The remainder of the racecourse cost will be borne by $57m in co-funding from HBRI and New Zealand Thoroughbred Racing Incorporated.
Debated for many years, relocation of the racecourse now stems from its closure since October 2024 because of safety concerns.
Track reinstatement currently taking place will see racing return late next year, filling a void pending the opening of the new facilities.
The track in recent years has had about 14 race-days annually, and is now expected to stage the three-day Hawke’s Bay Racing Spring carnival next September-October, and other races including the Hawke’s Bay Cup Steeplechase and Hurdles races in 2027.
A view from above, the Flaxmere racetrack site as it will appear off Portsmouth Rd after a $77 million development on which work could start in 2026. Image / TW Property
Peters said the closure is threatening the thoroughbred racing industry’s $37m “annual GDP contribution” to the Hawke’s Bay and Gisborne economy.
“The new venue will be a state-of-the-art hub for racing, equestrian sport, and community events,” he said, adding it will be capable of accommodating up to double the race meetings held previously.
“The project enables the existing racecourse site to be freed up for more than 600 new houses, thanks to its existing residential zoning,” Jones says.
The project will create more than 400 full-time construction jobs during its four-year development phase and, once completed, the racecourse is expected to sustain around 270 jobs across the local racing industry.
“This initiative is about more than bricks and mortar,” Jones said. “It is a boost for the regional economy.”
New Hastings Mayor Wendy Schollum said the next steps for the project will be the processing of a Plan Change application for the new racecourse and, subject to the outcome, Resource Consent applications to Hastings District Council and Hawke’s Bay Regional Council.
“This is a big moment for Hastings and Hawke’s Bay,” she said, highlighting that having well-located, already residentially-zoned land for housing so close to Hastings city, on the site of the current racecourse, is an important opportunity.
“It creates opportunities that will have an impact well beyond the racing sector, particularly for employment during the construction phase and then housing availability, as well as the economic benefit that will come with having a quality racecourse that will attract visitors.”
TW Property, the developer for both properties, said housing on the existing racecourse site would be “quality residential”, potentially combined with retirement village living.
Meanwhile, Waipukurau is continuing preparations for the second of three race-days allocated to keep racing going in the region in the 2025-2026 season.
The first was the Waipukurau Cup meeting last month, the next is the Wairoa Cup meeting on February 15, and the Hawke’s Bay Cup will be run on the course on April 26.