Council to buy homes in failed subdivision

Tauranga councillors have voted in principle to buy the 21 Bella Vista Homes which were part of the failed subdivision at The Lakes.

The mayor and council staff informed the homeowners of the decision last night.

Mayor Greg Brownless said the council considered all the options but believed this was the appropriate way forward.

“The homeowners have, in their words, been to ‘ hell and back’. First with the liquidation of the developer and watching work stop on their properties, to then being evacuated and living with the uncertainty of what would happen.

“We have listened to the homeowners, who told us that purchasing the properties was their desired outcome.”

The council will now look at beginning negotiations with individual homeowners.

Homeowner Lee Konowe, reacting to the decision, said they were feeling “slightly better”.

“We had an outcome that breaks down to the council has unanimously agreed to purchase the properties from the homeowners. What we don’t have is a timeline, a date, a quantum formula for how we arrive at the value of these properties.

“So it probably went as far as it could tonight, but it doesn’t resolve for the homeowners their ability to go out and purchase a new property to replace the old one because we don’t know when and how much we’ll be receiving.”

He said homeowners were certainly not at the end of the process.

“Had there been a commitment for actual market value — used as a word — plus damages, that would have been much more satisfying.”

Chief executive Garry Poole said there was no timeframe set for the negotiations but the council would move as quickly as possible to have the matter resolved.

The total cost to the council is close to $2 million since March 9, Poole said. “We know that this has been a difficult situation for homeowners and residents, who have been living in temporary accommodation since March, but we hope that today’s decision lifts some weight off their shoulders.”

The council does not know the cost of buying the 21 properties as this will be part of negotiations.