By Tony Gee
KAIKOHE - A process that could result in the sale of millions of dollars' worth of ratepayer-owned assets in the Far North has begun.
The district council aims to bail out of up to 100 per cent of its interests in subsidiary company Far North Holdings, and reap $14.5 million.
The sale of all the company's investment and residual assets in three stages over two years could result in council debt being reduced by about $9 million, after the council buys some of the assets itself.
Public consultation on the process starts next week and ends on November 30.
The first stage of the scheme, approved by a council meeting in Kaikohe this week, involves the council buying back infrastructural and community assets from the company, a local authority trading enterprise.
The funds will come from the redemption of $5 million of convertible shares.
These assets include the valuable Paihia carpark, wharf and information office, ferry ramps at Opua and Okiato, and the council service centres at Kaikohe and Kaitaia.
The second stage would involve selling all the holding company's assets apart from those at Opua.
These include the Bay of Islands airport at Kerikeri, a $1.8 million commercial property in Mt Wellington, Auckland, five coastal sections at English Bay in the Bay of Islands, the maritime building at Paihia, a subdivision, a depot in Kaitaia, shopping mall land in Kaikohe, the town's airfield, a telecommunications site at Houhora and council service centres at Kaeo and Rawene.
These assets and properties could realise about $5.5 million.
An independent report on future needs for the airport at Kerikeri will also be sought before any sale.
A third and last stage involves the sale of Far North Holdings shares in its residual assets, all Opua-based. This could yield another $4.5 million.
These assets include a 100 per cent shareholding in the company now building a large marina at Opua, the marine industrial park, powder store, cruising club and Post Shop building, the wharf (subject to guaranteed public access), Lyon St and Hilltop properties, and the existing marina and business.
Other assets around the district, such as maritime facilities at Mangonui and in Whangaroa Harbour, may be managed by community trusts (Mangonui) or by a community board (Whangaroa).
No agreements for the sale of any company property or shares will be signed until the council considers a report.
Although the intention is to reduce the council's investment stake in the company to zero, it is also reserving an option to keep an interest of below 50 per cent if this becomes attractive within two years.
District secretary Steve Wilkinson says in a report to the council that the estimated return on divestment will be $14.5 million, which is $2.5 million more than the original cost of shares in Far North Holdings.
The council will also have received dividends of $2 million from the company since its formation.
Not everyone on the council is happy with the proposed sales.
Kaikohe councillor Laurie Byers says the fact that Far North Holdings has made a multimillion-dollar profit after only two years is a good effort.
"These assets won't be there for future generations of ratepayers."
He would vigorously contest any proposed sale of the Kaikohe airfield because of its strategic value as a ratepayer asset, and predicts a "violent reaction" from local Maori if the airfield is to be sold.
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