Counting the cost of Bella Vista

After mounting pressure Tauranga City Council has revealed the affected Bella Vista Homes owners received $14 million in a buy-out deal.

The council revealed the price after

laid complaints with the ombudsman. Offsetting the price tag was an insurance payout of $10,550,000 leaving a ratepayer-funded shortfall of $3,513,353.80.

The Bella Vista Debacle began in March, 2018, when 21 homes in a failed subdivision were evacuated due to safety concerns from Cyclone Hola.

From there it was revealed the homes had significant issues and were deemed dangerous or affected, meaning they could not be lived in. Four of the homes had full code compliance certificates. Charges have been filed against the developer and two other contractors with the next court appearance in February.

Adding that figure to the $3.2m cost the council incurred in legal fees and other associated costs means the Bella Vista lesson has left ratepayers $6.7m out of pocket.

The council revealed more than

$900,000 was spent on building and geotech reports, $700,000 was spent on security,

$600,000 was used for homeowner support,

$280,000 was paid to investigators and

$227,000 was spent on communications. Looking ahead the council has agreed to salvage, repair and remove the Bella Vista properties that have sat dormant for nine months.

Mayor Greg Brownless said the decision came down to either selling the buildings and land ‘‘as is’’ or salvaging what was possible and remediating the land before sale.

‘‘We want to resolve this issue properly and, by taking control of the process, we can provide certainty to the people of Tauranga. It’s all about doing the right thing for ratepayers,’’ he said.

A staff report proposed that work start on-site as soon as possible to take advantage of summer weather.