Forced rates sale pulled at last minute

Kevin Ramsay, chief financial officer, released details of the eight properties where the council was chasing $300,595.02 in unpaid rates. Photo / Brett Phibbs

Auckland Council all ready to auction Belmont property when the $59,393 bill was suddenly cleared.

Auckland Council's first big forced-sale property case sparked by unpaid rates did not go ahead as planned when the money was suddenly paid.

Early last month, the council said a section at 2/57 Northboro Rd at Belmont would be sold after a High Court ruling following $59,393.74 rates being owed.

The property was to be auctioned at 9am on April 22, the first of a list of properties across the city which would be sold because of unpaid rates, the council said.

But a council spokesman said the matter had been settled.

"Our legal people confirmed at the time that the High Court has received full payment and therefore the property has been withdrawn from sale. The distribution of any money is dealt with by the High Court. There are no other auctions scheduled at the moment," he said of seven other properties which appeared on a list for unpaid rates and where sales were possible.

James Hassall, the council's litigation and regulatory manager, said the Belmont outcome was great for all concerned and a timely reminder that those with rates owing should not leave it until it gets to the point of legal action. Swift action had been promised on the Belmont case.

"The owners have made no rates payments since March 31, 2005 and have not responded to any council contact including reminder notices since 2012," the council said.

"This is the first of a historical list of large overdue rates that the council is working through using a court process."

Kevin Ramsay, chief financial officer, then released details of the eight properties where the council was chasing $300,595.02 in unpaid rates. Activist Penny Bright's house in School Rd, Kingsland had unpaid rates of $33,598.45, yet the council lost its High Court action against her because it made a technical flaw in its evidence. That resulted in Bright being granted an application to set aside the judgment allowing the council to force the sale of her place.

Ramsay's list also included $25,319.61 owed on a New Lynn commercial premises, $74,402.02 owed on a Henderson commercial premises, $41,881.78 owed on a Sandringham house, $16,470.80 owed on a West Auckland premises and $10,282.86 owed on a Manurewa residence.

Eight cases
In early April, the council said rates were owed on:
•Northboro Rd, Belmont, $59,393.74 (settled pre-auction)
•Cooper St, Arch Hill, owned by trust, $21,404.80
•School Rd, Kingsland, owned by Penny Bright, $33,598.45 (council lost court case)
•New Lynn commercial premises: $25,319.61
•Henderson commercial premises: $74,402.02
•Sandringham house: $41,881.78
•West Auckland premises: $16,470.80
•Manurewa residence: $10,282.86
[Source: Auckland Council]