15 February 2019

Media: Daily Post

Topic: Ian Street subdivision

Enquiry

Initial enquiry from reporter:

I'm doing a story following up this development being built by Rob Davies (see HERE for previous story run in Daily Post). It's designed at for first home buyers an all the buyers are first home buyers. There's only going to be 26 now instead of originally planned 29 because of issues with the council and all properties - a brand new 3-bedroom house - is costing the owners-to-be $450k.

Its taken two years and they're pretty frustrated but it's finally getting started. There have been major setbacks by the council. They have had to reduce the amount of properties to 26 because of drains that needed to be included. They also said projects which have

I'm seeking comment from someone about

• Why this has taken so long
• What does cheaper brand-new homes for first time buyers mean?
• What would a development like this subdivision look like for Rotorua?

Subsequent clarification provided by reporter re unfinished sentence in initial enquiry and what was meant by questions:

Sentence missing info: "They said projects had been pushed back as a result of a slow process of the engineers brought in. Are these engineers council employed?"

- Questions re cheaper houses for first time buyers is in regard to affordability, is this good for young buys in a city with the a housing crisis?

- Re the development question - more broadly, what would it look like for Rotorua to have more subdivision in regard to the housing crisis?

- Issue: Delays with engineers, foundation design put in was said to take 7 days but took 24 (and counting), just a lack of urgency and bringing in more engineers despite one giving the all-clear.

Response

From Operations Group Manager Henry Weston:

Sometimes there are issues that challenge engineering solutions and take time to work through and we acknowledge that the effort to arrive at sustainable and resilient designs can be frustrating for some developers. However, Council has a responsibility and duty of care to ensure developments are designed and constructed properly and meet critical legislated requirements. We always endeavour to make the process as problem-free as possible.

There have been a number of issues with the proposed Ian Street development that we have had to work through with the developers and we will continue to work directly with them, rather than through the media.

We are always open to working with developers to help them achieve their plans. Rotorua needs more houses and Council is keen to encourage affordable housing to be considered in the mix.

Regarding the engineers who have been involved (this is information rather than a quote):

Council uses internal engineers as well as external specialists to provide specific advice on some matters. They all work on behalf of Council to ensure that appropriate methodologies and engineering designs are implemented on new developments.

Reporter was referred to real estate sector regarding questions around what cheaper brand new homes mean for first home buyers