Tag Archives: Noble property subdivision

Delta —Noble Subdivision #EpicStorm Heading OUR WAY

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

Delta Alert

IMPENDING POST ALERT
CD has THE story for you……….. soon

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

Posted by Elizabeth Kerr

*Image: thinkdelta.co.nz – delta-waste-digger tweaked by whatifdunedin

Leave a comment

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, District Plan, Economics, Geography, Hot air, Infrastructure, Name, New Zealand, Ombudsman, People, Politics, Project management, Property, Resource management, Site, Town planning, Transportation, Travesty, Urban design

Delta #EpicFail Noble Subdivision : Councillors know NOTHING

ODT 3.3.16 (page 14)

ODT 3.3.16 Letter to editor White p14

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
delta-communications-ipad 1

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.

1 Comment

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, District Plan, Dunedin, Economics, Geography, Infrastructure, Media, Name, New Zealand, Ombudsman, People, Politics, Project management, Property, Resource management, Site, Town planning, Transportation, Travesty, Urban design

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.

Continue reading

2 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, District Plan, Economics, Geography, Infrastructure, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Town planning, Travesty, Urban design

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.

Continue reading

21 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, District Plan, Dunedin, Economics, Geography, Infrastructure, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Town planning, Travesty, Urban design

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.

1 Comment

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Infrastructure, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, Resource management, Town planning, Transportation, Travesty, Urban design

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

14 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, District Plan, Economics, Geography, Infrastructure, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Town planning, Transportation, Travesty, Urban design

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.

Delta advert p58 MarApr2011 canterburytoday.co.nz

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)

NIL Yaldhurst Site Plan Dec2009 PS-01
NIL Yaldhurst Site Plan Dec2009 PS-02
NIL Yaldhurst Site Plan Dec2009 PS-03
NIL Yaldhurst Site Plan Dec2009 PS-04
NIL Yaldhurst Site Plan Dec2009 PS-05

41 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, District Plan, Economics, Geography, Infrastructure, Name, New Zealand, OAG, People, Politics, Project management, Property, Resource management, Site, Town planning, Transportation, Travesty, Urban design

Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent Contracting

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

Received from Christchurch Driver [CD]
Fri, 26 Feb 2016 at 11:03 p.m. Last updated Sun, 28 Feb 2016 at 2:49 p.m.

Subdivision 101 : Don’t forget the STORMWATER DISCHARGE

Firstly, your correspondent apologises for the teenage habit of using caps in text for emphasis, but recently acquired knowledge some of which is shared below, defied conventional grammar.

An aside: your correspondent was overly fulsome in his praise of Delta CEO Grady Cameron’s transparency this week, when he revealed that Delta spent $3.3M “strengthening their position” vis-à-vis the $20M + debt owed to Delta on the Noble Subdivision at Yaldhurst, Christchurch.

It would have been a lot more credible had Mr Cameron revealed this TWO YEARS AGO, when as outlined in the National Business Review today, the deal was actually agreed.

Your correspondent now knows why the cone of silence has descended upon the Delta Directors, Grady Cameron, GCFO Grant McKenzie and Mayor Cull on this matter.

Mayor Cull has claimed this is just a bad debt. With all respect to the Mayor (that he is due) that statement is simply bovine excrement.

Mayor Cull on Morning Report sounded desperate when he claimed that Noble was not the same as the Jacks Point and Luggate debacles. In this he is correct —it was worse.

It is a tale of a perfect storm of contracting ineptitude as well as directorial torpor.

It is well covered by various posts and indeed the Auditor-General’s report that Delta had severe governance problems, due at least in part to a preponderance of accountants and numbers men. Warren Larsen in his 2012 report, politely said that this led to a culture of “excessive collegiality” (lovely phrase) at the board level. A more accurate description would be the Board acted as a band of serial head nodders.

Your correspondent can report that Delta executive management, and without doubt Dunedin City Council (DCC), knew that the project was in default in 2010 for millions, if not before.

Delta started work on the subdivision in 2009. Your correspondent understands that one arm of Delta / DCC loaned money to the contracting arm so that wages, suppliers and outside contractors could be paid.

This is important because there were it seems some parameters around the loan advances from the finance arm to the contracting arm.

Delta took around two years to complete the development. This is also very instructive because this correspondent’s information is that Delta left site several times because the finance arm would not advance money. Delta’s directors knew they had a dog by the tail in 2010.

So the critical question is – why was the project in default to a degree that caused Delta to leave the site several times between 2009-2011 ?

Readers might think : What was that deadbeat developer up to that caused this default ?

Sadly : the really, really dispiriting fact is that Delta themselves appear to have been the architect of the default that led us to this utter shambles through sheer contracting incompetence.

It seems that Delta provided budgets and estimates to the developers for the subdivision work. In return for one arm of Delta advancing money to pay the other arm, Delta got to do the subdivision work at prices somewhat over market rates.

The Developer relied on the Delta numbers for their budgets to their funders and to set section prices.

The elementary and fatal mistake that Delta look to have made is that they priced the work off incomplete drawings. This was only fatal because they did not know what any other experienced Canterbury civil contractors knew, which is that the STORMWATER DISCHARGE requirements which is controlled by the Canterbury Regional Council, were becoming ever more complex and were a very big cost.

Even if the exact design was not known, a competent contractor would have made some allowance or sought further information, particularly when they were not in a competitive situation. However without knowing the exact details, it looks like the Delta staff had their blinkers on, priced what they saw on the incomplete documents, and catastrophe resulted.

While Delta destructed millions of public funds on Noble, the directors slumbered on. They either had no clue about what questions to ask management to certify if things were under control at Noble, or knew and covered it up.

From what this correspondent can ascertain, Delta started work onsite before the Canterbury Regional Council Consent was issued, which is an issue in itself that bears scrutiny. For a short while earth was being moved, roads built and things were OK.

Then while work onsite is charging on….. BOOM !!!! a NUCLEAR budget explosion emerges when it is discovered that Stormwater discharge requirements will cost $6-7 MILLION, which is MORE than Delta’s ENTIRE contract. The Stormwater discharge had to be installed for all stages which meant there was no quick recovery for Delta at the end of Stage 1.

From there, the financial future of the project and Delta’s payday was doomed. This correspondent understands that the gross realisation of Stage 1 of the subdivision was $6M LESS than the COST of the work. Releasing more stages required more advanced funds from Delta, which appears to have happened, but other legal action then held up any release of sections to market.

By starting the subdivision and agreeing to be at risk (ie forgoing progress payments until sections were sold) Delta were doomed by their own actions. Once they started, they had to keep going until it was finished, otherwise they had no chance of ever seeing any money. Their budget mistakes made sure that the developers who already were spurned by the banks and dealing with 3rd tier lenders had no chance of additional funding.

Delta continued to pour money into the project and watch while problem after problem continued to bedevil the project.

The final indignity and rebuke to Delta is that the mortgagee sale documents apparently treat the land as a bare land development and do not even consider it a subdivision, ie NO value is attached to the $11.3M of Delta work, because the completed work wasn’t built to CCC specifications. Delta must share some blame for this also – it is another example of Delta’s inexperience in the Canterbury market.

This correspondent is determined to bring the directors to account and this will be the subject of future posts.

This correspondent acknowledges that he is seeing through a glass darkly as it were in relation to the precise facts. Some figures and details may not be quite right, but the overall picture portrayed we can be confident of. Mr Cameron is urged to release the full facts about Noble and ignore the ineffectual Mr Crombie before more unpleasant facts about Noble and other Delta matters emerge.

It is clear that the past and present directors (with perhaps one exception) have erected a wall of silence to keep the Public and Councillors in the dark about the massive destruction of public funds they have presided over. They are unfit stewards.

It is now this correspondent’s opinion that the Auditor-General’s investigation of Delta is essential.

Related Posts and Comments:
● 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

14 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Dunedin, Economics, Geography, Infrastructure, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, Resource management, Site, Town planning, Travesty, Urban design

Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101

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

Updated post
Thu, 25 Feb 2015 at 5:22 p.m.

### radionz.co.nz Thu, 25 Feb 2016
Morning Report with Susie Ferguson & Guyon Espiner
Will Dunedin council’s Delta get paid for stalled subdivision? Link
8:44 AM. Critics of a council-owned company owed millions of dollars from a housing subdivision say the public has been kept in the dark.
Reporting by Otago correspondent Ian Telfer
Audio | Download: OggMP3 (3′ 48″)

Yaldhurst Village 1Image: Supplied

Received from Christchurch Driver [CD]
Thu, 25 Feb 2016 at 9:39 a.m.

Mayor Cull on Morning Report today demonstrated a minimal grasp of commercial reality. He claimed that Delta’s position could not be disclosed because there were “negotiations” with “a third party” (a buyer).

Memo to Mr Cull : A mortgagee sale is the first secured party saying – we have had enough – make us an offer. The amount owed on the other securities is of ZERO interest to the buyer except for the situation outlined below.

What IS of great interest to the buyer, and what Mr Cull DID disclose is that there was only a single party involved. Doh !!!! The “third party” now knows that there there is no competition and the price just went down.

The only time further ranking securities amounts would affect the sale price is when there is a chance that the sale might fetch MORE than the amount of the total debt. Mayor Cull was certainly not saying that, and we can be sure if there was any remote possibility that the Delta core debt of $11.3M with the additional $3.3M being all recovered he would be shouting that from the rooftops.

Mayor Cull confirmed again that there was nothing “dodgy”, or “illegal”, it was just a bad debt and there was no finance element to the deal.

Mayor Cull can then, after the sale process is concluded, reassure ratepayers that he is correct with a full report on the fiasco.

By his own words today he is obligated to do so.

Note : This correspondent was peripherally involved in a forced sale process of a recently completed project of a similar size to Noble (Yaldhurst) Subdivision. It had none of the planning or legal issues that plague Noble’s Yaldhurst. Debt was in excess of $20M and the forced sale process yielded a sale for less than a quarter of that.

[ends]

Yaldhurst Village location map [villagelife.co.nz][villagelife.co.nz]
Yaldhurst Village site received 14.2.16Image: Supplied

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:
● 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

● 20.3.14 Delta: Report from Office of the Auditor-General

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

Posted by Elizabeth Kerr

16 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Dunedin, Economics, Geography, Infrastructure, Media, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Town planning, Urban design

Delta #EpicFail —Noble Subdivision: Cameron, Crombie and McKenzie

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

Received from Christchurch Driver [CD]
Tue, 23 Feb 2016 at 10:02 p.m.

This correspondent was very interested to read today’s front page ODT article which appeared to confirm the suspicions of an earlier post.

Delta CEO Grady Cameron must be given credit for being honest and transparent, for confirming that Delta spent $3.3M last year buying more debt on the Noble (Yaldhurst) Subdivision. This is in contrast to the cabbage-like behaviour of DCHL chairman Graham Crombie, and DCC/ DCHL financial controller (GCFO) Grant McKenzie. It has hard to escape the conclusion that Mr McKenzie when questioned by city councillors must have known the amount of money Delta spent “strengthening its position”, ie buying up securities that ranked ahead of the Delta security. First, he said he did not know the figures involved, then he indicated to the ODT after Monday’s council meeting that the figure of $3M “was not accurate”, and that he “could not say” what the figure was. Simply put, if Mr McKenzie could not say what the figure was, how did he know that $3M was not accurate ? It seems clear he did know, and is dancing on the head of a pin. He could say the figure, but he would not. No one is counting the six figure amounts ! Maximum points for dissembling to that man.

This and other verbal pirouetting at a recent Council meeting where Mr McKenzie was unable to distinguish between dividends and debt repayment despite repeated questioning from Cr Lee Vandervis was also alarming. Perhaps the lure of a return to the relatively debt free safe haven of the University beckons, not subject to scrutiny of the citizens….

The other person of interest is DCHL chairman Graham Crombie, who also has trouble with numbers and counting. Cr Hilary Calvert surmised that the $11.7M already written off plus the $13.3M debt meant that Delta had an exposure of up to $24M. Cr Calvert was close, if not quite right as the $13.3M was the value of the debt Delta estimated, not its actual debt. Mr Crombie said the figure “never got that high”, and that the interest and penalties were “horrendous”. Mr Crombie’s nose is growing : Grady Cameron confirmed the core debt was $11.3M, plus $3.3M buying debt, plus the previous year’s debt write down of $10.7M which has already been attributed to Noble by Delta. These add to MORE than the $24M suggested by Cr Calvert, yet Mr Crombie was happy to sidestep Cr Calvert, Cr Vandervis and any other councillors who were keeping up – not many it seems.

We should pause re : Mr Crombie has consistently said since the Noble debacle became public that all would be well, Delta would recover its core debt and the penalties and interest weren’t of any moment – yesterday he described them as both “horrendous” and “irrelevant”. An interesting question is – why were the penalties and interest “horrendous” ? The answer is because Delta’s security was so far down the security chain as to be virtually meaningless, and as a consequence, its charges indeed were horrendous because they had little chance of ever being paid, and the rates reflect that.

This correspondent is alarmed that an accountant would describe the interest payable on a debt as irrelevant, especially when the company in question has in effect financed the entire core debt of $11.3M with either borrowed money from the DCC, or by foregoing dividends to the DCC. Mr McKenzie would certainly not agree that the interest charges are irrelevant because Delta’s loan funding has been arranged through DCC treasury at somewhere between 4-7% per year from 2012. Although, the actual figures might be 3.9% to 6.85%….

Delta  logo 2We now know, thanks to Grady Cameron, that Delta embarked upon this foolhardy venture with a security ranking somewhere between 4th and 6th in line.

The crucial question is : after this year’s debt purchases, where are they ranked now ? Delta and DCC refuse to confirm this. If they were ranked first, then it would be Delta themselves that had forced the mortgagee sale process. This seems unlikely since if Delta had control as first security, they would have no reason to hide this and the PR department would spin this as Delta taking firm and decisive action to recover their debt. Instead, Mr Cameron meekly says that Delta is a “secured creditor” and the mortgagee sale process is a “significant movement” towards payment. He doesn’t say to who….

It is also a concern why Delta invested a further $3.3M, if they still don’t have control of the project. Others have posited that they almost certainly bought the debt at a reduced value, but the key point is that they don’t have control and first security does not have to have any regard at all to the interests of lower ranked securities. This correspondent has seen at first hand several similar land deals where second ranking securities from large finance companies received zero. One can be sure that the first security will also have heavy penalty rates and other costs will emerge from the woodwork.

Delta were not some minor suppliers on the project. They supplied all of the infrastructure for the subdivision. There aren’t any other big parts to a subdivision. Typically, if the land is correctly zoned, the rule of thumb for the cost of a subdivision is a third land cost, a third infrastructure cost (Delta), and a third profit.

What is truly astounding is that there were at least three securities ahead of Delta and they knew this going into the deal. Any developer that needed three mortgages or debt securities just on the land and the resource consent process before they started work was doomed if there was any trouble, lack of expertise and unforeseen problems. This subdivision had all those, in spades. A further red flag should have been the involvement of one Mr Justin Prain, who previously touted the unique benefits of the similarly doomed 5 Mile town development at Queenstown. In fact the sales pitch was remarkably similar for both developments.

There are many questions to be answered about this debacle, but one that might unlock the whole saga is : what involvement did Murray Valentine, Mike Coburn and Peak Projects have in any entity related to the Noble Subdivision ?

This correspondent urges the other new Delta directors who were appointed after the Noble deal was entered into to show some cojones and order an inquiry. Clearly, it is just too hard for Mr Crombie.

This item via whatifdunedin:

### nbr.co.nz Monday May 25, 2015
Apple Fields’ directors fined $30,000 over filing omissions
By Suze Metherell
Justin Prain and Mark Schroeder, directors of the formerly NZX-listed Apple Fields, have been fined $30,000 each for failing to file financial statements for three years.
The Christchurch District Court found the two directors failed under the Financial Reporting Act to report Apple Fields’ accounts, according to Judge Emma Smith’s February judgment. The Financial Markets Authority brought the charges against the two directors after they failed to report the annual accounts for the financial years between 2011 and 2013. The FMA can seek fines of up to $100,000 for failure to report.
Christchurch-based Apple Fields, which listed on the NZX in 1986, was once New Zealand’s largest corporate orchardist and clashed with the Apple & Pear Marketing Board for the right to export fruit independently. The company moved into property development in the early 2000s, with Mr Prain appointed a director in 2002 and Mr Schroeder in 2003.
Apple Fields entered into a property development arrangement with Noble Investments in Christchurch, which was planning to subdivide land on Yaldhurst Rd into 254 residential sections as well as develop a village centre. After changes in the joint venture, Noble Investments could be considered a subsidiary and its accounts needed to be included in Apple Fields’ group accounts, according to the judgment. The Yaldhurst development stalled when Apple Fields ended up in a protracted legal battle with neighbouring landowners.
Read more

Related Posts and Comments:
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

● 20.3.14 Delta: Report from Office of the Auditor-General

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

Posted by Elizabeth Kerr

34 Comments

Filed under Business, Construction, DCC, DCHL, Delta, Economics, Geography, Infrastructure, Media, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Town planning, Urban design

Delta: Update on Yaldhurst subdivision debt recovery

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

Received.

From: Gary Johnson
Sent: Friday, 19 February 2016 5:18 p.m.
To: Elizabeth Kerr
Subject: 160219 Media Statement_Delta half year results – update on Yaldhurst subdivision debt recovery

Elizabeth

We see there has been interest on the What if? Dunedin… on the current position on Delta’s recovery of an outstanding debt related to the Yaldhurst subdivision, Christchurch.

I hope the attached information provides a useful update, ahead of Delta’s half year report for the six months to 31 December 2015, due for release next week.

Kind regards, Gary

Gary Johnson
Marketing and Communications Manager
[Delta Utility Services Ltd]

ATTACHMENT [click to enlarge]

160219 Media Statement_Delta half year results - update on Yaldhurst subdivision debt recovery (scanned)

Related Posts and Comments:
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
21.16 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

● 20.3.14 Delta: Report from Office of the Auditor-General

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

Posted by Elizabeth Kerr

52 Comments

Filed under Business, Delta, Dunedin, Economics, Geography, Infrastructure, Name, New Zealand, Project management, Property, Resource management, Site, Town planning, Urban design

Delta / DCHL not broadcasting position on subdivision mortgagee tender

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

Received from Cr Lee Vandervis
Sunday, 14 February 2016 at 10:43 p.m.

█ Message: An individual interested in the Noble [Yaldhurst Village] subdivision but who wishes to remain anonymous has sent me the attached photograph and the following comment. I believe that it is in the public interest for this comment to be published, as it is largely confirmed by information I have been receiving from interested parties in Christchurch over the last two years.
It seems remarkable to me that the current Yaldhurst subdivision mortgagee sale process has not been widely reported or commented on, especially as DCC’s Delta is so heavily invested in what was always a risky subdivision, a very similar scenario to the Delta Jacks Point/Luggate subdivision that lost $7-9 million.

Yaldhurst Village site received 14.2.16Delta heavily invested in failed Yaldhurst land subdivision, Christchurch

“Taken 13 February.
These are the only residents likely on this piece of land in the near future.

There are pylon radiata right through the land.
According to someone who lives in the subdivision next door, the Noble owner agreed with the next door owner that there could be a road which goes through both subdivisions, which would allow more sections to be developed on the next door land. Apparently he reneged on the deal so as he could put more sections on the Noble land. In the event he has since died, and both NZTA and the Christchurch City Council have not been allowing the subdivision to be signed off because the roads developed on the land are not sufficient for either reading in general or for roads which a Council will take over when the subdivision is complete.

So the number of sections Noble wanted to squeeze out of the land determined the roads which are not right for the land.

It is being advertised as a block of land, without taking into account the infrastructure put in I guess by Delta, because it looks like you would need to start from scratch.

Someone shifts the cows around the land to keep the grass down.

I could not even find a gullible cow who would tell me they thought the land was worth the $10 to $15 million we are pretending Delta could get out of any possible sale, even if they were the first call on the proceeds rather than being in line after a mortgagee or 2 as well as any others with priority claims.”

[ends]

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:
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

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

Posted by Elizabeth Kerr

3 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Dunedin, Economics, Geography, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning, Travesty

Delta #EpicFail —Yaldhurst Subdivision ● Some forensics

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

Noble subdivision in Yaldhurst empty sites 2013 [Iain McGregor-Fairfax Stuff.co.nz]Noble subdivision in Yaldhurst 2013. Iain McGregor/Fairfax

Received from Canterbury Driver [CD]
Fri, 29 Jan 2016 at 1:01 a.m.

Subject: Delta and how to hide $10M

This correspondent was curious to know the extent of Delta’s exposure on their failed attempt at the Christchurch subdivision market. DCHL chairman Graham Crombie becomes more bashful than a teenage boy at his first disco when discussing the potential numbers in the media. Mr Crombie coyly advises that “millions” are owed and he is confident “millions” will eventually, in the fullness of time be received, albeit a few less million than is owed. Link

Of course, as John Maynard Keynes famously said, “in the long run we are all dead”, and this is also clearly the view of the financier (named by The Press last year as Southpac Property Investments) who has watched years roll by with no interest or repayments, and has called in the mortgage.

However much Mr Crombie wishes to hide in the corner, desperate to be ignored, clutching tight to his chest those precious numbers, he has been upstaged. His CEO Grady Cameron, has tantalised us with a peep of a disclosure in his opening statement in the 2015 Delta Annual Report on the DCC website. Mr Cameron confirms without being specific that Delta have “an outstanding debt” on a Christchurch subdivision and that the “fair value” of the secured debt is independently valued at $13.2M. He notes helpfully that this value was up from $12.8M last year. We can all relax now….

Thus we know that $13.2M is included as an asset somewhere in the Delta accounts. Delta says it has $59.705M of assets in its summary on page 15. But does it really ? Page 25 shows the breakdown of assets with $25.244M of the $59.705M being “trade receivables”. (The rest of the assets are basically plant, equipment and property.) At page 46, in “Note 23” safely buried far from public scrutiny, lies the smoking gun of Delta’s financial assets of $25.244M. There it is, a provision for “Less estimated doubtful debts” of $9.761M, that reduces the figure to $25.244M. This is a highly original description for bad debts, but desperate times call for desperate euphemisms.

So let’s be clear here – more than half of Delta’s financial assets ($13.2M) – amount to a bad debt in a failed subdivision, that is

a) now under mortgagee sale

b) has a third (or fourth) tier finance company as first mortgagee (because the banks would not lend on it)

c) that was built incorrectly, with the incorrect sized roads

d) faces ongoing legal action

e) cannot have titles released

f) has noisy 33KV powerlines running through it

g) has been completed since 2013 with no money received.

Continuing on, the news for the Owners (us) becomes more dire. The $9.761M “doubtful debts” included a carry over amount of $4.837M from 2014, which in turn included a $1.932M provision in 2013. The Yaldhurst (aka Noble) subdivision turned bad in 2012-2013, so it is very likely that the vast majority of the entire $9.761M is a bad debt provision for this heinously bad decision.

What it means is that Mr Crombie cannot possibly be “confident” of having a large proportion of the debt repaid. A large proportion has already been written off, it seems. This is not a “timing issue” as he claims. Delta has already written off up to almost $10M. That would put the total Delta exposure in excess of $20M.

Mr Crombie needs to identify how this proposal came to be put to the Delta board and which board members and executive staff supported it. Releasing board minutes on this item would be helpful for interested ratepayers to understand the history. Mr Crombie should also provide a comprehensive, clear and truthful report to Dunedin City Council with the full facts of Delta’s position and how the council-owned company got into this mess. This may be awkward for Mr Crombie as the people concerned will be well known to him but that is the price and the consequence of the position he chose to accept.

Under a worst case scenario, if Delta recovers very little of the $13.2M they say they will get, their solvency is threatened. Up to 80% of the Delta shareholders equity of $15.804M will disappear, with just $2-3M left. That would mean the shareholders equity to debt ratio would be out of this world. Delta has $26.852M of debt (to DCC). To build back up to the current equity position, which at $15.804M is not high, would mean years of retaining earnings within the company with no dividends to Council. Delta’s position would be so weak that the Council would either have to inject funds or DCC treasury would foreclose on its own company….

Delta in 2015 paid DCC a dividend of $2.5M. Without this in future years there will be significant rate rises each year.

That is bad enough but the bigger issue is how, after similar multimillion-dollar Delta debacles at Luggate and Jacks Point, was this allowed to happen. Dunedin ratepayers owe thanks to Cr Lee Vandervis. His has been one often lonely voice attempting to get to the truth of this matter. We must trust that he and any other like-minded councillors will be able to enforce some accountability onto Delta.

[ends]

Related Posts and Comments:
21.1.16 Delta #EpicFail —Yaldhurst Subdivision
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

Posted by Elizabeth Kerr

3 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Economics, Events, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning, Travesty

Delta #EpicFail —Yaldhurst Subdivision

Received from Christchurch Driver [CD]
Wed, 20 Jan 2016 at 6:35 p.m.

Last year Delta told Council and Dunedin ratepayers to return to their seats and not to worry about a bit of financial turbulence on the Yaldhurst subdivision, pictured.

Yaldhurst Village 1Yaldhurst Village 2Photos: CD 20.1.16

Delta are owed several million (possibly more) and the story was that all is well, even though they have been not paid for about 18-24 months because they have security over the land.

Sadly for Delta and its owners (us) a security means Jack Squat if the FIRST mortgage or prior ranking securities have not been paid.

And of course the first mortgage holder can simply choose to force the sale, and IGNORE lower ranking securities, until all their loan, penalty interest, selling costs, legal fees are covered.

The question of interest is – what is an unusable subdivision going to fetch, Jack Squat perhaps ?

Other Urgent questions for Delta:

1. How much is still owed ?

2. Have they been paid anything on this project in the last year ?

3. What do they know about the forced sale process ?

4. What is the total amount of debt secured against the property that ranks ahead of them ?

5. What is the range of the estimated mortgagee sale price – just a range is fine thanks !

6. Is the company owing Delta solvent, and does it have any other assets that can be pursued ?

7. Which group of directors at Delta authorised this multimillion-dollar project ?

8. Did Delta themselves know or check that the subdivision was not designed to the CCC requirements before they started ?

9. Will anyone be held accountable for this spectacularly inept decision to be involved and any loss resulting ?

[ends]

ODT 18.3.15 Expects Delta to be paid 'millions' [odt.co.nz] screenshotwhatifdunedin screenshot: ODT Online

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:
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

Posted by Elizabeth Kerr

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

12 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Economics, Events, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning, Travesty

Noble property subdivision aka Yaldhurst Village | Mortgagee Tender

Updated post 21.1.16 at 4:35 p.m.

█ Tender now closes 4pm Friday 12 February 2016
http://www.realestate.co.nz/2702107

32.83 ha in 11 lots – http://www.realestate.co.nz/2702107
Listing # AH3988 Listed 28 Nov 2015
Tender closes Friday, 22 January 2016 at 4pm

Confirmation of site as that of Yaldhurst Village (Noble) at http://www.villagelife.co.nz/contact/

[click to enlarge]

Yaldhurst Village Mortgagee Tender [realestate.co.nz - Harcourts]

Yaldhurst Village contact information [villagelife.co.nz]

Yaldhurst Village location map [villagelife.co.nz]

█ Think DELTA. Delta Utility Services Ltd (453486)

█ Think long-in-the-tooth Delta Directors and their consultant(s).

█ Think Grady Cameron (overpaid chief executive).

█ Think Jacks Point and Luggate ($9 MILLION of Dunedin ratepayers’ money down the gurglar – represented as $6M in the Auditor-General’s report).

Same old crew. Same old formula?
Woopsie (Dunedin ratepayers $19 MILLION exposure at Yaldhurst Village – how’s that going – “climbing!”).

█ WHAT NOW ? ? ?

Related Posts and Comments:
20.7.15 Noble property subdivision —DELTA #LGOIMA
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

Posted by Elizabeth Kerr

9 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Infrastructure, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning

Noble property subdivision —DELTA #LGOIMA

Received from Lee Vandervis
Mon, 20 Jul 2015 at 10:06 p.m.

█ Message: I am chasing answers to many questions regarding the Noble subdivision. Two LGOIMA ‘answers’ appear below.
Cheers, Lee

—— Forwarded Message
From: Sandy Graham [DCC]
Date: Mon, 6 Jul 2015 01:58:34 +0000
To: Lee Vandervis
Cc: Sue Bidrose [DCC], Graham Crombie [DCHL], Grant McKenzie [DCC]
Subject: Nobel Subdivision

Dear Lee

I refer to your request for information related to the Nobel Subdivision and respond as follows:

Q1. Can you please supply details and quantify the likely cost of the Delta/DCC exposure to the mortgagee sale of the Nobel Subdivision.
There is a very limited risk to Delta/DCC by way of mortgagee sale. There is however some financial exposure related to the subdivision and this was reflected in Delta’s Annual report for the 2014 financial year.

Q2. Can you please confirm the contractual details [preferably provide copies of the original and any subsequent contracts] that have led to our enormous exposure with the Nobel development.

All contractual details are withheld pursuant to section 7 (2)(h) of LGOIMA to protect the commercial position of Delta and further withheld pursuant section 7(2)(i) of LGOIMA to enable Delta without prejudice, to carry on negotiations.

When considering the request, the public interest was considered. This matter is currently before the Court in an effort to minimise any financial loss to the shareholder. We consider that protecting the legal position best meets the public interest at this time.

Given we have withheld information, you are entitled to a review of this decision by the Office of the Ombudsman.

I have cc’ed the original recipients of your request and the Acting CEO.

Regards
Sandy

Sandy Graham
Group Manager Corporate Services
Dunedin City Council

—— End of Forwarded Message

Note: Noble has been incorrectly entered as ‘Nobel’ by Ms Graham and Cr Vandervis in this exchange. -Eds

Related Posts and Comments:
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….

Posted by Elizabeth Kerr

Leave a comment

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Name, New Zealand, OAG, People, Politics, Project management, Property, Site, Town planning

Christchurch subdivisions: Heat gone?

Received from Lee Vandervis
Mon, 30 Mar 2015 at 10:37 p.m.

█ Message: Your readers may be interested in the claim in the following Press article that the heat has gone out of the Christchurch subdivision market with several other developments in trouble as well as Noble.

### stuff.co.nz Last updated 05:00 28/03/2015
Source: The Press
Gloomy outlook for solar housing in Christchurch
Has liquidation ended development dream?
By Liz McDonald
Is the vision of Highfield Park over? Fast-tracked by the Government and bigger than Hagley Park, the planned north Christchurch subdivision would have had 2200 solar-powered homes. The High Court this week placed its developers, Highfield Park Ltd, in liquidation over unpaid bills from engineering firm Tonkin & Taylor.

The 260-hectare subdivision site is a piece of farmland between Redwood, Mairehau and Marshlands. Its 2013 rezoning for housing was hastened under Earthquake Recovery Minister Gerry Brownlee’s new land-use plan but development stalled last year as the company struggled to find funds. In the meantime, the company’s options to purchase land for the development expired. Highfield Park Ltd is co-owned by the project’s founder, Christchurch engineer Roy Hamilton, his business partner, Brian Thompson, plus other investors.

Hamilton could not be contacted for comment following the court decision but he has previously confirmed the company had returned all section buyers’ deposits after missing project deadlines. Any creditors have until May 12 to contact liquidators about money owed. Highfield Park was intended to be New Zealand’s first solar-powered community and would house 5000 residents, offering ready-built homes as well as sections priced between $160,000 and $240,000. The plan included parks and two commercial areas with shops and cafes. Ground testing has revealed the land was a mix of TC1, TC2 and TC3 land, and needed some remediation. The first section titles were to have been ready by the end of last year.

An experienced Christchurch land developer, speaking on condition of anonymity, doubted anyone else would adopt the project. “The heat’s gone out of the market and it’s not a good time to start launching a major subdivision.” The developer said the Highfield project had struggled without control of the land or sufficient financial backing. He estimated up to $1 million could have been ploughed into the project already.

The development is not the only big-scale subdivision to have hit hurdles. Progress on Groynes Park near Belfast has stalled and its developers have managed to ward off liquidation bids from creditors. The company has promised work will resume soon. Ravenswood, half an hour north of Christchurch, is being offered for sale by developer Infinity Investment Group, which says the project is too big for it.
Stuff Link

Related Posts and Comments:
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….

Posted by Elizabeth Kerr

3 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, SFO, Site, Town planning

Noble property subdivision —DELTA

Received from Lee Vandervis
Tue, 24 Mar 2015 at 7:26 p.m.

█ Message: I have received confirmation today that DELTA are not just in a bad debt situation plus $1.5 million invested with the stalled Noble subdivision, but that they have subsequently invested even more in the Noble development than I had indicated yesterday.
Further claims from my business contacts associated with the Noble Subdivision are as follows:

“You are correct that Delta bought $1.5 million of Gold Bands first mortgage (a couple of years back).
Delta also bought another $1.5 million of the first mortgage recently (off Avanti Finance who had previously bought this off Gold Band).

Delta (Dunedin ratepayers) also appear to be funding Gold Bands current High Court attempt to defeat [ ] caveats in a mortgagee sale. The sole purpose of this High Court action [ ] is so Delta as second mortgagor can profit at the expense of the private citizens prior interests.”

Below is a representative title for the Noble subdivision.
As you can see there is a mortgage on the titles which tells you which other titles are involved, and a myriad of caveats.
In short, DELTA have bought heavily into a stalled litigious mess, with far too many similarities to their Jacks Point/Luggate debacle.

Kind regards,
Cr. Lee Vandervis

█ Email Attachment: Copy title re Noble Investments Ltd

Noble Subdivision representative title

18.3.15 ODT: Expects Delta to be paid ‘millions’

Related Posts and Comments:
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II….

Posted by Elizabeth Kerr

14 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, SFO, Site, Town planning

Noble property subdivision: “Denials suggest that we have not learned.”

Received from Lee Vandervis
Mon, 23 Mar 2015 at 2:48 p.m.

█ Message: It appears that ODT reporter Eileen Goodwin who so accurately broke the Noble subdivision story last week may not be allowed to continue to write on this follow-up as below. Consequently, I am forwarding the information as follows which I have received outside of DCC briefings to you in the hope that you may be able to help get public answers to questions raised that have traditionally been unavailable to this Councillor from the non-public DCC/DCHL.

—— Forwarded Message
From: Lee Vandervis
Date: Mon, 23 Mar 2015 11:40:51 +1300
To: Eileen Goodwin [ODT], Nicholas George S Smith [ODT]
Conversation: Noble property subdivision and Jacks Point/Luggate debacles. Denials suggest that we have not learned.
Subject: Noble property subdivision and Jacks Point/Luggate debacles. Denials suggest that we have not learned.

Hi Eileen,

Thank you again for your accurate quoting and for grasping the nettle regarding the Delta/Noble subdivision debacle.
I still am unable to ascertain precisely how many millions are at risk via DELTA, but an old business acquaintance of mine who claims to have reasonable knowledge of the project has given me the following information on the basis of complete confidentiality. It seems quite possible given the development scale. Hopefully you will be able to confirm some of the following with your media resources.

“Delta exposure is close to $19 million, about $1.5 million of that was cash investment to buy a portion of the first mortgage. Discussions have been for Delta to invest another nearly $4 million in cash to try and secure the balance of the first mortgage and a share of road adjustments.”

This is the most specific estimate of potential losses that I have received, but it accords with some other less specific estimates.

Information from other business people that I know personally suggests that Mr Crombie’s 18/03/15 ODT statement that “the situation should not be compared with Delta’s costly failed property investment at Jack’s Point” is misleading.
Both ‘investments’ are enormously expensive property speculations with enormous amounts of Dunedin ratepayers’ cash being used to gamble on high-risk ventures.
Both are speculative residential property subdivisions about 4 hours travel from Dunedin.
Both subdivision projects have had the involvement of Peak Projects International as Project Managers as indicated on their website http://www.peakprojects.co.nz/proj_infra.aspx
Both projects appear to have had the pivotal involvement not just of DELTA and sole surviving DCHL/DELTA Director Stuart McLauchlan but also of ex-DELTA Director Mike Coburn, although Mike Coburn’s centrality to the Noble development as a consultant is just business hearsay at this stage.
Both projects appear to have involved high levels of misrepresentation to Councillors, and lack of planning and foresight by DELTA.

Since I was first elected in 2004 I have had an on-going stream of complaints and allegations of mismanagement within DELTA, and this stream has periodically swollen since CEO John Walsh was replaced by CEO Grady Cameron. Allegations of massively top-heavy DELTA management, wasteful purchases of; management vehicles, plant and equipment, and overvalued smaller businesses etc. have come to me from DELTA staff, relatives of staff, and other involved business owners and their employees.
When I made a LGOIMA request for DELTA salary levels several years ago and discovered that CEO Cameron was on $460,000+ p/a when our DCC Paul Orders was ‘only’ on $350,000 p/a I went to advise CEO Orders whose response was “Yor forkin jokin!” Like my 2011 complaints of Citifleet fraud however, he seems to have done nothing about this top heaviness.
I have also for many years been calling for a restructuring of DELTA in non-public with the aim of maximising ratepayer value for the sale of DELTA and associated AURORA businesses, but the needed restructuring has not happened. Instead the current proposal is to spend $139,000,000 on ‘infrastructure upgrades’ for Aurora, which I interpret to mean expensive catch-up on long deferred maintenance with many contracts going to DELTA.

My reasons for now going public include the poor result achieved for ratepayers for my mostly non-public efforts to expose the Jacks Point/Luggate DELTA debacle, and the unwillingness again of DCC/DCHL personnel to face facts and clean out those responsible for such awful ratepayer losses now threatened with the Noble subdivision.

Kind regards,
Cr. Lee Vandervis
—— End of Forwarded Message

█ 18.3.15 ODT: Expects Delta to be paid ‘millions’

Related Post and Comments:
17.3.15 DCC —Delta, Jacks Point Luggate II….

Posted by Elizabeth Kerr

8 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, SFO, Site, Town planning

DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

Updated post Wed, 18 Mar 2015 at 5:11 p.m.

What if? was quietly advised some weeks ago that another but lesser-sized example of the multimillion-dollar Jacks Point and Luggate shenanigans (read $9m loss to Dunedin ratepayers) by Delta is complicating the city council books.

We all know how deeply distressing the Jacks Point Luggate coverup by Dave Cull’s council was – assisted by the Auditor-general and the Serious Fraud Office (SFO) – to the Ratepayers who erupted in disbelief on publication of the Delta investigation.

Delta has been involved in another failed subdivision (don’t scream) – the Noble Village Subdivision off Yaldhurst Road, Christchurch (google that) – see Noble Investments Ltd.

It’s on the public record that a bankruptcy is involved. Name: Gordon Ralph Stewart. Check out the New Zealand Companies register.

Old news – some of the flavour: http://www.stuff.co.nz/the-press/business/your-property/8966113/Probe-into-subdivisions-roads

ODT are on the scent. See tomorrow’s newspaper. >> Go to Comment.

Grady Cameron (tweaked)

You know the huge salary that Delta’s so-called “go-getter” earns? We want a lot of that back. Back dated. Past due.
.

Related Post and Comments:
Delta: Report from Office of the Auditor-General (20.3.14)
.

█ AUDITOR-GENERAL’S OVERVIEW and FULL REPORT (Jacks Point Luggate) at http://www.oag.govt.nz/reports/2014/delta

Posted by Elizabeth Kerr

35 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, SFO, Site