History of Kawerau Enterprise Agency

KEA was set up to facilitate and promote business development in Kawerau.

The KEA concept was mooted by Graham Ogilvie of Tasman Pulp & Paper Co in 1984, following his visit to Britain where he had seen Enterprise Agencies backed by corporates. A steering committee was set up to develop the idea. It included Ron Wells, Graham Ogilvie, Ron Hardie, Bill Lockyer, Allan Baker, Bev Adlam, Frank Duxfield and Lyn Hartley.

KEA was formed as an Incorporated Society, registered on the 14th March 1985. The initial funding was made up from:

Kawerau Borough Council      $25,000
Tasman Pulp & Paper Co         $25,000
Tasman Forestry                        $12,500
Tasman Lumber                         $12,500
Kawerau Business Assn           $  8,076
Govt (CEIS)                                  $25,000

This provided funding for the operations of KEA.

KEA Industrial Park:

As the initial funding was a temporary measure, with Tasman due to dismantle the Tasman Lodge, KEA set about raising capital to build an Industrial Park. Graham Ogilvie of Tasman Pulp & Paper Co saw this as a measure to assist the community to adjust to the forth-coming reductions in manning levels at the mill. Community Bonds were issued at high interest rates to attract ownership in the proposed development. This did not raise the full amount of capital required so, Tasman (now Norske-Skog Tasman) provided a loan to KEA for up to $1 million dollars, secured over the building and land of the Industrial Park. The terms of the loan were that it could be taken up partially or all as cash or guarantor facilities, for an indefinite period of 0% interest rates. All excess revenue generated by the Park was to be held in Trust until such a time as the Community Bonds were repaid first, and then the Tasman loans were to be repaid.

A number of enterprises started in KEA 1 in 1986. This building filled quickly so a decision was made to build KEA 2 alongside. This was funded with another issue of Community Bonds and a further interest free loan from Tasman. The Bonds were repaid as they fell due in 1990-1992.

The Park enjoys a high level of occupancy and gives KEA a significant profile. It is envisaged that a private venture (KEA 3) will be built within the next 2 years on land sold.

The income from the Industrial Park funds KEA and surplus was used to repay the original loan. The Industrial Park has further land available for development, and KEA is working with both Whakatane and Kawerau District Councils and local land owners to secure additional land for lease and industrial development.

KEA Centre:

In the first year, 1985, KEA took a head lease over the “Tasman Lodge” for use by small-scale businesses and part of the Tasman House for its own offices. The head lease arrangements were that KEA maintained the buildings, and paid a retainer of $1,000 pa plus 50% of the rents (received from sub tenants) back to the landlord, Tasman P & P Co. This had a two-fold effect in that it created a direction of independence and maintained the assets of the town while creating the new business locations needed within the town.

“Tasman House” became surplus to Tasman’s requirements so KEA purchased the land and buildings for approximately $100,000 on 1st July 1989. The purchase was funded by a mortgage taken out by KEA. This mortgage was repaid from Government funding within 3 years.

This site was further enhanced during 1990, when KEA added the ex Matahina School building as a Resource Centre. This facility is currently under repair.

The KEA Centre provides office space, which has at the present time a high occupancy rate. It also has meeting facilities and equipment available for hire.

KEA Inc:

The total KEA complex has provided an income for KEA and funded KEA activities. There is a mix of long and short term tenants. In its lifetime, KEA has assisted new businesses to set up within the KEA Centre, KEA Industrial Park and throughout Kawerau.