A newly released report shows discussion about selling Rotorua's reserves for housing was started by the Government.
The report, which was presented to Rotorua's mayor and councillors in a confidential part of the May 27 council meeting last year, was released in Thursday's council meeting, after a request from Local Democracy Reporting under official information law.
The report, Temporary housing options under investigation, sought the council's in-principle support of the use of council reserve lands for temporary housing.
It stated that in April 2021 the Ministry of Housing and Urban Development reported to Housing Minister Megan Woods and Associate Housing Minister Poto Williams on "proposed actions to address urgent homelessness and motel use issues" in Rotorua.
Housing Minister Megan Woods. Photo / George Heard
It said the ministry and Kāinga Ora was focused on temporary housing solutions while long-term housing needs were addressed, and the ministry's report to the ministers included enabling the use of reserves for temporary housing.
"Minister Woods has directed officials to further investigate giving [the] council a time-limited power to use reserve land for temporary housing as an additional tool that could be utilised if required."
Time-limited power referred to a local or Government bill that would enable the council to put housing on reserves for a limited period. It would account for the rules in the Reserves Act, which do not allow housing on reserves.
It said council officers had identified about 82 hectares of reserve land across the city that could yield about 160 temporary homes.
Public housing being built in Rotorua. Photo / Andrew Warner
The report discussed that either a local bill or Government bill would be needed to free up the reserves for temporary housing, with an estimated time frame of six to 12 months "unless the Government decides to use urgency or a truncated select committee process".
It said a report from the ministry to Woods in June last year would cover whether the council should be given time-limited power to use reserves for temporary housing. It said the decisions in the report would "directly inform any recommendations to the minister".
The report acknowledged the decisions in it were "likely to generate a high level of controversy in the community".
The report was not originally part of the agenda for the May 27 council meeting last year but mayor Steve Chadwick tabled it as an urgent item not on the agenda, to be discussed in a confidential part of the meeting.
Rotorua mayor Steve Chadwick. Photo / Andrew Warner
Chadwick said it was "so that we can instruct the chief executive on our view - our political view - before he gets into discussion with the minister".
Macpherson said he believed confidentiality was to protect personal and commercial interests.
"Political interests don't require protection. It's best they're dealt with in the public domain."
Chadwick said public discussion could "damage the public interest".
"I think you have to trust us on this one to make sure we are protecting the commercial interests."
All councillors voted in favour of adding the item to the agenda except Macpherson. When the council voted to move into public exclusion, all councillors voted in favour.
According to the minutes relating to the report, which were released on Thursday, the council voted to support, in principle, revoking and disposing of the listed reserve land for housing, subject to further assessment. It was moved by deputy mayor Dave Donaldson and seconded by councillor Trevor Maxwell.
As the council, unlike others around the country, does not record individual votes for and against unless an elected member asks for it, the motion is simply recorded as "carried" - but that does not necessarily mean it was unanimous.
Last Thursday, the council also released another report, from the October 14 Strategy, Policy and Finance Committee, titled Guidance on Land Disposal.
It said although a draft local bill to use reserves for temporary housing was "commenced", it had become clear permanent disposal of the sites would "achieve better longer-term community outcomes".
Those outcomes related to improving Rotorua's open spaces and creating permanent housing, particularly "transitional and public housing".
The report stated a Government bill to enable this would be the fastest, but it would "represent a significant intervention by Central Government" and "restrict the ability for a locally led approach and [the] council's ability to influence outcomes".
It said the government would only consider that option if there was demand from other councils to use reserve land for housing, which the ministry was assessing.
The report listed 13 sites under consideration, which reflected much of the final list agreed for consultation last week. However, five sites were eliminated between the October report and the May decision - Waitawa Place Reserve, Ranginui St Reserve, Pūruru Reserve North, 61 Kawaha Point Rd and 434 Pukehangi Rd.
Turner Drive Reserve and 117 Clinkard Ave were added.
On Tuesday, council district development deputy chief executive Jean-Paul Gaston said Woods asked the council to look at whether it had any land that could be made available for housing, including temporary housing.
He said the reasons the sites were eliminated included infrastructure – such as stormwater – constraints, as a result of mana whenua feedback, or the sites not having reserve status.
Rotorua Lakes Council district development deputy chief executive Jean-Paul Gaston. Photo / Andrew Warner
He said the Clinkard Ave site had a "redundant" toilet block, which was removed this year, so the site was "no longer required for reserve purposes" and could be included in the proposal.
Gaston said Turner Drive Reserve was larger than required, which was why it was included as part of the proposal.
After the meeting, Chadwick was asked in what way discussing the May 2021 report in public would "damage the public interest" or "protect commercial interests".
Via the council communications team on Tuesday, she said her comment regarding commercial interest was made in error.
"Preliminary discussions often don't reflect what is eventually put forward for consideration and decision-making.
"We don't go out to the community with half-developed proposals and cause unnecessary confusion or concern, as happened when information was leaked before the proposal to use some reserve sites for housing was finalised.
"That does not serve the public interest. There is an amount of due diligence that has to first be done to ensure there is a fully developed, viable proposal before making it public."
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