Architectural drawings of the renovated chapel in a new $30m housing redevelopment of Island Bay's heritage-listed Erskine College.

Plans have been unveiled for a $30 million 94-townhouse development at Wellington's heritage complex at Erskine College in Island Bay.

The red-stickered derelict former Catholic boarding school has been under threat of demolition for years, with redevelopment hingeing on Save Erskine College Trust's demands that the chapel and gardens be saved.

Property developer Ian Cassels revealed the latest plans on Thursday in the designated special housing area.

SUPPLIED Architectural drawings of the early childcare facility in a new $30m housing redevelopment of Island Bay's heritage-listed Erskine College.

He said the project would include a range of terraced houses and apartment units on parts of the 1.8-hectare property, a $7m restoration of its historic chapel and refurbishment of its wedding/function centre, a new early childcare facility and cafe, and restoration of the Reverend Mother's Garden.

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Cassels, of The Wellington Company, said the project would offer a significant boost to Island Bay's economy and housing, breathing fresh life into the dilapidated site.

FAIRFAX NZ Erskine College in Island Bay was red-stickered as earthquake-prone in 2012.

Earthquake strengthening and restoring the Chapel of the Sacred Heart, built in 1930 and considered one of New Zealand's finest gothic-style chapels, would ensure the Category 1 historic building's long-term future, he said.

It would resume its use as a wedding venue, which stopped when the chapel and adjoining convent building were red-stickered by the Wellington City Council in 2012.

The company had until mid-September to lodge a resource consent application to the council.

Cassels hoped the community would support the project, which would be his last shot at developing the tricky site.

"We are doing something that I believe is incredibly good. We are setting up a charitable trust to manage the chapel long-term and will underwrite it until it is functioning in a sustainable way."

Island Bay Residents Association president Vicki Greco said the association was pleased Cassels' company had decided to make plans available and it would allow the community to talk about any issues that arose around the plans.

The Wellington Company is working with the Island Bay Residents Association to prepare consultation material for residents, to be displayed from August 18 at 132 The Parade, Island Bay.

Heritage NZ central region general manager Claire Craig said the organisation hoped to maintain a "constructive dialogue" with Cassels about his proposal.

"We also look forward to hearing the views that the council, as decision maker, receives as feedback from the community on the proposal for the chapel and the removal of the main building."

A council spokesman said it received a formal application for the development only last week.

"Our planners still have several weeks in which to consider the application – which is complex. If consent is given, then the developer will have 12 months to get the project under way."

The 2013 Housing Accords and Special Housing Areas Act stipulates a streamlined consenting timeframe, including a reduction in notification provisions and appeal rights.

Councillor Andy Foster, chairman of the transport and urban development committee, said early estimates that put the costs of the houses between $500,000 and $700,000 might appeal to first-home buyers.

When asked about the impact of more cars coming into Island Bay, Foster said it was important to look at the big picture, as the city's population was growing quickly.

Tommy’s Real Estate sales director David Platt described the section as a "uniquely contoured northwest-facing piece of land", which was sheltered and sunny, and had its own micro climate.

"Given there is an under-supply of new housing opportunities in the immediate city suburbs, this development will attract interest from those in the market, as well as those possibly at the very early stages of looking to step down from the large traditional family home.

"Ninety-four new properties for sale are not enough volume to impact on the supply and demand factors of the current market, especially assuming the completion phase is likely to be staged to some degree, and no doubt a year or more away."