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Renwick Richmond Seddon 42 High St 2 Wakefield St 19 Poutama St 03 572 5173 03 Page 22 - 26 575 7195 03 544 5936
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Judge orders TDC to pay $1.8M Ratepayers and development contribution payers will have to pick up the cost of a $1.859 million payout to developers, after the Tasman District Council lost a legal battle involving the Oaks Business Park subdivision on Lower Queen St. The High Court ruled last week that the council is liable to pay defunct developer VPCL full market value of $1.48 million for land council purchased in 2009. The council had contested the valuation of the 1.6 hectare lot it required for a drainage reserve and agreed to pay about $120,000.
Justice Clifford ruled that council will have to pay three years of interest payments on the $1.48 million, as well as around 75 per cent of the legal costs, potentially escalating the total cost to over $2 million. A spokesperson for Heartland Bank, Emma Quantrill says the dispute stemmed from a disagreement over the criteria for valuing the land. Heartland Bank took over the ownership of the land after the developers failed to meet loan repayments. VPCL and council had agreed in 2009 that the purchase price would be determined
Simon Bloomberg
Senior reporter Reporter
simon@waimeaweekly.co.nz by an independent third-party valuer selected by the two parties. Telfer Young’s Wayne Wootton calculated the land was worth $1.48million, but the council later rejected that amount and had it revalued at around $120,000. However, Justice Clifford ruled that Wayne’s valuation was correct and stated
that he “is a careful and competent valuer whose approach in these circumstances was logical and careful.” In contrast, the court ruled that the approach used by the valuers subsequently employed by the council to revalue the land, Francis Spencer and John Hancock, was based on a “fundamental flaw”. “I therefore conclude that Mr Wootton’s approach to preparing a market valuation of Lot 22 was appropriate,” Justice Clifford ruled.
SEE PAGE 2
Bring on the snow Nearly $50,000 worth of ski and snowboard gear was bought at the Rainbow Sports Club’s annual sale on Saturday, and organisers are hoping that will result in more people up the ski field when it opens in July. Hamish Neill, a committee member from the Rainbow Sports Club, says the sale broke all records. “It was absolutely brilliant and very well attend-
ed. We had tonnes of gear, we were at absolute capacity.” Rainbow Sports Club takes a 20 per cent commission from the sales, but Hamish was unsure of how much was actually raised because they still had to cover their own costs too. Nonethe-less, he was still happy with the turnout and hopes that success will filter on to the ski field this winter.
Shay Mosdell of Hope at the Rainbow Sports Club ski and snowboard gear sale on Saturday. Photo: Phillip Rollo.
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