Why are Horowhenua’s State-owned properties selling to private property developers for well below their Capital Value?

This is actually happening up & down NZ however this article by Veronica Harrod focuses on the Horowhenua. How is this fair given the pensioner housing sold at a loss of $1.86 million and the council wallows in burgeoning debt ($68 mill last time I looked) as are councils up and down the land. The new norm. Next of course will be rates rises to cover this debt & woe betide anybody who complains about that. Never mind the obvious mismanagement of funds on high by very well paid CEs everywhere. Our grandparents who helped accumulate these assets must be turning in their graves… EnvirowatchRangitikei


From Veronica Harrod

 

Land and development company owned by council deputy mayor Wayne Bishop purchased former Horowhenua Hospital site in 2014.

A land and property development company owned by Horowhenua District Council deputy mayor Wayne Bishop paid less than a quarter of the Capital Value for Levin’s former Horowhenua Hospital site in 2014.

According to the Quotable Values database the 4.92 hectare site listed as “Other-Health/Medical” which had a Capital Value of $3.8 million was sold to Wayne Bishop Investments Ltd on August 2014 for $968,000.

Cr Bishop also purchased the 48 hectare former Kimberley Hospital site on leasehold land in 2014 from MidCentral Health where he has been developing a staged “gated” 500 housing lifestyle development called Speldhurst Country Estate. In one year the RV of the former Kimberley Hospital site sky-rocketed from $3.8 million to $11.8 million.

Wayne Bishop Investments Ltd has made three other strategic land purchases adjacent to the former Horowhenua Hospital site including, in one instance, one he paid over six times the Registered Valuation (RV) for.

According to the Quotable Value database on 13 August 2014 Wayne Bishop Investments paid $968,000 for a residential-vacant lot in Hinemoa Street which had a RV of $165,000.

Two years later on September 1, 2016 Wayne Bishop Investments paid $1.2 million, double the RV of $520,000, for 2.33 hectares of land next to the former hospital site which means he owns 10.5 hectares of prime real estate land on Liverpool Street.

His company also purchased another 3.6 hectare block of land behind the former hospital site where Hinemoa Street and Awatea Street joins with Waimarie Park.

Last year the council voted in a publicly excluded council meeting to sell the council owned pensioner housing portfolio for a firesale price of $5.2 million to land and property developer Willis Bond which includes pensioner housing units at Waimarie Park.

An Audit NZ report for the Year ending 30 June 2017 presented to the public for the first time at the February 18 Finance, Audit and Risk committee revealed the council lost $1.86 million on the sale of the pensioner housing and 1.1 hectare of land to Willis Bond.

According to a leaked copy of the terms of sale Willis Bond are only required to retain the pensioner housing portfolio as community housing until 2029 but the public don’t know whether Cr Bishop has a conflict of interest or whether he declared a conflict of interest, because voting was done behind closed doors.

Cr Bishop has three land and development companies including Wayne Bishop Investments Ltd, Wayne Bishop Builder and Wayne Bishop that collectively own extensive land and property interests across New Zealand including Horowhenua.

After he was elected Cr Bishop openly stated in a media interview he would represent the “development community”, a euphemism for land and property developers, and revealed he had four Horowhenua land and property developments on the go.

He is now in an influential council position as deputy mayor and deputy chair of the council’s in-house economic development board, which has multi-million dollar vested interests in land and property development and construction industries.

Since he was elected to council in 2011, after securing 519 of 2189 votes, council has become increasingly involved in pushing a land and development agenda – including rolling out an extensive number of land and development projects – to such an extent the district is now referred to as the construction hub of the lower North Island.


Veronica Harrod is a qualified journalist with a Master of Communications specialising in traditional and new media content. Investigating and reporting on political, economic and legislative trends that negatively impact on the day to day lives of people is one of her main areas of interest. Lifestyle content she is interested in includes celebrating our own especially the tireless work community advocates do as civil citizens participating in democracy to keep those in power on their toes. In a media age dominated by a multi billion dollar communications and public relations industry paid to manipulate information to protect and advance the interests of the few over the many there have to be journalists who are impervious to the all pervasive influencial role they have over local and central government and corporate interests.

For more information about Veronica’s professional qualifications see her Facebook page.


RELATED:
Massive Rates Rises Predicted in Horowhenua that will Subsidize Land Developers Reaping Potential Profits of Over $100 Million
THE ILLUSION OF DEMOCRACY – HOROWHENUA DISTRICT COUNCIL IS ROLLING ITS NEW DEPUTY MAYOR AND WON’T BE OPENING THE BOOKS … WHAT’S TO HIDE?

NOTE: Cr Campbell was originally removed from his new post as DM because he had spoken out about conflicts of interest within council as I recall it at that meeting which was preceded by a public protest and also streamed.

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2 thoughts on “Why are Horowhenua’s State-owned properties selling to private property developers for well below their Capital Value?”

    1. Yes. However given the sales clearly approved of from higher up the ladder for them ever to have taken place, one wonders? Seems the Kaipara people have not come off too well at all last time I looked.

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