Tauranga City Council files Bella Vista charges in court, serves parties

The Tauranga City Council has filed charges in court against parties involved in the failed Bella Vista Homes development at The Lakes.

The charges relate to non-compliance with the Building Act and were served on the parties on Friday, the council said in a statement.

The council said the charges were filed on August 2 in the Tauranga District Court.

"The council will not be commenting on the prosecution while it is before the court."

When asked who the parties were, the council refused to comment.

The liquidators of Bella Vista Homes confirmed they had been served with the council's legal proceedings.

"It's fair to say that given the financial situation that the company finds itself in, the council would be looking at other options as well as the company for these proceedings," liquidator Rhys Cain said.

Council chief executive Garry Poole said last month that the council was looking into prosecuting Bella Vista Homes for non-compliance with the Building Act.

Poole said at the time that the goal of the prosecution would not be to recover money from the developer.

"I don't think that would be a realistic option. Bella Vista Homes has gone into liquidation, and I understand the liquidators are already seeking large sums from the developer," he said in July.

"This is about non-compliance with the Building Act."

The Tauranga City Council itself is facing two separate lawsuits from Bella Vista homeowners.

Two of the homeowners the Bay of Plenty Times approached for comment on Friday said the same thing: "We have been advised by our lawyers to stay away from comments re this. It's a separate issue. So no, do not wish to give a comment."

Bella Vista Homes went into voluntary liquidation on November 30 last year, leaving behind unfinished houses and millions of dollars in outstanding debts to creditors.

In early March this year, 21 Bella Vista houses at The Lakes were evacuated by the Tauranga City Council, and all but one of them remain unoccupied, fenced off and guarded by security.

On June 6, Tauranga councillors voted in principle to buy the 21 homes, and late last month the council made an offer.

In response, 19 of the homeowners announced they would be filing legal proceedings against the council, but said they were still willing to negotiate to avoid court.

Another lawsuit had already been filed and served on the council on behalf of the other two Bella Vista households, who said they were also proceeding as planned despite the offer.

Meanwhile, the latest liquidators' report, released on June 27, showed Bella Vista Homes had just $28 with which to pay more than $4 million to creditors – unless the liquidators could recover money from two former directors and a series of related company transactions.