A buyout offer will be put to affected Bella Vista homeowners and legal proceedings have started against the developer, says Tauranga City Council chief executive Garry Poole.
It's a step forward in the ongoing saga in which 21 houses in the Tauranga development were deemed to be dangerous and were evacuated in March.
Since then it's been revealed the houses, some which had code compliance certificates, were shoddy and unsafe.
Garry says council are prosecuting the "developer" as there are "clear breaches of the building act".
"There's evidence that fundamentals of the building were not being complied with."
Garry says he accepts that council inspectors should not have missed these lapses in the Building Act.
"That's why we are in negotiations with homeowners. When a developer has not gone under about 80 per cent of responsibility is on them and 20 per cent is with the council.
"They still have responsibility."
Developer Danny Cancian has challenged the council to take him to court.
"I want to go to court," he says.
"I welcome the chance to expose the council for what they are in a courtroom"
Homeowners have repeatedly said that market value is the only outcome they will accept but Poole shot down this idea.
"It's [the offer] is not market value," he says. "It's going to give them back to what they spent plus some other kind of incidental costs.
"We believe this is the appropriate settlement."
Garry says they received legal advice which suggested their proposal would be what a court would order if a case proceeded.
He says the buy out costs would be worn by insurers.
"One of the reasons this took a while is we had to take our insurers with us."
Homeowner Lee Konowe says it's too soon to comment fully, but he wasn't happy with the deal.
Konowe is one of two property owners who have already filed legal action against council with the other 19 property owners still waiting for the council offer.
"If this is the offer council provides then existing class action suit may find itself with several new members."
10 comments
TCC pulling a quicky
Posted on 24-07-2018 11:49 | By maddog
Look out people i think Tauranga City Council chief executive Garry Poole is trying to pull a quicky and pull the wool over everyone's eyes
Cringe
Posted on 24-07-2018 12:01 | By Slim Shady
Prosecuting someone for doing something which you then signed off as being tickety boo. That will be a challenge. Surely the Police/SFO should be prosecuting both parties for various failings and crimes?
Really, TCC? How can we have confidence
Posted on 24-07-2018 12:22 | By SML
that ANY building processed by TCC building inspectors, in the same time-frame as the Bella Vista properties, complies with the Act, when the TCC CEO baldly states ".... he accepts that council inspectors should not have missed these lapses in the Building Act.". No, they certainly should NOT have missed any lapses, which makes the stated TCC 20% liability an absolute joke (if not extremely dodgy practice), and a slap in the face of th displaced property owners. It's the building inspectors JOB to ensure properties are safe DURING THE BUILDING, and everyone knows that several houses got as far as receiving their Certificate of Compliance!! The various court cases will no doubt become a major changer of current practice - but will they really uncover just what is going on within the TCC?? I doubt it. It clearly runs deep.
Brave
Posted on 24-07-2018 12:31 | By Told you
The Council is brave taking the developer to court considering the errors they have made,there is a good chance of them ending up with egg all over their faces and the whole proceedings back firing on them.They go where angels fear to tread.
Get it right
Posted on 24-07-2018 12:31 | By rastus
It's going to be interesting to see whether the council will go to court on this one - from what I have seen they are on pretty shaky ground (no pun intended). The main problem is that if they decide to pursue at all costs then it is us the ratepayers who will foot the bill - the insurers will probably save us from that indignity
And so it begins
Posted on 24-07-2018 13:12 | By Kancho
Well good luck with chasing the developer as there will be no money in that only legal costs. But I guess he shouldn't walk away from the mess but doubt anything can be done to him that would count for anything. Wait and see with interest. However the other legal action against the council will cost the ratepayers either way. It's the quantity as to whether the councils offer flies or not. Interesting will be the insurers liability. Still expecting the bill to be in the millions for us all.
Too Much To Ask ??
Posted on 24-07-2018 15:51 | By FRANKS
Will the Council be prepared to name the "so called" Inspectors who failed so badly so those of us in the same area can check if they were involved with our property?
Blood from a stone
Posted on 24-07-2018 18:12 | By bigted
No point chasing rainbows TCC. The only winners will be the lawyers.
Is this real.
Posted on 24-07-2018 18:50 | By Marshal
Does that mean if I get done for speeding or DIC , I am only like 20% liable.. How come I have to pay up to the "MAX" . Wake up and breath in.. lol
I love it.
Posted on 24-07-2018 18:56 | By Marshal
I wonder if a dangerous driver could take the Police to court, for not realizing earlier that they didn't know how to drive.. !
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