenance of a nutritional milk powder dryer and associated plant, buildings and structures at the existing Westland factory site promotes the purpose of the Resource Management Act.

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10 Conclusion

Westland’s milk processing activities first established at the Hokitika site in 1967, and in many respects, these dairy activities can be seen to have played, and continue to play, a significant role in the character of Hokitika. Overall, it is considered that the proposed establishment, operation and maintenance of D7 and its associated plant, buildings and structures at Westland’s existing factory at Hokitika will give rise to significant positive effects, with an increase in employment opportunities, the efficient use of vacant industrial zoned land and surplus infrastructure capacity at the site, and expanded capabilities in terms of the transportation of freight by the rail network. The above assessment concludes that while D7 will be visible from the surrounding area and will generate noise which exceeds the current WDP standards on Sundays, these adverse effects need to be considered in light of the existing and approved activities operating on the site, and on this basis are considered to be minor. Furthermore, the proposal is not considered to be contrary to the relevant objectives and policies of the WDP. It is considered that the proposal is in general accordance with the purpose of the Resource Management Act 1991.

Accordingly we ask that Council grant the consent sought in accordance with Sections 104 and 104D of the Resource Management Act 1991.

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Appendices

Appendix A Proposed Development Plans

Appendix B Certificates of Title

Appendix C Aerial Photo Package

Appendix D Acoustic Assessment

Appendix E Detailed Site Investigation

Appendix F Indicative 3D Development Plans

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