Auckland Council has an anti-greenfields 30-year future development strategy to contain urban sprawl but the Government’s housing ‘flood’ aims to do the opposite: encourage more density further out.
Auckland Mayor Wayne Brown versus Housing Minister Chris Bishop: who will win?
It was at the opening of Ockham’s The Greenhouse in February that Brown reiterated the council could not afford to deliver services to far-flung areas on the outskirts like Drury when intensification options were closer to the CBD, such as in Ponsonby.
Citing Drury was somewhat concerning, given Drury East is where NZX-listed giant Kiwi Property Group, Fulton Hogan, and Oyster Capital plan a new Napier-sized city for 60,000 people.
But two years ago, the three developers won Environment Court approval for the scheme on their land even though the council, Auckland Transport and KiwiRail opposed the plans on the basis of funding and noise.
Kiwi has now nailed a couple of good summer seasons of earthworks so will soon begin creating building platforms.
At The Greenhouse, Brown cut the ribbon, applauding Ockham chief Mark Todd on having built his Italian brick-clad masterpiece in the city centre, not expanding urban sprawl. The more residents in the CBD, the better, he said.
“We actually have all the roads and the infrastructure here, as opposed to Drury where if we’re not careful we’ll be paying to subsidise,” Brown told guests at that glamorous summer opening
Yet Bishop has unveiled the Government’s plan to “flood the market” with affordable land for development in a bid to end New Zealand’s housing crisis.
Bishop used a speech to the Real Estate Institute of New Zealand last week to announce planning-law changes agreed to by Cabinet to make it easier and cheaper to get new housing.
The council can tick the 30-year timeframe because its future urban strategy already has plans for three decades.
But Bishop said the Government would make it easier to develop on the fringes of cities. This work is not yet complete and will be progressed with some of the Government’s other infrastructure work.
Bishop will say that “councils will no longer be able to impose rural-urban boundaries in their planning documents. This doesn’t mean they can’t have land zoned for rural use, but it does mean they can’t set hard regulatory boundaries that constrain growth”.
What did Auckland Council say in response to Bishop?
John Duguid, planning and resource consents general manager told this column: “There are aspects of the Government’s announcements that could be at odds with the council’s strategy for managing Auckland’s growth, which is set out in our future development strategy”.
“While the council supports development occurring in greenfield areas as part of a balanced approach to planning for Auckland’s growing population, this should be timed for when new infrastructure can be funded and built, to ensure communities have access to the amenities they need.
“It is also important to make sure that funding to improve infrastructure in existing urban areas, as well as planned greenfield areas, is not put under pressure. We look forward to engaging closely with the Government to make sure any changes to government policy make sense for Auckland.”
Two developers already gazumped the Government with plans to squeeze in and up on the edge:
Talking of Brown, this could be a win for the mayor... eventually.
He is edging towards getting his way with changes to some of the closest wharves to the downtown CBD. But nothing happens in a hurry.
Brown campaigned strongly on freeing up our wharves for public access and his dream moved closer to reality just last month, without a lot of fanfare.
On June 27, the council approved its long-term plan 2024-2034, including writing a master plan for the central wharves. The plan will investigate future opportunities for Queens, Captain Cook and Marsden wharves, the Hobson Wharf Extension and the Admiralty Steps Promenade.
That plan will “seek to unlock some key challenges and opportunities that Auckland has been grappling with for many years, such as creating a more suitable base for cruise ships, separating cruise from ferry activities, allowing Queens Wharf to better fulfil its role as a public wharf, activating the Admiralty Promenade breastworks, and delivering a Papa Kōkiri as envisaged in the City Centre Masterplan,” Eke Panuku said last Thursday.
It will be developed with mana whenua, local boards, key stakeholders, interest groups, and the public.
Brown told this column in response to last month’s move: “Making the most out of our harbour and environment is one of my top priorities. The first major step towards realising this vision will be the Port’s handover of Captain Cook and Marsden Wharves to the council for redevelopment.
“We’re going to transform these central wharves into a vibrant public space that every Aucklander can enjoy.
“The next step is for Eke Panuku to undertake the work required to plan for this redevelopment. In the meantime, we’re looking at interim low-cost solutions – like a swimming pool in Wynard Quarter over summer – that will give the public a taste of what is to come.”
House-building business Swanson Builders of Taupaki has a possible shortfall to creditors of $374,000.
ANZ Bank, Carters Building Supplies, Hire Staff, Inland Revenue, Stella Electrical, Accident Compensation Corporation and Gem Visa are some of the creditors named in the first report out last week.
Bryan Williams of BWA Insolvency said director Ashley Hillary Osborne cited many factors for the financial failure including persistent bad weather, lockdowns, increases in labour costs, inflation, travel costs and insurance.
“The company had to bear expenses that it had not provided for or that was covered by the revenue stream being earned. In addition, significant pre-contract work and related expenses were dedicated to projects that were withdrawn at the last minute, leaving a gap in expected earnings. Other jobs were delayed due to subcontractors not adhering to the scheduled work.”
The first report was also out last week on a second business engaged in construction, this time further south.
The company, 8-9 Construction, only incorporated last February and was a shed-building business whose owner decided to end matters. Inland Revenue, Ngāi Tahu Farming, Panel Tech Solutions, ACC and ITM Ashburton appear as unsecured creditors.
Liquidator Brenton Hunt of Insolvency Matters in Christchurch said the company had failed due to “increased construction costs and delays in consenting processes. The liquidation of related company New Zealand Wagyu Co (in liquidation) affected the financial viability of the company. Therefore the shareholder placed the company into voluntary liquidation.”
Arato Tsujino is the sole director and shareholder but 8-9 Construction has many insolvent relatives: Wagyu Co, Rearing to Go, Whitehart Kurobuta, Wa Shoku, Natural Quality Foods and Blackstone Meats. All are in liquidation.
Shiwase Kobe Cuisine, Shiwase Property, Pacific Peso Investments, NZ Wagyu Breeding and Genetics, 29, Black Burger Hospitality, Black Origin Hospitality, Black Origin Meat Processors (Gore), Blue Sky Meats (Gore), Mad Samurai Corporation, Origin Corporation and BOG BNK are other associated companies.
Allied Concrete, Ashburton Building Supplies and vehicle business De Lage Landen are secured creditors of 8-9 Construction. Unsecured creditors are owed about $100,000.
A large foreign-owned house builder has won an Environment Court case, allowing it to create a 119-lot rural residential subdivision on the outskirts of Kerikeri.
Neil Construction, owned by British Virgin Islands and Asian interests, appealed to the court after the Far North District Council refused consent for its scheme two years ago.
Since then, the parties had talks and the scheme was modified before the court heard the matter and issued a June 21 decision, according to Judge Jeff Smith.
Neil originally sought consent for 124 lots but cut that to 119 lots, said it would create an 18.8ha recreational reserve to be vested with the council, agreed to extend landscape planting and controls on the future built development, the decision said.
The 68ha site is bounded by Kapiro Rd, Redcliffs Rd, Crown Grant Rd and the Rangitane River and was originally part of the Tubbs farm which had its boundaries on the shores of the nearby Kerikeri Inlet.
Neil is ultimately owned by New Zealand-registered company Oregon Group, 80% owned by the British Virgin Islands-registered Callander Group, with the rest in the hands on Singaporean and Hong Kong interests, Companies Office records show.
Oregon’s latest annual report for the June 30, 2023 year showed a number of house-building, timber and forestry interests.
The principal activity of Neil Corporation is the subdivision and development of properties, mainly in the Auckland region, Oregon’s report said while Innova Products manufactures and sells plasticware.
The LumberBank New Zealand and TLB Timber Pty are wholesalers of lumber and lumber products. Winstone Pulp International and Waimarino Forests grow and harvest plantation forests and process logs, timber, woodchips and wood products.
Oregon Group is the ultimate New Zealand parent entity and the ultimate parent of the group is Callander Group of British Virgin Islands.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
The company employed a lot of immigrant workers as contractors now owed money.