Troubled project back up for sale

The failed Marsden City development is back on the market in a receivership sale after a buyer could not be found through a tender process. Photo / Michael Cunningham

The failed Marsden City development that promised more than 2200 homes, new businesses and industry - but left ratepayers with a $5.4 million headache - is back on the market after the 83 hectare site didn't sell by tender.

Developer Oliver Scott was behind Marsden City through his companies North Holdings Development Ltd, NH Infrastructure Ltd and North Holdings Investment Ltd. Mr Scott had said the development would have a mixed-use town centre comprising about 765,000sq m of land, commercial and industrial buildings and residential units.

Stage one of the development was to include 22,000sq m of retail space and 20,000sq m of other commercial activity, 250 residential house lots, 150 apartments above retail and a variety of industrial uses. There was to be up to 2200 residential units. However, the three companies were placed into receivership on May 21, but receivers BDO Auckland would not say how much was owed by the firms. Mr Scott could not be contacted for comment.

The site was for sale by tender, with tenders closing on August 27, but real estate company Bayleys has confirmed the property did not sell by tender and was now up for sale by negotiation.

The 83ha block of land is made up of 88 titles - with resource consent granted to subdivide an additional 45 residential sections. A sealed roading network throughout the land has been completed, with preliminary infrastructure services laid for telecommunications, and waste water connections.

Last year the Northern Advocate revealed that sections of the stormwater and wastewater systems on the multi-million-dollar Marsden City development had "failed", causing pipes and manhole covers to slump, a situation that could end up costing several million dollars to repair.

Whangarei ratepayers will have to pick up the $5.4 million bill to repair infrastructure subsidence at the failed development while Whangarei District Council tries to recoup the money through the courts from those who designed, built and signed off the scheme.

The area has acid soil, a type not usual in New Zealand, which changed the acidity of the groundwater and damaged the concrete pipes, leading to a number of compounding problems, including drop-outs around manholes. This was discovered after the assets had been signed off and vested in council, WDC waste and drainage manager Andrew Carvell said.