Subdivision gives tribe hope on debt

A hearing on a proposal to subdivide and lease 139 sections at Matauri Bay in the Far North has been adjourned to allow the developer to provide more information.

The application, if successful, aims to allow another party to shoulder up to $6 million of debt owed by the financially embattled Matauri X Incorporation to Bridgecorp Finance and Instant Finance.

Matauri Bay Properties, a joint venture company involving Matauri X and Blue Water Eco Developments, are seeking consents from the Far North District and Northland Regional Councils to develop a residential subdivision on incorporation-owned land about 500 metres back from the Matauri Bay beachfront.

An original proposal for 188 subdivided lots to be developed in more than one stage was dropped to 139 lots in a single stage when a joint council hearing into the application began in Kerikeri.

The sections, each ranging in size from about 1100sq m to 1400sq m, would be subject to a 52-year lease agreement with the joint venture company.

The 14ha area involved in the proposed subdivision is small in terms of the total 549ha Matauri X block.

Planners and consultants from both councils have recommended approving consent for the project, subject to a number of conditions.

The proposal attracted more than 130 submissions, most of them in favour. A four-member panel hearing the application is awaiting more information from the development company, but has indicated it will treat the matter urgently.

Matauri X and its 430 shareholders have been in danger of losing much of their tribal land at Matauri Bay through loan default since an investment in a Whakatane mineral water bottling company failed.

Matauri X had borrowed from Bridgecorp and Instant Finance to invest in Eternal Waters in 2001, but could not repay the debt when the company went into receivership.

It had mortgaged tribal land at Matauri Bay as security without the knowledge of most of its shareholders.

Instant Finance became a priority first mortgage holder over prime coastal land within the main Matauri X block.

Court-appointed Matauri X administrator, Kevin Gillespie, told the Herald that if the subdivision application by Matauri Bay Properties succeeded, "We have someone lined up who can take out Bridgecorp and Instant Finance".

The arrangement would relieve Matauri X of its obligation, now totalling around $6 million, to the two finance companies, Mr Gillespie said.

He would not name the party who he said was prepared to pick up the Bridgecorp and Instant Finance debt.