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Tauranga City Council settles with Bella Vista homeowners

Author
Newstalk ZB, Bay of Plenty Times,
Publish Date
Sun, 9 Dec 2018, 4:07PM
It has been eight months since the families were forced to evacuate their homes. (Photo / NZ Herald)

Tauranga City Council settles with Bella Vista homeowners

Author
Newstalk ZB, Bay of Plenty Times,
Publish Date
Sun, 9 Dec 2018, 4:07PM

LISTEN TO HOMEOWNER LEE KNOWE TALK WITH LARRY WILLIAMS ABOVE

A Bella Vista homeowner says the past eight months have "just been hell" and they are relieved to finally be able to move on.

Tauranga City Council has today settled with all 21 Bella Vista homeowners, who were forced to urgently evacuate in March.

An incoming storm prompted safety fears for the structural integrity of the properties, despite approval by building inspectors.

In a statement released this morning, the council said it reached a settlement by negotiation, whereby the council agreed to take ownership of the properties.

The terms of the settlement were confidential but the parties have worked constructively in reaching this resolution that enables the owners to move on from Bella Vista, the statement said.

Homeowners spoken to by the Bay of Plenty Times expressed great relief but reiterated that they could not speak about the particulars of the agreement.

One homeowner, who spoke on condition of anonymity, said: "We're f**king relieved it's over and done.

"It's just been hell. It's going to be good to move on."

Seeking a new home was now the next step for many, the homeowner said.

Tauranga-based barrister Nathan Smith, who represents 18 Bella Vista homeowners, said it was a "very long" day of discussions that went long into the night before a resolution was reached.

"Many of the owners are feeling positive and some are already looking at new homes," he said.

"They are relieved that it has been resolved and are optimistic they can get on with their lives."

Smith said the council's chief executive Marty Grenfell was "very courteous to all of the owners".

A Tauranga City Council spokeswoman confirmed the council had settled with all homeowners and said they would all need to withdraw the court action.

The council will take ownership of the properties before Christmas and it was yet to be determined what will happen with the land and properties.

When asked what the total cost of the buyout was and what method was used to determine this, the spokeswoman said, in a written statement, such details were confidential.

When asked whether ratepayers would be paying for it, the spokeswoman said: "we are unable to comment at this stage".

How much the council previously budgeted for the settlements also directly related to the confidential settlement negotiations, she said.

As of September 18, total costs following the Bella Vista fall out came to $2.8 million and included building, geotechnical and structural assessments; solution assessment; legal advice; communications; security; costs of investigations and homeowner support for accommodation and reimbursements.

In July, Tauranga Mayor Greg Brownless estimated it would cost more than $10 million to buy the 21 Bella Vista homes.

Brownless previously said the council wanted to learn from the investigation to ensure the Bella Vista saga would not happen again.

Today, he said he was pleased to have settled the matter outside of court.

Prosecution under the Building Act was still ongoing against the various defendants.

On October 11, Tauranga City Council announced it would investigate its building inspection team to provide answers, "warts and all".

The investigation joins another already being run by the Ministry of Business, Innovation and Employment.

The council was also facing one lawsuit and the threat of another from homeowners who rejected the initial offer to buy their homes at cost.

Previous offers from the council to homeowners were rejected.

- Additional reporting Zoe Hunter

The unravelling of the Bella Vista story

- November 30, 2017: Bella Vista Homes went into voluntary liquidation, leaving behind unfinished houses and millions of dollars in outstanding debts to creditors. 
- March 9, 2018: Tauranga City Council orders emergency evacuation of 21 Bella Vista houses at The Lakes. 
- June 6, 2018: Tauranga councillors voted in principle to buy the 21 homes. 
- July 26, 2018: The council makes an offer, which is rejected. 
- August 1, 2018: A group of 19 Bella Vista homeowners file legal proceedings against the council. 
- August 17, 2018: The council files charges in court against parties involved in the failed Bella Vista Homes development at The Lakes. 
- September 3, 2018: The Ministry of Business, Innovation and Employment announces its investigation into the failed Bella Vista Homes development. 
- October 10, 2018: The council announces its own investigation.
- November 1, 2018: The council settles with homeowners

 

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