Bella Vista: More details about council's closed-door remediation decision revealed

Looking up from Lakes Boulevard towards the Aneta Way houses. Photo / George Novak

Along with the 21 properties in the failed Bella Vista development, Tauranga City Council also bought a neighbouring section.

The council paid $290,200 for 1 Aneta Way, which was part of the Bella Vista subdivision but was vacant land and did not have the issues of its neighbours.

The councillors were advised that buying the property, which had a valuation of $240,000, would be "strategically beneficial" as it would allow easier access to other properties and simplify the remediation.

It would later be sold and the purchase was expected to be cost-neutral.

Buying 1 Aneta Way was recommended in a confidential briefing paper from the December 18 closed-door meeting where the council decided to remediate and sell the 21 properties in Lakes Boulevard and Aneta Way which were considered dangerous or affected.

The council has previously declined to release the document on commercial sensitivity grounds, but has now released a redacted version in response to official information requests.

It has also revealed the price of its contract to salvage the top levels and demolish the basements of the 16 Lakes Boulevard houses.

The contract with Shane Moore Services is worth just under $110,000 including GST but the contract was live and the council expected variations as the work continued.

The council has not released an overall budget or cost estimation for the remediation on commercial sensitivity grounds. It was expected to be loan-funded.

As well as the demolition, there would be other costs for repairs to bring any remaining building work up to code - including the five Aneta Way properties - as well as for stabilising the land and building retaining walls.

The council hoped to cover its costs, including the $3.5 million of the $14m purchase price not covered by insurance, with the sale of the remediated properties. Anything not covered would be funded from risk reserve.

The document also revealed the council was under pressure to make a fast decision, due to risks identified by staff of both the unretained slope slipping in a downpour and of public sentiment turning on the council if it was not seen to be taking action.

The two options rejected - putting the decision on hold and doing more detailed research into remediation options and costs or looking into getting the properties valued for sale as is, where is - were each estimated to cost around $300,000.

While there was an "initial cost" associated with the remediation and sale option, staff assessed it was the best option for cost recovery, and was low-risk.

On Tuesday the council denied accusations from social media that it was demolishing some of the buildings to destroy evidence potentially relevant to its upcoming court case against parties involved in the Bella Vista development.

It also heard the results of the Ministry of Business, Innovation and Employment's investigation that found the council made significant failures in relation to the Bella Vista development and two other builds, but the issues were not systemic.