Property Insider: Here comes Santa Claus (and Precinct); Classic chief on subdivision challenges; Auckland Council’s $244,631 bill to Gulf Harbour Country Club’s owner

Here comes Santa Claus - or actually, the Precinct Property chiefs, watching Te Komititanga Square’s new Christmas tree; land subdivision challenges explained by Classic’s Peter Cooney; and Auckland Council wants money for its work after a big blaze. Property Insider is about to go outside and find the sun, so enjoy the last column of 2024.

It’s beginning to look a lot like Christmas, especially when Te Manaaki, an 18.4m tall tree, rises in the heart of “Precinct Town”.

Outside Commercial Bay at Te Komititanga Square, two Precinct bosses watched that tree go up last week and sharp-eyed Herald photographer Michael Craig caught that.

Chief executive Scott Pritchard and marketing, communications and experience general manager Nicola McArthur stood in Precinct’s building above the square, gazing down.

Viv Beck, Chief Executive of Heart of the City, and Scott Pritchard, CEO of Precinct Properties, with Te Manaaki's Christmas baubles. Photo / Supplied

The tree is reported to have a million-dollar price tag.

Auckland Council paid $800,000 while Heart of the City, the central city’s business association, and Precinct paid the rest.

At the window above, Nicola McArthur and Scott Pritchard of Precinct watch the tree being assembled. Photo / Michael Craig

Precinct said: “We are thrilled to share that from November 23, a magical new Christmas tree, Te Manaaki will make its spectacular debut - at a majestic 18.4m, decorated with over 10,000 LED lights, 4000 pōhutukawa flower decorations and over 200 giant baubles.

“A gift for the city through a partnership between Precinct and Heart of the City, with support from Auckland Council and the city centre targeted rate, it will transform Te Komititanga in lower Queen Street into a vibrant festive hub, drawing people into the city centre and creating a welcoming focal point for celebration and connection.”

Host and singer Anika Moa performs before Auckland's new Christmas tree Te Manaaki, lit up for the first time on Te Komititanga Square (formerly Elizabeth Square) on lower Queen Street. Photo / Supplied

And what did Scott think of it all?

He said it was another step forward for the city centre and “the last 10 days have been amazing with concerts, cruise ships and a growing number of tourists”.

So, there’s the very good cheer. Now, bring on the festive season.

Subdivision woes

Classic Group director Peter Cooney.

But before we get too happy, let’s consider for a minute creating sections for much-needed housing.

“Good luck getting large-scale subdivision over the line in three years!”

So says Peter Cooney, Tauranga-based Classic Group director.

His business and the NZ Super Fund has not created any titles three years after the Kaha Ake partnership was formed.

Cooney said getting land ready for housing was hamstrung by so many barriers including the Resource Management Act and other regulations and red tape.

In fact, land subdivision was so difficult that in one case in his city, it had taken eight years, he explained.

“That’s the reality of doing subdivisions. Most take two to three years from scratch. Anyone will tell you that.”

The Super Fund/Classic partnership Kaha Ake did not aim to build homes, he stressed “purely to provide land titles.”

Classic Group director Peter Cooney. Photo / Carmen Hall

And given the challenges, he said it wasn’t at all surprising that it was three years and no titles had yet been created. But that didn’t mean extensive work wasn’t going on and milestones weren’t being achieved, he said.

“We have thousands of sites being consented and in the process of being refined which will make a big difference. But it takes time and that’s the story.”

Cooney also wanted to update changing staff numbers at Classic and how the business had downsized to cope with what he has called a “crap” market, with low demand for new homes.

He initially said earlier this month that 60 staff would be made redundant but last week updated that number to 20 with a further 46 staff not being replaced.

Fires - then the bill

Firefighters from across Auckland battled the club's headquarters fire in May. Photo / Hayden Woodward

And while we’re in the rough with land, Auckland Council wants $244,631 from the owners of Gulf Harbour Country Club for demolishing burnt buildings after clubhouse fires in May. There were two fires within three days at the abandoned golf course.

The council was forced to demolish the buildings as “a matter of urgency” due to the safety risk and because the company’s directors didn’t initiate demolition when asked.

John Kang, the council’s principal regulatory and enforcement prosecutor, said this month a bill was sent three months ago.

An invoice for $244,631.78 was issued to Long River Investments Corporation on August 16, Kang said.

Companies Office records show Long River is owned by The Pheonix [sic] Trust whose sole shareholder is Greg Olliver.

“The council is engaged in discussions with Long River Investments Corporation and their legal representatives regarding the debt. While discussions are ongoing, the council is unable to share further details to avoid prejudice or disadvantage to those negotiations,” Kang said.

In July, the Herald also reported the council was seeking the money.

“Council had to meet costs in excess of $200,000 for engineering, demolition, disposal and security purposes. We will require to be reimbursed in full for these and an invoice will be with you shortly,” Wilson wrote in a July 12 letter.

The once-great club suddenly shut in July last year leaving members asking about fees.

The council is also seeking to liquidate Gulf Harbour Country Club for failing to pay more than $25,000 in rates. The club has faced community complaints since its closure in July last year.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.