De­vel­oper has past fail­ure

Kapi-Mana News - - FRONT PAGE -

‘‘It’s to­tally dif­fer­ent to what’s cur­rently done in the area,’’ Mr Mc­Neil told coun­cil­lors.

Costs would also be kept down by build­ing the whole de­vel­op­ment at once, buy­ing ma­te­ri­als in bulk, he said.

Homes are fore­cast to cost be­tween $230,000 and $320,000.

In 1995, Mr Mc­Neil’s com­pany, Pa­cific Homes, was put into liq­ui­da­tion ow­ing $1.4m to Na­tional Bank and $1.65m to un­se­cured cred­i­tors.

The com­pany had built 750 homes in the Wellington re­gion over a decade, many in Porirua for Hous­ing Cor­po­ra­tion.

A re­ceiver’s re­port crit­i­cised Mr Mc­Neil for pay­ing too much for land that was dif­fi­cult to sell, and for us­ing another com­pany he owned, Elite Fi­nance, to top up mort­gages to Pa­cific Homes buy­ers who had max­imised their credit else­where.

The Raiha St de­vel­op­ment would also let peo­ple buy homes on 100 per cent credit – 70 per cent from a bank and 30 per cent from Mr Mc­Neil’s back­ers, a char­i­ta­ble trust.

Mr Mc­Neil told Kapi- Mana News his past fail­ure had noth­ing to do with the Raiha St de­vel­op­ment, say­ing Pa­cific Homes’ demise came about be­cause it was owed money by oth­ers.

‘‘At the end of the day I’ve got 40-odd years in this in­dus­try. Like all de­vel­op­ers, we all go through hard times and we get slated for it, which is un­fair. We put a lot of ef­fort into th­ese pro­grammes.’’

The Gov­ern­ment was cry­ing out for af­ford­able homes, but no­body had been will­ing to build them, he said. He had suc­cess­fully built af­ford­able hous­ing de­vel­op­ments in Saudi Ara­bia and Europe over the past decade.

Like the Raiha St de­vel­op­ment, they mixed rental and owne­roc­cu­pied prop­er­ties, apart­ments and houses, and were de­signed to mix young and old res­i­dents, he said.

‘‘We’re try­ing to give back to the com­mu­nity. It’s not just a mat­ter of pro­vid­ing houses for peo­ple to buy. It was ac­tu­ally for rental ac­com­mo­da­tion and so­cial as­pects.’’

The homes would be wellinsu­lated, keep­ing en­ergy costs down, and were close enough to

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