Apartments and townhouses are being developed by DDL but receivers have taken over the project after financial trouble. Video / Michael Craig
A territorial authority, roading and water utilities, real estate agents, a building materials supplier, concrete, civil engineering and consulting businesses are claiming money from a failed South Auckland housing developer.
Creditors of DDL Homes Ormiston and DDL Homes Ormiston 2020 (in receivership, liquidation and voluntary administration) are claiming $55.7 million,according to reports from insolvency experts out this week.
But those experts running the businesses involved in the 122-property Flat Bush scheme on Ormiston Rd say it's too early to say who will get what money - if any.
A schedule of creditors from liquidators Baker Tilly Staples Rodway Auckland shows 34 businesses want money.
Auckland Council, Auckland Transport and Watercare Services are on the creditors' list. Authorities and utilities are owed money by housing developers for building consents and resource consents, when they do regular compliance inspections, pass stages of work and for reserve contributions.
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Watercare charges for installing infrastructure like meters and AT charges for roading and footpath physical works.
Auckland Council said: "We charge these fees if the new development requires us to provide new or upgraded infrastructure for transport, footpaths, roads and intersections, parks, park facilities and sports grounds, drainage systems and stormwater mitigation and community facilities."
A DDL townhouse project on Ormiston Rd, Flat Bush late last month. Photo / Michael Craig
Lines business Vector is also a creditor. It charges for new connections and for development contributions from companies like DDL.
A spokesperson for the company said: "When you add a new connection to the electricity network, you will pay a contribution towards the capital investment we make in the infrastructure that supports overall network growth. This development contribution is in addition to paying the cost of the connection at the point of supply."
Real estate agents Five AM Realty of Howick and Mountfort Estate Agents of St Heliers are on the list. Places were advertised to buyers who paid deposits of 10 per cent but who now say the building scheduled will be more than a year behind if the first townhouses are delivered by October.
Law firm Steindle Williams Legal of Ponsonby are creditors, along with funder Vincent Capital.
Building supply retailer Carters of East Tamaki, Design Engineering of Timaru and testing business Geolab of Papamoa are creditors along with Harmya Engineering Consultancy of Blockhouse Bay and Helen Mellsop Landspace Architect of Mount Albert.
HSCNZ of St Lukes, Kardon Consultants of Devonport, Khar Consultants of Auckland, KTK Concrete Pumping of Hillpark in Auckland and NZ Civil Structure of East Tamaki appear on the list.
Peppertree Consulting of Oraki, Stamford Insurance of Shortland St, Spectrum Aluminium 2011 of Whitiora and White Associates of Wellesley St are also on the list.
The Herald began reporting on trouble with the DDL sites for some time, including last year when a digger was used to wreck an almost-finished $600,000-plus home.
Last October, Auckland Council sought orders against DDL Homes and DDL Estates for work at its project where land stabilisation of the Hera St site off Flat Bush School Rd created problems.
The Environment Court issued three orders after the council raised alarm at the standard of works and the environmental consequences if it was allowed to continue.
Chief Environment Court Judge David Kirkpatrick issued the three orders against DDL Homes and DDL Estates, also noting that work had an environmental impact.
Those companies are separate from the two failed businesses which are the main subject of this article.
