Delta #EpicFail —Noble Subdivision : [rephrased] Conflict of Interest

Election Year : The following opinion is offered in the public interest. -Eds

—

Received from Christchurch Driver [CD]
Sun, 13 Mar 2016 at 6:00 p.m.

Dear Readers and What –if Mobsters

Your correspondent is given to understand there are several of you who enjoy his posts, which is certainly gratifying to him, if not to the DCC. However readers are taxing mistresses, they demand fresh and current material for their reading pleasure.

Discerning readers of taste and sophistication, of which you are without exception, are firmly of the view that there is nothing as old as yesterday’s news, and tonight’s post is indeed recycled and somewhat elderly. But wait, as Noble Investments Ltd said to the Judge Osbourne, I can explain why I have reneged on my obligations….

This week Mr Graham Crombie did more than re-release Delta CEO Grady Cameron’s press release. He advised What if? that he considered this post below “defamatory” to Mr McKenzie. And said that in effect he will soon have a letter from his lawyers about this. Although, What if? hasn’t actually seen the letter yet. We think it is in Mr Crombie’s other pocket, tangled up with some minties wrappers and the latest Harcourt’s update on the Noble Subdivision mortgagee sale process. Yes, that document has gone missing too.

This Correspondent was cut to the quick. Him ? Defamatory ? A Tom Kain Klone ? Forsooth, he faints at the sight of his own blood !

Friends, Romans, Dunedinites, I come not to bury Mr McKenzie but to praise him. (Eventually).

Here is the post, with all traces of defamation removed…. for Mr Crombie’s reading pleasure….

****

Certain of you, have commented how in recent Council meetings DCC GCFO Grant McKenzie has several times now said he has a “conflict of interest”, when the question of the DCHL financial performance is raised by Councillors. He does not look comfortable in those situations.

OK, so what is this conflict of interest ? Mr McKenzie is the financial eyes and ears of the DCC. He is employed to preserve and maintain the financial stability of the DCC. This includes managing the hundreds of millions of debt that the DCC and its DCHL companies have; and having full oversight of the DCHL companies, which are in theory meant to be significant revenue generators for the DCC. (But, as Mr McKenzie admitted to Cr Lee Vandervis recently, DCHL companies will generate ZERO income (ie dividends) to the DCC for the next three years at least). However, despite the lack of dividends, they are still very significant DCC assets and it is completely right that Mr McKenzie should know in detail what is going on at DCHL.

This correspondent does not see how a conflict of interest can arise.

DCHL companies, owned by DCC, are for the sole purpose of generating a financial return to ease the rates burden. The historical amount of contributions provided by DCHL is shouted from the rooftops at every available opportunity by DCHL boosters. To this correspondent, there are only two ways in which Mr McKenzie could have “a conflict of interest” as he describes it. One is if the actions of the DCHL companies exceeded the risk profile that Mr McKenzie felt was appropriate for a DCC owned entity. The other is if the DCHL Companies were not in fact providing full or accurate information about their activities or intended activities to DCC or the elected representatives, and placing DCC at risk that way.

Readers, and Mr McKenzie, need to remember that Mr Larsen said in his report that the DCC needed to have a very low threshold for commercial risk, and much better communication. Mr McKenzie is there to make sure that DCHL doesn’t exceed a very low risk threshold and to tell us what he has found there. Tick the boxes for those items.

But who is paying Mr McKenzie ? The answer is the DCC. Therefore Mr McKenzie does not have a conflict of interest. He has a clear obligation to disclose to Council and ratepayers anything that is of concern at DCHL. He is not paid by council to shuffle from one foot to the other and claim a conflict of interest when asked questions of DCHL financial performance.

We should spare a thought for Mr McKenzie. He is the senior DCC staff member that has to represent the DCC’s interests. Those interests, first and foremost are to ensure that those DCC owned DCHL companies operate with a very low threshold for commercial risk. On the other hand, against him are legions of DCHL directors, who, if nothing else, appear extremely good at sugar coating bad news, or cloaking it in such a way as to make discerning the facts extremely difficult. (Mr Crombie, please read the Auditor-General’s report before you go reaching into your pocket). Add that to the subtle and not so subtle peer pressure, and it is easy to see Mr McKenzie has a tough job safeguarding the interests of ratepayers in respect of DCHL.

Refer to the video record (Part 1 and Part 2) for the full council meeting of 22 February 2016. This correspondent believes there is a (very) high possibility Mr McKenzie has not been told the full facts about Delta at Noble, or it has been spun to him with a few key, inconvenient facts omitted. If this is in fact correct and he acknowledged this, and then advised the city what he does know and provided an accurate assessment of the actual risk to ratepayer funds against the allowable “very low risk” threshold, he would have the support of DCC upper management and probably a job for life – if he wanted it.

Mr McKenzie would not have to look too far to find inspiration or a precedent in Dunedin. Just a couple of blocks away at the Hospital in fact. In 2008 the recently appointed Health Board Chief Financial Officer, Robert Mackway-Jones, discovered some unusual transactions that was of course the $16.9M Michael Swann fraud. Mr Mackway-Jones didn’t let up, pushed the issue and found that neither the Board Chair, Mr Richard Thomson, nor the Board CEO, knew of the transactions. Mr Mackway-Jones was the hero of the Swann case; and Mr McKenzie only has to present the facts to Dunedin ratepayers to achieve the same status.

This correspondent understands Mr McKenzie is already well regarded within DCC upper ranks. But if he did this he would be so popular with Dunedin ratepayers he could run for Mayor next time around….

Dunedin ratepayers just need Mr McKenzie to represent their interest, and forsake the tea and cakes, and mutual backslapping with DCHL Directors.

This will mean clashes with the DCHL directors at times……..

Tis food for thought, mobsters (as the Clash would say…. Revolution Rock, London Calling, 1979).

—

Related Posts and Comments:
● 11.3.16 Delta peripheral #EpicFail : Stonewood Homes & ancient Delta history
● 6.3.16 Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions
● 6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
● 5.3.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
● 4.3.16 Delta —Noble Subdivision #EpicStorm Heading OUR WAY
● 4.3.16 Delta #EpicFail Noble Subdivision : Councillors know NOTHING
● 2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
● 1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
29.2.16 Healthy views Monday midnight to 6:00 p.m.
● 29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● Gold Band Finance Prospectus No. 31 Dated 22 April 2015
View this 126pp document via the NZ Companies website at: https://www.business.govt.nz/companies/app/ui/pages/companies/321896/documents — go to Prospectus uploaded 23 Apr 2015 14:33

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

█ For more, enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

*Image: the-rudy.com – The Clash Revolution Rock w2 tee

Delta peripheral #EpicFail : Stonewood Homes and ancient Delta history

Received from Chrsitchurch Driver [CD]
Fri, 11 Mar 2016 at 1:35 a.m.

Your correspondent is going to meander down some tangential subdivision side streets tonight (not the main collector road, the excavator won’t fit on those….) and consider the curious case of Stonewood Homes.

It was probably inevitable given the very shallow gene pool that South Island companies fish in for independent directors, that a name would pop up that had also had some previous form with Delta.

However, before we excavate that particular trench, let’s consider why the shoring gave way on Stonewood, why the temporary support from the bank buckled and the subsequent structural failure – (the engineering metaphors are flying thick and fast tonight….)

Your correspondent is very bemused at the vast sums that a large number of building and engineering companies seem to be able to generate – in the negative. An internet search shows a long and regular list of failures. (Delta Civil Division would doubtless have joined them had it not had ratepayer funds to prop it up). Hartner Construction in 2001, about $20M, Wellington Construction in 2012 (unknown), Mainzeal Construction in 2013 (between $60-130M, dependent on if related party transactions can be unwound) and, closer to home, Southland’s own Amalgamated Builders (also with a branch in Dunedin) who managed to lose $20M in just two years when they bought a reputable Auckland company, Goodall Construction, renamed it Goodall ABL and then proceeded to destroy it in 2001.

There is some illuminating information online that shows the insane amount of risk that companies in the construction sector assume for what appears to be very little reward.

In the ABL Goodall case, property commentator Bob Dey described Goodall ABL as “a victim of trying to win market share on no margin, with a maximum guaranteed price contract in place”. Quite why anyone would seek to perform somewhere between $60-80M of work in two years for no return sounds like Delta-level stupidity, and certainly, the result was the same : ABL Goodall went so comprehensively broke, mainly with subcontractors’ money, that it was a major catalyst for the Government of the day to introduce the Construction Contracts Act in 2002 which provided some protection for Subcontractors. Proof that Southlanders do have some uses other than milking cows (readers, I jest).

Delta may yet provide compelling evidence for the Government to remove the “power of general competence” that Territorial Authorities received from the Government in 2002 that started many down the path towards illusory piles of gold that vanished in a mirage, along with a lot of public funds.

Memo To Mr Crombie : The CCC have admitted defeat and are trying to sell their Delta equivalent, City Care : why not join up and make it a two-for-one deal ?

But back to Stonewood. A trio of heavy hitters arrived in February 2014 to help fix the Stonewood Homes brand. In the press release it was noted that in 2013, Stonewood had consented 407 homes, had a turnover of $133M, and was aiming for 500 consents in 2014.

Your correspondent now will do something unheard of – making excuses for Delta…. as follows :

Building houses is not the same as civil contracting or commercial building. Those sectors all indulge in unique one off projects, with different specifications, different designers and engineers who have different standards. Lots of risk with ground conditions, legal disputes are legion.

But “group” housing is just different variations on the same cookie cutter. Standard designs, tweaked a little here and there, flat sites, lots of repetition, production line type processes. Houses started and finished around 14-16 weeks. Deposits before you start, a sales force to keep the numbers flowing. Any amount of back costing and analysis off repetitive designs to check what the numbers should be. It’s all been done before, lots of other companies are doing it so “benchmarking” your company against your competitors is easy.

Stonewood weren’t building difficult or expensive homes : Their average house cost around $325,000 in 2013. (Turnover of $133M for 407 homes).

Receivers KordaMentha confirmed that Stonewood had built up “significant” debt since the earthquake. Let us assume that Stonewood’s losses began in 2012 continuing in 2013, 2014, 2015. The loss is currently $30M. Your correspondent understands that the ASB is owed $5M and that typically, of the 110 houses underway at any one time, only 30 were profitable, and this was known within the company.

That Stonewood were unable to make any money at all, but instead went deeper into debt over a four-year period of huge demand is certainly testament to some Delta-level management deficiencies. One, or one and a half years of losses is grave but understandable, two to three is indefensible, and four years just plain carelessness !

Assuming an average turnover of about $115-120M per year (ie a peak turnover of $133M in 2013), this means that each year they lost $7.5M on average. (It was probably less in 2012, a lot more in 2015).

Put another way, on every house they built, over a four-year period, they lost around $21,000. Yes, they can definitely have a seat at the Delta table. And one Stonewood Director has sat at that table before, and that is Mr Jim Boult.

Now Mr Boult, while no Tom Kain in terms of litigation, certainly knows his way to his lawyer’s office, so this correspondent shall confine his comments to the facts :

Mr Boult, you may recall, had a 50/50 Joint Venture (JV) with Delta on the failed Luggate Development, where Delta lost $5.9M. Delta’s terms there were similar to Noble : A $5M advance to cover the subdivision work, payable only when the sections were sold.

Mr Boult utilised a valuer on behalf of the JV who had previously valued the land for his company. The valuer, in calculating the value of the land assumed a figure of $55,000 per section for Development costs. The actual cost was $105,000 per section. The valuer assessed the value of the land Delta bought a 50% share in, at $10.7M. There were potentially 172 sections that could be developed on the land. Six of the 172 sections were sold. The remaining land, with (a relatively small amount of) Delta’s improvements, was eventually sold…. for $1.5M. This information is all contained in the Auditor-General’s Report (14 March 2014).

A small but noteworthy detail included in the Auditor-General’s report was that the terms of the Joint Venture meant that Delta staff were not paid for any time they spent on the JV or the project, unless it was directly related to the Civil Work. A Project Management firm, Signal, was employed to manage the project. However Mr Boult sought and received $5,000 per month “for his time” spent on the Luggate JV.

Back to Stonewood, it turns out that Mr Boult was unable to make any difference to turn around Stonewood’s fortunes in 2015. Mr Boult’s enthusiasm for Stonewood : “I am truly delighted to be the chair and help guide the company in its future direction” lasted just 12 months. Nonetheless he obviously saw something he liked at Stonewood as he confirmed last week that he had quit as a Director of Stonewood on 1 February 2016, because, in concert with some employees of Stonewood and some franchisees, he was trying to buy Stonewood. This seems unusual behaviour for the chair of a large company, but then your correspondent is not a member of the Institute of Directors, and is uncertain of the usual directorial protocols about directors or chairmen of the board trying to buy a company they just resigned from last week. Perhaps a reader experienced in such matters could provide enlightenment.

Yes readers, I can sense your impatience : Join the dots you say ! This correspondent’s opinion, and it is only an opinion from the outside looking in, is that Mr Boult, was looking to buy not only Stonewood, but is most likely involved with a mortgagee sale bid to purchase the Noble Subdivision at Yaldhurst. The intention being that Stonewood would be the builder of the subdivision, both effectively controlled by Mr Boult.

Mr Boult knows the subdivision business, and he now has an inside view of how housing companies are run (or more accurately, how not to run one).

Despite Mr Boult’s defeat at the hands of the Brothers Chow in respect of Stonewood, a bid for Noble may well be attractive to him.

Now given Mr Boult’s history with Delta, it would seem highly likely that if this were the case, there would have been some contact between Mr Boult and his people and Delta.

Can Delta or its Directors or Mr Crombie confirm ? And of course as is the refrain, that no more public funds will be put at risk ?

—

New Zealand Companies register: Delta Utility Services Limited (453486)

█ Directors: David John Frow (appointed 25 Oct 2012), Trevor John Kempton (01 Nov 2013), Stuart James McLauchlan (01 Jun 2007), Ian Murray Parton (25 Oct 2012)

More: Historic data for directors

Related Posts and Comments:
● 10.3.16 Noble Subdivision next on the shopping list !!! You couldn’t…
● 6.3.16 Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions
● 6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
● 5.3.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
● 4.3.16 Delta —Noble Subdivision #EpicStorm Heading OUR WAY
● 4.3.16 Delta #EpicFail Noble Subdivision : Councillors know NOTHING
● 2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
● 1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
● 29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision : Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● Gold Band Finance Prospectus No. 31 Dated 22 April 2015
View this 126pp document via the NZ Companies website at: https://www.business.govt.nz/companies/app/ui/pages/companies/321896/documents — go to Prospectus uploaded 23 Apr 2015 14:33

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

█ For more, enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

*Images: (top) stonewood.co.nz – Chow Bros | stuff.co.nz – Jim Boult by Stacy Squires

Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions

Received from Christchurch Driver [CD]
Sun, 6 Mar 2016 at 10:23 p.m.

Mr Crombie has spoken. A press release on Thursday : Something old, something new, something borrowed, with no clue.

Your correspondent has a theory in relation to Mr Crombie’s press release. Your correspondent surmises that a copy of Delta CEO Grady Cameron’s press release appears to have stuck to Mr Crombie’s saucer (stress – jiggling – spillage !!) when he was having tea and cakes in Mr Cameron’s office last week, and Mr Crombie absent mindedly put it in his pocket. Mr Crombie being a busy man then noticed it a few days later amidst some empty Cadbury Favourites wrappers and Kit-Kat bars. Thinking that he was meant to have done something, and with Grady’s cell phone off, he panics, and emails off the release, which of course is a re-run of Mr Cameron’s effort.

Mr Crombie did say there had been “some misinformation” about the mortgagee sale process. There certainly has, and it is all from Delta and its directors.

Your correspondent and Delta are of one mind here : There is no need for any confusion, Dunedinites will have a lot less suspicion and worry if we had accurate information that Delta and its Directors were not the white collar robbers of the DCC public purse that your correspondent has made them out to be.

To this end, some public minded citizens might want to put in a LGOIMA request, or perhaps write to the ODT with the following questions for Delta, to assist with the excellent What if? efforts on Noble to date.

Let us relax with a cup of Bell’s best and have our fears assuaged. Or perhaps, let us watch the twists and turns of outrageous logic that Mr Cameron will use to explain away these very simple questions :

How much of the $3.3M Delta paid to “strengthen its position” has been paid to Gold Band and Avanti Finance. This is an easy one for starters – readers of course know the answer ($2.7M) because Gold Band have told us, but if Delta get this wrong, we then know it has a telling-the-truth problem as well as previously canvassed numbers, counting and comprehension problems.

What was the remaining funds of the $3.3M spent on ?

Or in case this isn’t clear enough :

How much of the $3.3M has been paid for any advice, fees, or any other sort of payment in relation to the Noble Yaldhurst Subdivision, that was not for the actual direct purchase of first mortgage securities ?

In regard to the question above, who was this money paid to ?

How much Head Office staff time has been spent on the Noble Subdivision since December 2009 and has it been charged to the project ?

Did Delta, or any party associated with Delta, instruct, or convey to Gold Band Finance in any way, that Delta would not allow Gold Band to sell its first mortgage security to other parties (ie, other than Delta) with an interest in the land ?

Can Delta confirm that it will not offer vendor finance, and will not enter into a profit / revenue sharing agreement to the eventual purchaser of the land from the mortgagee sale process ?

Can Delta confirm that in addition to the above, it will not offer any kind of assistance to the eventual purchaser of the land ?

How much has Delta or DCHL paid Mr M Frost for any services related to the Noble Subdivision since 2012 ?

Can Delta confirm that no past or present Delta Directors, and also Mr J Boult, and Mr M Frost, are not involved, or offered any kind of advice or assistance to any of the mortgagee sale bidders ?

Is it true that due to recent developments, and subsequent to the date that tenders closed for the mortgagee sale, the firm conducting the mortgagee sale process, and/or other parties, has been urging other parties, who did not make a bid, to make a bid, even though tenders have closed ?

Given that we are dealing with Delta, perhaps readers should just consider three at most per request so as not to overtax Delta capacities.

These are all critical questions. Memo to Grady and Graham : Better to answer them now, the next time these questions are asked you will be best advised to have a lawyer – your own personal lawyer that you pay for, not a Delta one – present. (Suggestion : NOT the ones that wrote the security sharing deed….). Memo to Graham : $900 a day will not go far on lawyers’ costs.

And Graham : Note to Self : Conduct cost / benefit and personal risk register of Delta involvement. (Memo to Grady : At a salary of $2,090 per working day, hire whatever lawyer you want).

Alert readers will have noticed some of these questions suggest there are yet more horror stories and shady dealings your correspondent wishes to bring to the surface. Indeed there are, but let us have Delta’s position first, to avoid speculation. Of course we will have no option to speculate if nothing is forthcoming, and speculate we will.

For your correspondent, Delta at the Noble Subdivision is the gift that keeps on giving.

█ For more, enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

Delta #EpicFail —Nobel Subdivision : A Neighbour responds

Comment received in reply to CD’s latest post (5.3.16):

Chutchings hut
March 5, 2016 at 9:06 am

The neighbours have a history of objecting, they are not the innocents you portray. The allegations about inadequate infrastructure are nonsense.

—

A Neighbour responds
Sun, 6 Mar 2016 at 3:26 p.m.

“Chutchings hut”, your post here resembles that of C(hris) Hutching’s from NBR. Maybe you’re both?? Either way your posting here and his on NBR, respectfully, is unsubstantiated and misinformed as many have been by NIL during this sad saga. Allow me to enlighten you.

The CCC stormwater experts, an external peer review, and even NIL’s own stormwater designer Cardno have confirmed the stormwater infrastructure IS “inadequate”. Existing roads need to be dug and pipes upsized. I can send you whatever evidence you want?

Further, the road infrastructure is not only “inadequate”, it was found by the Independent Safety Audit [Dr Turner and other traffic experts] to be have “numerous serious safety issues that cause frequent serious injuries and deaths”.

This is why the Elected Council voted to quash the retrospective decision CCC staff procured non-notified to consent the unsafe roads they had already permitted to be constructed without consent.

You are right though that resident stakeholders in the subdivision (neighbours as you refer to them) have a history of objecting, that’s because they have had much to object about. Your post here that they are “not innocents”, and Chris Hutching’s information in NBR that the objections were “belated objections” … “after consents were obtained and the streetworks constructed” is not correct. Public information proves otherwise:-

• Affected residents that will have to use these roads objected from mid 2010 when the roads were being constructed without consent to grossly non-complying standards.

• NIL and CCC staff had agreed to these gross non-compliances behind-closed-doors.

• CCC staff oppressed the affected residents and denied them (and the public) their legal rights under the RMA to oppose the gross non-compliances and dangers.

• The illegally built roads were retrospectively consented 12 months after the objections, in July 2011. (This was 19 months after the variation application was made in December 2009 to make the main spine road 7.5m narrower than required. Doubling of traffic on the narrow roads due to non-notified increases in residential density and the commercial area came later).

• The Elected Council voted for the Independent Safety Audit (against CCC staff’s strong advice). It found the non-complying roads had “numerous serious safety issues that cause frequent serious injuries and deaths”. This caused the Elected Council to quash the wrong, unsafe and “unreasonable” (“RMA term”) decision that CCC staff’s oppression of affected parties and CCC staff’s false tailoring of expert reports ensured.

• Yours and Chris Hutching’s NBR misinformation on this is respectfully forgiven; many have been misinformed of facts in this sorry saga.

Delta #EpicFail Noble Subdivision : Councillors know NOTHING

ODT 3.3.16 (page 14)

—

THIS IS SURPRISING, DO WE BELIEVE HIM

“Delta has provided regular updates to its shareholder, Dunedin City Holdings Ltd, which has in turn informed Dunedin city councillors in briefings throughout the project.” –Grady Cameron, Delta Chief Executive

IPAD BLANK, NO MESSAGES, BLUE TAPE

Delta-communications-ipad

Urban Dictionary
Blue Tape: A term used to express the ratio of service offered in an Emergency …. versus the quantity of seemingly available staff. Often considered to be greater in truth when expressed as the inverse of the service to staff ratio.

DUNEDIN CITY COUNCILLORS FEAR MULTIMILLION-DOLLAR LOSSES FROM DELTA BUT THEN WHAT IF? HEARD IT WAS DELTA DRIVING THE MORTGAGEE SALE AT YALDHURST

[timemanagementninja.com]
Blue tape is the start of something new.
A construction project. Building something new. Remodeling something existing. Producing something better than was there previously.
Blue tape represents constructive, productive activity.
So, which does your company deal in? Red or blue tape?

GRADY ????!!!!!!!

—

Related Posts and Comments:
● 2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
● 1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
● 29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

█ For more, enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

—

Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….

Election Year : The following opinion is offered in the public interest. -Eds

—

Received from Christchurch Driver [CD]
Wed, 2 Mar 2016 at 12:50 p.m.

Your correspondent today was intending to provide his further investigations and suspicions as to what was in fact really happening with the “mortgagee sale” process at Noble, and what they are up to. Pausing here : The term “mortgagee sale” is used in the loosest possible way. Your correspondent has been at work on this, and as the trail to the mortgagee sale has unfolded in recent posts, your correspondent now thinks he has taken What if? readers down a couple of dead ends in an early post or two concerning where Delta may have ranked and what Delta / DCHL are plotting…. He made the mistake of thinking a mortgagee sale was in fact a true arms length mortgagee sale, where security holders went to the market to sell a distressed asset, at whatever price the market saw value at. That is the consequence of seeing through the glass darkly, with a group of men determined to keep secrets, but your correspondent has enlisted some help, and reckons he now has the measure of Delta’s machinations in regard to their ultimate plan.

Readers may be surprised to hear that your correspondent has no personal axe to grind with any of the public figures he has lampooned, merely that on the facts some of them are unfit to occupy the positions they do.

Over a cup of tea, it has been decided to give DCC and Delta a chance to respond to the recent posts by releasing clear information about what has happened and what plan Delta / DCC has to exit the Noble Subdivision. While any Delta / DCC disclosure will be a lot less entertaining than this correspondent (even if I say so myself….) we must sacrifice humour for accuracy at this critical juncture.

It is a critical juncture because this correspondent believes if pressure is not brought to bear on Delta / DCC now, a fait accompli will be soon presented that is going to involve more public funds at risk.

Mr Crombie will assume a sombre tone, and announce that there was no option. He will become TINA Crombie. – There Is No Alternative.

As Justice Brandeis said ‘sunlight is the best disinfectant’ and all of Dunedin deserves precision as to what is going on. Of course, as What if? readers will know, if the Delta / DCC does not respond to the kind and gentle approach (we must give them a chance, readers) there are other avenues presently being explored….

Mayor Cull’s lack of transparency is extremely concerning, and is an indicator to what is happening. If indeed there was a proper mortgagee sale process occurring with negotiations with multiple bidders unrelated to Delta / DCC, there is absolutely no reason why he could not confirm that. This correspondent thinks he cannot because it isn’t true. Blatant falsehoods have a habit of being discovered.

Your correspondent is not a proud or vain man – (well, his wife may not agree) – he and most of Dunedin would be very, very happy if he was proven to be quite wrong, and Delta’s plan did not involve any further public funds. This of course doesn’t make the previous Delta ineptitudes go away. To labour the point : The directors must be held to account.

Today, instead of the headline act, we will tease out some of the implications of the Delta decision to continue work on the Noble Subdivision in December 2009, when the variation to the consented subdivision was revealed to them and they continued on.

This was the critical decision that led to Delta backing up a truckload of dollars off Yaldhurst Rd and tipping it into the freshly excavated ground at the Noble Subdivision. (Your correspondent likes earthmoving metaphors as much as the next man).

Quite apart from the ethical and legal considerations arising from committing a major offence under the Building Code, this correspondent believes this was also a very bad financial and strategic decision.

Delta #EpicFail Noble Subdivision : Gold Band Finance —The Little Finance Company that did (Delta).

Election Year : The following opinion is offered in the public interest. -Eds

—

Received from Christchurch Driver [CD]
Tue, 1 Mar 2016 at 4:17 p.m.

Your correspondent thought it useful to perform some financial excavation and unearth those precious first mortgage numbers that Graham Crombie and Mayor Dave Cull refuse to reveal in respect of the Noble Subdivision. They are the key to what Delta will eventually receive for its official $24M + debt on Noble. Your correspondent worked on the premise that if Delta is trying to hide something, it shouldn’t be too difficult to find at all. Your correspondent was not disappointed.

As they say in Delta out on the site, it was a good day, the ground was soft and the going was good. It didn’t take too long at all to get to the RL of the matter. (RL = Reduced Level…. excavator talk).

But inevitably, as is the fashion of these #EpicFail posts, there is evidence of continuing Delta stupidity, and yet another clumsy attempt to hide the facts from the ratepayers of Dunedin.

Your correspondent has long been curious about the first mortgagee at Noble Subdivision. Who they were, how much they were owed, what was their plan to exit out of this mess. Various entities had been mentioned in the media, but the company is Gold Band Finance. This is a tiny finance company : it has just $15.6M in TTA (Total Tangible Assets), and in August 2013 this one loan – in default – represented 21.30% of their total assets. Only 29% of the company’s lending is in property, and Noble was 70% of this. If Noble turned sour, this company was gone.

As it was, Gold Band breached their trust deed every year from 2009 until 2014 as a result of Noble, and twice had to pull its prospectus and not accept funds because the Trustee was so concerned about its position that it wouldn’t give Gold Band a waiver because the trust deed breaches were so serious.
(Memo To Delta Directors – Find that Trustee and appoint him as an auditor).

Gold Band then in August 2013 decided it needed to get most of this paralysed elephant off its back, so it could continue breathing and operating. Thus it sold part of its first mortgage debt…. to Delta.

Now the usual course of events is that when banks or finance companies are under pressure and want to sell distressed loans, they do so at a discount. That is, just as an example…. The face value is, say, a few million, the borrower is a deadbeat and hasn’t paid anything for years, the loan is in default and the neighbours are suing him for unconsented work (sound familiar ?). The seller would grab 50-60 cents in the face value dollar with both hands and “move on”, to borrow a term from the Cull lexicon.

Typically on land / development projects, a first mortgage will go no more than 40-50% of Loan to Value ratio (LVR) : But Gold Band had assessed the LVR at 71%, so even the first mortgage was far into the red zone. We will return to this in a later post.

From this, what a person of greater than room temperature IQ would say : “Dear Gold Band, I like the cut of your jib, the quality of your borrower and prospects of this mortgage. This (broken) mortgage is a bargain at full value ! Where do I sign ?!

This correspondent can hear the collective ratepayers’ prayer, “Do not say it… no, please do not say Delta paid full value” ….Readers, Delta did not pay full value. It paid more.

Delta #EpicFail Noble Subdivision : NBR interested in bidders

Updated post
Mon, 29 Feb 2016 at 7:28 p.m.

The NBR (National Business Review) on Monday, 22 February 2016, featured an article by Christchurch Bureau reporter Chris Hutching, who says:

“The latest problem [for Delta] involves the Noble Park subdivision (managed by interests associated with Apple Fields) on the western outskirts of Christchurch where some of the properties are the subject of a mortgagee sale. Tenders close on February 12 and parties related to the developers and Delta are understood to be bidders.”

And

“Another hurdle has been a series of actions by a handful of neighbours who have lodged caveats. They were the unsuccessful respondents in last year’s High Court case brought by Gold Band but have subsequently appealed. However, their cause of action may become null and void in the case of a mortgagee sale, according to another court ruling.”

█ To read the full article, go to NBR Print and NBR ONLINE subscriptions: http://www.nbr.co.nz/subscribe

Previously, What if? Dunedin sources had it that Jim Boult and Mike Coburn were back in the picture…. two names mentioned in Auditor-General Lyn Provost’s investigation and report (March 2014) on Delta’s failure with subdivisions at Luggate and Jacks Point.

—

In a more recent article, NBR business journalist Tim Hunter gets stuck into Delta issues – providing a general overview on concerns he has with Delta’s position to date. More is likely to follow.

The National Business Review
February 26, 2016 Page 2 Comment – Hunter’s Corner
Tim Hunter

How council company handed millions to shaky developer
The risks of local authority over-reach are again on display in Dunedin

Excerpt (closing):

The timing, size and nature of the security deals between Delta and Noble imply the council company was advancing millions of dollars in credit to Noble to finance the work.
Delta’s accounts say one counterparty defaulted on two principal sums of $6.35m and $5m, as well as other financial commitments, although it held security in the form of mortgage and general security agreements.
The implication is that Delta is owed the eyewatering sum of $11.3m by one single customer, plus interest and penalties, with the only hope of recovery being from the exercise of its security over property in the subdivision, which may or may not be worth enough to cover it. Tenders closed on a mortgagee sale on February 12.
If so, Hunter’s Corner is amazed that a council-owned company would take on work on such terms and hopes it will in future remember that ratepayers unwillingly carry the can for its cock-ups.
It should also be a reminder that councils would do well to kill off their commercial risks.

█ To read the full article, go to NBR Print and NBR ONLINE subscriptions: http://www.nbr.co.nz/subscribe

—

Related Posts and Comments:
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

█ For more, enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

Delta #EpicFail Noble Subdivision : If I were a rich man / Delta Director

Election Year : The following opinion is offered in the public interest. -Eds

—

Received from Christchurch Driver [CD]
Sun, 28 Feb 2016 at 9:10 p.m.

Your correspondent has used strong words to criticise the Delta Directors in recent posts in respect of the Noble Subdivision.
“Ineffectual”, “serial head nodders”, “slumbering”.

Doubtless some of the Directors concerned will disagree, violently.

Has this correspondent been too harsh ? After all, it is easy to have 20/20 hindsight.

So today let’s look at the “WWYD” test – What Would YOU Do – in the same situation.

Your correspondent had given this some thought on this sunny Sunday, and while not a captain of industry or commerce as the actual directors, is willing to give it a go.

Yesterday’s post asked if the Directors had any ability to rein in Delta’s management when necessary. This correspondent thinks that is the key issue.

In any company the executive team is tasked with running the company day to day, meeting their various KPI’s and targets, and quite properly that is their focus. No one is perfect and there will be mistakes and duds that could not have been foreseen.

The Directors are there to provide governance and limit the risk to the shareholders. This was doubly important for Delta, as Warren Larsen said DCC companies needed to have a particularly low risk threshold, being publicly funded, and because Delta was operating in the very high risk property development arena.

A further even more basic duty is to ensure that the company operates lawfully at all times.

That is the lens through which I as a Director, would view Delta’s activities.

With that in mind, I thought how I as a prudent Director would respond when at a Board meeting in late 2009, or very early 2010, when it is assumed the Directors learned of the plan change at Noble Yaldhurst just two months after starting work in October 2009.

As a Delta Director I would know that at some point it was likely there were going to be some thorny issues ahead on Noble, particularly given the experiences already encountered at Luggate and Jacks Point.

As a professional Director I would expect the management to have a response to the problem. I would also know that ‘when things go wrong’ is where there is always potential for greater risks to be assumed so Directors would need to be especially vigilant when evaluating management’s plan to fix the problem.

As a Director I would know that management in general don’t like problems – they just want to get rid of it in the fastest way generally and focus on the business and meeting their KPI’S.

They often don’t get a good perspective on the bigger picture. That’s what the Directors are for.

So when it was explained that yes, there was an “issue” with budget costs, but the plan by the Developer was to change the subdivision layout, alarm bells would have rung and the following questions spring to mind (Answers by Delta management).

1. How much of the work has already been done ?
Answer : Not very much just general site excavation.

2. How does this affect the Resource Consent and Engineering Consent ? Answer : Noble (NIL) are or have already applied for a variation.

3. Weren’t there specific provisions for the roading and layout for this zone ?
Answer : Yes there were.

4. What can we do in the meantime while we wait for the varied consent ? Answer : We can do some site clearing but NIL have assured that the consent is a formality and are keen for us to continue.

5. But we cannot do work without a consent surely ?
Answer : Err…NIL have assured us that it won’t be a problem, the CCC are relaxed about us continuing.

6. Is there anything in writing from CCC to say this ? This seems very risky – Councils have to comply with the Building Act, they don’t have a choice, otherwise people would be doing deals with Council inspectors all over the place, and Council would be liable.
Answer : No, we don’t have anything in writing yet.

7. Why don’t we just stop work until it’s sorted ?
Answer: We’ve already set up on site and we want to make the most of the Summer.

8. Directorial discussion ensues : My position would have been : We think the risk is too great. We are already financing the subdivision and not getting paid until sections are sold. We have the upper hand here. Noble will just have to wait. Changing the roads is a major. We don’t need a court case about working on a major subdivision without a consent with the CCC to tarnish the company at this point.

Clearly, a majority of Directors did not agree with the above, and voted to continue.

A key point is that the Directors didn’t only get one chance to exit Noble. From this point Noble would have been on the agenda at every meeting, and they had many opportunities to stop work, when things went from bad to worse. Instead, it appears they took ALL those opportunities to look the other way and, and one result, apart from many millions written off, was to be a party to illegal work.

Delta may say that CCC were relaxed about working without a consent, or some other vagueness, but the Yaldhurst community and the neighbours were far from relaxed. They were never going to stand by and watch a Developer cynically try to ram through a major change on a land zoning that the CCC had just spent years formulating and with public consultation, etc.

So, readers, what would YOU do ?

—

New Zealand Companies register: Delta Utility Services Limited (453486)

█ Directors: David John Frow (appointed 25 Oct 2012), Trevor John Kempton (01 Nov 2013), Stuart James McLauchlan (01 Jun 2007), Ian Murray Parton (25 Oct 2012)

More: Historic data for directors

Related Posts and Comments:
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

█ For more, enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

Delta #EpicFail Noble Subdivision Consent : Strictly Optional

Election Year : The following opinion is offered in the public interest. -Eds

—

Received from Christchurch Driver [CD]
Sat, 27 Feb 2016 at 10:08 p.m. Last updated at 10:32 p.m.

Your correspondent would like to issue a warning to any Dunedin ratepayers venturing into this website : What you are about to read is hazardous to your stress levels. Please fortify yourselves with a nice cup of tea and a big saucer to catch the spills.

We return to the scene of the Christchurch Delta demise today to examine a few “timing and consent” issues.

These may appear to be innocuous words designed not to cause alarm, and indeed, Graham Crombie had assured Dunedin ratepayers more than once that the whole Noble Subdivision problem is merely one of “timing”.

It is now apparent that we cannot take at face value anything that is said by Mr Crombie in regard to Noble, and readers, yet again, not far below the surface, lies another tale of absolute Delta stupidity.

First a few facts to set the scene.

Noble Investments Ltd gained Christchurch City Council consent for 304 lots in May 2009. The subdivision had a small commercial area and a variety of lot sizes.

Crucially, the roads were designed to best practice with a 25m carriage way. The carriageways were separated by a median strip and it had recessed parking bays and cycle lanes. (No cycle lane jokes please!)

Delta started work in late 2009 on the site.

Then in December 2009 NIL (yes readers, NIL by name and NIL by value and many other measures !) applied for a variation to their consent.

This was no minor variation : the commercial area increased by over 200 per cent and the eventual analysis by Abley Transportation Consultants was that the main spine road would have more than double the original vehicle movements.

Readers, please hold your cups tightly :
Delta then ignored the original consented drawings and built the subdivision’s main roads and layout according to a completely NEW plan that had NOT BEEN CONSENTED to by the Christchurch City Council (CCC).

This was not for a day, a week or a month. Delta continued to build the main collector road THAT WAS 4 METRES NARROWER than the consented roadway for at least NINE MONTHS.

Linking back to yesterday’s post your correspondent surmises that the nuclear budget explosion must have happened in late 2009, and the variation being a desperate attempt to cheapen up the subdivision by making the roads narrower and the more commercial area was to pay for the stormwater work that Delta failed to budget for.

Let’s back the truck up here : Can anyone possibly imagine what the DCC would do to a Contractor that continued to work on unconsented work on a massive subdivision for a year in Dunedin ?

The DCC prosecutes landlords for adding an extra room to their student flats, not to mention trying to close down the Saddle Hill quarry which actually has some sort of consent.

In August 2010 neighbours complained to CCC that unauthorised work was occurring on the subdivision and things then got VERY messy. The CCC did issue a retrospective consent, but the Yaldhurst community and many CCC councillors are up in arms about the decision to grant retrospective consent. The Yaldhurst community are seeking a judicial review of the decision. The situation is still not resolved.

Oh, and by the way the December 2009 variation to the consent deleted a road connecting the neighbouring land that NIL had agreed to build, which is another reason why, five years on, the project is still mired in legal action.

Yep, Delta knew how to pick em ! Delta being Delta were too stupid to realise that if NIL were happy to clothesline the neighbour whose co-operation it needed, it would have no compunction doing the same to them.

But readers, that’s not all : there’s is more utter ineptitude :

The CCC got around to warning NIL at some point that any unconsented work was done at the Developer’s risk.

And the Developer, NIL, told CCC that it continued to work because ….., OF THE AVAILABILITY OF THE CONTRACTOR.

There is no way NIL could insist that Delta break the law and continue to work.

In other words, Delta continued to work on the site because it wanted to, because it was easier than finding other work. Another possibility is that Delta felt compelled to continue because it created the whole problem with its monumental stormwater mistake. However two acts of stupidity is still stupidity.

In an act of supreme hubris, it knew the work was unconsented but thumbed its nose at the CCC and did it anyway.

This, from a CCO.

Yes the Developer, NIL are the laughing stock of the industry and have no credibility. But Delta were their enablers. Delta were stupid enough to indulge them when any other contractor would have walked away in disgust.

Words have nearly failed this correspondent. (Apologies again for the caps – stress!)

So, let us return to the directors.

What did they know and when did they know it ?

Did they ever ask management the first and most basic question on a project, “Have you got consent ?”

or, each month, “are there any changes we should know about ?”

or “any changes to our risk profile ?”

Can they read a plan ?

Did they ever visit the site ?

Do they have any aptitude at all to keep tabs and rein in the management of a civil contracting firm?

This correspondent does not believe that the management of Delta, a Council Controlled Organisation, would have kept the Directors in the dark. They are bureaucrats, after all, and would be careful to pass on anything contentious.

On Luggate and Jacks Point, the Auditor-General actually commented that the board had been fully involved and Warren Larsen noted that more transparency and communication was required at the DCC companies.

In the troubled history of the directorial shortcomings of the DCC companies, this is a new low point.

Your correspondent, also, is incredulous that the ODT had never bothered to investigate any of the specific acts of stupidity at Noble.

The information is all public record. We can be grateful to What if? Dunedin that they have provided a forum for this issue.

The Noble Subdivision is an intermodal multiple train wreck.

—

Correction received.
Sun, 28 Feb 2016 10:27 pm

At the above post, your correspondent made two errors in regard to the reduced width of the main roads on a number of items :

The reduction in carriage way was from 19.5 m to 11.5 m, a reduction of 8 m, not 4 m….

The roads reduced in width was not the main collector road : It was both the main collector road AND the loop roads…. that is, the majority of the roading.

—

Related Posts and Comments:
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

█ For more, enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

Noble Village Subdivision, Yaldhurst Road – Site Plans Dec 2009
Source: CCC Archives – Proceedings (March 2012)