Kerikeri man Derek Ellis has called on the Auditor-General to investigate the Far North District Council's failure to impose a development contribution when Far North Land Ltd. constructed the building at 51 North Park Drive Kaitaia, leased by Corrections.
The fact that a levy had not been imposed, or paid, came to light in the course of inquiries made by the Northland Age relating to a dispute between the council and the owners of Mitre 10, in the same subdivision, over the contribution demanded for that development. (One pays a levy, one does not, Northland Age April 30).
The council explained its failure to impose a levy as an error on the part of a council officer who had mistakenly believed the property was owned by the Crown and therefore not liable to a contribution.
"Because the land is owned by Far North Land the property is liable for development contributions," Mr Ellis said in his request to the Auditor-General.
"Development Contributions should have been charged by the Far North District Council and paid by Far North Land... Unless this failure to collect development contributions arising from the development at 51 North Park Drive is rectified, ratepayers of the Far North District will become liable for the infrastructure costs arising from this development, and this is the basis of my complaint."
The directors of Far North Land were Far North Mayor Wayne Brown, Kaitaia accountant Eddie Aikin, former Kaitaia businessman Sean Kennedy and Ahipara man Allen Craghill.
Mr Ellis asked the Auditor-General to investigate the non-payment of a development contribution with Park Drive with particular reference to points including the council's failure to impose a levy, the process within the council that allowed that failure to occur, and failure to refer the development to the council's Finance Committee for approval of the level of contributions for which Far North Land was liable.
He went on to raise several other matters.
These included that consideration be given to any conflict of interest arising from the fact that the Mayor was a director of Far North Land; to whether Mr Brown, as Mayor and an experienced property developer, should reasonably have been aware that development contributions would be due; whether Mr Brown had favoured his own interests over those of Far North ratepayers; to ascertain the level of the contribution that should have been levied; to ascertain whether liability for a development contribution was accounted for by Far North Land in the occupancy charges to the Department of Corrections; and to ascertain whether the liability remained outstanding.
He also requested a determination as to whether the council could still impose a development contribution, and whether Far North Land remained liable to pay a contribution.
Finally, Mr Ellis asked that the Auditor-General examine the building consent application, to consider whether any mention on the application of the Department of Corrections might have led council staff to believe that the application was being submitted on behalf of the department, and would therefore be exempt from development contributions, and to determine whether the building consent application was misleading to the extent of being fraudulent.