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Bella Vista properties to be salvaged, repaired, demolished and sold

Tauranga City Council has reached a decision on the future of Bella Vista properties – and is releasing details of the cost of the settlements.

At a meeting on Wednesday, Council approved a plan to salvage, repair, remove and as appropriate demolish the Bella Vista properties.

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.

Council bought all 21 properties from affected homeowners earlier this year after the Bella Vista development failed and problems were found with the houses and sections.

Although the individual purchase prices remain confidential, the Council has approval from the parties to release the total sums involved.

The Council paid a total of $14,063,353.80 to settle with the homeowners and received an insurance payout of $10,550,000 (both figures are GST inclusive, if any), leaving a difference of $3,513,353.80.

Offsetting this, Council retains ownership of the 21 homes. Income from remediating where possible and selling these properties will go towards offsetting the shortfall.

Mayor Greg Brownless said that this week’s decision provided a pathway for a positive outcome.

“We want to resolve this issue properly, and by taking control of the process we can provide certainty to the people of Tauranga,” he said.

“It’s all about doing the right thing for ratepayers.”

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

Other options for the future of the site had also been considered but were less desirable for several reasons, some of them financial, legal and safety related.

Mayor Brownless said there would be consideration given to how to sell the properties in a way that offered the best returns while taking into account housing needs and benefits for the City.

Posted: Dec 21, 2018,


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