Council land sale policy ‘non-negotiable’

Rodney’s chief executive Rodger Kerr Newell, at a meeting on September 24, rejected any suggestion that Rodney District Council might reconsider its plan to sell $100 million of Rodney land.

Cr Zane Taylor said that although Council resolved to sell the land as part of a debt reduction policy in its Long Term Council Community Plan (LTCCP), the playing field had changed.

“As we move towards becoming part of Auckland, maybe we would be better to hang onto the land,” he said. “Post October 2010, any revenue from land sales here would be spent here. A cynic would say that the only reason for selling the land in the current climate would be to suit the CE’s CV going forward.”

Cr John Kirikiri agreed that the goal posts had moved and that Council should be able to revisit the policy.

However, Mr Kerr Newell said Councillors set-up the LTCCP and its spending regime, based on the policy of land sales.

“Unless you are going to reduce that expenditure, we are constrained by the laws,” he said. “If the land sales don’t proceed, then you will have to either reduce services or increase borrowing. You will also be looking at rate rises of 15 to 20 percent next year.
This was all explained to you during the LTCCP process, it’s a bit late now.”

Cr June Turner said Councillors had been given “misinformation”.

Mayor Penny Webster said the discussion “untenable”.

“The best thing for Rodney is to go into the Supercity with the least amount of debt as possible,” she said. “I believe money raised from any land sales here will go into the Auckland pot. This discussion is exactly why we did not want to release the list of properties we were planning to sell because we did not want to revisit everything we do.”

At the meeting, Council received a report for the first period of Rodney Properties Ltd (RPL), the company set-up to manage and advise on the land sales. The issue of executive officer Ray Davy’s departure was raised (see insert), with Cr Grev Walker asking how the company would be run – by the directors or an executive officer?

Directors Jennifer Vickers said a strategy advisor was being appointed.

Cr Grev Walker said he was particularly interested in two titles in Kaukapakapa village, adjacent to the hotel, which were subject to the Structure Plan. At present they were zoned residential. Cr Walker wanted assurances that their potential value as commercial/retail would be recognised in any sale.

Cr Wayne Walker said he was concerned at how well the directors had been briefed on the strategic value of the land listed for sale. He said there was land in the portfolio that was bought for strategic purposes such as reserves, parking, roading and flood mitigation. Kerr Newell said those matters were not relevant to RPL.

Cr Pat Delich said he was concerned that profitable Flat Top quarry was on the sales register and Cr June Turner said that the Atlas site at Warkworth Showgrounds was definitely not surplus to Council needs and should not be listed for sale.