Christchurch City Council : Highly Dubious Entity #YaldhurstSubdivision

Subject: Ongoing Property Dispute at Yaldhurst Subdivision

Christchurch City Council held a full council meeting on 27 July 2017.

Readers, the CCC meeting video of Agenda item 26, about Yaldhurst Subdivision, is recommended viewing/listening.

Legal advice to Council is given by Rob Goldsbury, CCC Head of Legal Services – an atrociously lacklustre, unjust and obstructive performance.

The Council stupidly steps itself into (again!) the Constructive Fraud Action being progressed at the Christchurch High Court by Residents/Caveators of the Yaldhurst Subdivision. Although, we see that Councillors supposedly have no idea they’re already in it up to their eyeballs through the actions of Council staff and issues of non-compliance. Interesting.

Christchurch City Council Published on Jul 26, 2017
Christchurch City Council VIDEO
27.07.17 – Item 26 – Yaldhurst Village Subdivision – Dedication of Road – Sir John McKenzie Avenue

The video continues at about 1:26 after a preliminary silence [muted blue screen] – keep watching. The quality of picture is poor throughout. The discomfort of those seen in the public gallery is most perceptible.

Meeting Agenda and Unconfirmed Minutes follow here below – minus Attachment A, Yaldhurst Village Lots 601,613 Plan.

The Council did not vote unanimously.

The Halswell-Hornby-Riccarton Community Board motion was lost.

With the second motion, in short, the Council resolved that Lots 601 (residential) and 613 (commercial) on LT 448725 will be dedicated under Section 349 of the Local Government Act 1974 as a road, in order for the road to vest.

The resolution goes against the Residents’ private property rights.

See the previous post to refresh on the Residents’ situation.

Note, by the votes for, the dishonesty and incompetence present.

Note, by the votes against, the integrity of those supporting the Community Board and members of their community: the private property owners (the Residents), in their protracted, brave and courageous fight against an unjust malevolent council staff working in cahoots with unscrupulous developers.

Vicki Buck is a class act.
Rob Goldsbury, an utterly shameful man.

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Christchurch City Council
Agenda

Notice of Meeting:
An ordinary meeting of the Christchurch City Council will be held on:

Date: Thursday 27 July 2017
Time: 10.05am
Venue: Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

….

[agenda item]
Halswell-Hornby-Riccarton Community Board

26. Yaldhurst Village Subdivision – Dedication of Road – Sir John McKenzie Avenue ………. [page] 529

[the report]
Council
27 July 2017

Report from Halswell-Hornby-Riccarton Community Board  – 13 June 2017
 
26. Yaldhurst Village Subdivision – Dedication of Road – Sir John McKenzie Avenue
Reference: 17/733313
Contact: Richard Holland richard.holland@ccc.govt.nz 941 8690
 
Note that this report was left to lie on the table at the Council meeting on 6 July 2017.
 
1. Staff Recommendations
 
That the Halswell-Hornby-Riccarton Community Board recommend to the Council:

1. That Lots 601 (residential) and 613 (commercial) on LT 448725 will be dedicated under Section 349 of the Local Government Act 1974 as a road, in order for the road to vest.

2. Note that a Deed of Indemnity will be executed by Infinity Yaldhurst Limited which will indemnify and keep indemnified the Council from all actions, proceedings and claims made by any land owner in relation to the Council accepting the dedication of Lots 601 and 613 on LT 448725, as road.

3. Also note that the Council shall not be required to issue a Section 224(c) Certificate under the Resource Management Act 1991 in respect to Lots 601 and 613 on LT 448725 until all the safety audit requirements as specified by the Council, and included in the Variations of the subdivision consent, have been physically built to the Council’s satisfaction.

4. That the General Manager City Services be delegated authority to negotiate and enter into on behalf of the Council, such documentation required to implement the dedication.
 
2. Halswell-Hornby-Riccarton Community Board Recommendation to Council
 
Part A

That the Halswell-Hornby-Riccarton Community Board recommend to the Council:

1. Option 2 of the staff report, namely, That the Council not agree to a dedication process and inform Infinity Yaldhurst Limited to pursue the matter through the Courts in accordance with the Property Law Act.
 
2. That the Council agree to meet with the adjoining property owners to discuss options on a way forward regarding the Yaldhurst Village Subdivision.
 
Vicki Buck and Anne Galloway requested that their votes against the above decision, be recorded.
 
Attachments
There are no attachments for this report.

Delta | Infinity | CCC staff collude to defeat Yaldhurst residents (again)

Yaldhurst Subdivision (former Noble Subdivision)

S T A T E ● O F ● P L A Y

Christchurch City Council is failing to ensure compliance with the subdivision consent and is then assisting the developer Noble/Delta – Infinity/Delta, to screw the Yaldhurst residents.

[click to enlarge]

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About five of the affected Yaldhurst residents gave deputations to the full meeting of the Christchurch City Council on Thursday, 6 July 2017.

Prior to the meeting, the Infinity Joint Venture of which Delta is a majority partner (with its $13m gift investment from Dunedin City Council) had convinced CCC staff to sway Christchurch City councillors to vote for the dedication of private roads as opposed to vesting ownership in the Council. This in the attempt to first defeat land covenants the affected residents have over the property registered in 2003 to protect their inclusion in any subdivision. However, Land Information New Zealand (LINZ) cannot accept roads vesting in ownership with the Council when there are any encumbrances on the land – such as the residents’ covenants.

For the residents, Colin Stokes, at the council meeting, distributed to councillors a review of what CCC staff have done over the years.

Of course, as the facts flow they continue to entwine around Delta.

The residents are fighting to protect and enforce their rights in the subdivision consent; and to halt Delta and their Southern associates’ onslaught against them.

****

Received from Colin Stokes (Yaldhurst resident and caveator)
Wed, 12 Jul 2017 at 9:16 a.m.

Thanks for your ongoing support Elizabeth

Chris Hutching’s piece (The Press 10.7.17) is weak and void of facts that present our case.

● We have Land Covenants registered over all the land in 2003 to protect our inclusion in any subdivision – our specific Access Lot road has to be formed and vested to Christchurch City Council standards with CCC as a term of extinguishment of the covenants.
● The encumbrance on the land prevent vesting of roads as LINZ won’t allow roads to vest with the council with them on.
● Infinity/Delta behind closed doors with CCC staff came up with a scheme to dedicate the roads under old rules (not compliant with the RMA and the subdivision consent) so as to circumvent our covenant protection.
● The real story is that CCC is breaking rules and NOT requiring compliance with the subdivision consent so as to cheat the residents of their protection and their interests protected by that protection so as CCC and the developer can cut them out of the subdivision.
● CCC and the developer Noble/Delta – Infinity/Delta have taken conditions out of the consent, varied the consent, and permitted non-complying undersized infrastructure that makes our part of the subdivision impossible – specifically stormwater pipes and basins required on the lower lying developers’ land which is where the consent (and physical topography and site layout) requires our stormwater to go.
● CCC failing to enforce the conditions of the consent as the law requires means our Access Lot road cannot be formed, meaning we can not subdivide.
● Delta with the misuse of mortgagee powers passed the property to itself, or at least part of the property ($13.4m of an $18.35m “sale” = 73% of which $12.5m was left in the property in passing it to Infinity in the orchestrated “sale”).

[ends]

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Prepared Summary and Review with subdivision plans as tabled at Christchurch City Council’s meeting (6 July), to assist understanding:

███ D 2017 07 04 Summary and Review of Circumvention of Covenants for Councillors Yaldhurst (16 pages)

1 Plan RMA92009135

2 Plan RMA92009135 hlite

The coloured plan shows the residents’ Access Lot between green lines going from Yaldhurst Rd and then dog-legging east to west. What is inside the yellow border is what is within the Subdivision Consent (note there is an internal yellow small 2 sites that are NOT in the consent – and 3 other of the residents’ lots in common ownership on the NS leg are not included in the consent).

It is this east west leg of the Access Lot that requires widened roading to enable the Lots each side to be subdivided pursuant to:-
– 2002 Agreements for sale and purchase (and 2008 further agreement)
– 2003 Registered Land Covenant Protection [see Summary and Review, page 1 para 2 for terms of extinguishment]
– 2009 Subdivision Consent (Condition 5 and stormwater Conditions for it 9.) [see Summary and Review, page 5 para 12]

The problem is
– the Security Sharing Joint Venture (Noble/Delta/Gold Band) SSJV designed and constructed their part of the subdivision such that it made the East West Access Lot owners (residents) parts of the subdivision impossible AND that the Council permitted this.

– Undersized stormwater infrastructure was corruptly installed without consent to NOT include the residents’ subdivisions (all the while falsely assuring residents it did).

– The stormwater is required to be on land the residents transferred to the developer in return for this stormwater and other provisions. It is required to be there for numerous reasons including physical and legal reasons;
* Residents transferred the land in return for this provision
* 2003 Land Covenants protect this land for that provision (required for the Access Lot Road to be formed and vested)
* 2009 The Subdivision Consent requires it to be on the developers’ land (Condition 9.5 which “disappeared”) [see Summary and Review, page 5 para 12 and page 10 email 16 Feb 2010]
* Residents that are part of that subdivision consent have the legal rights to the stormwater (s134 RMA) – the Council is refusing to enforce the conditions of the consent; and permitted the developer to NOT comply with the conditions.
* Land topography and layout physically requires it to go there. The land slopes High NWest to SEast Low

– Delta went ahead and constructed the infrastructure without legal consent – [see Summary and Review, page 10 email 22 Aug 2012]
* This is akin to a builder building a house without consent.
* Council failed to issue an abatement notice for works being complete without consent, and to non-complying standards.

For all the Council staff failings, and the consent holders and JV partners’ failings and corruption of making the residents parts of the subdivision impossible:-
– Delta/Infinity and Council staff are recommending to the Elected Council to vote to circumvent the residents’ Land Covenants so:-
* the residents roading and subdivisions will no longer be protected and will be impossible;
* the JV Infinity/Delta will make more profit by not having to comply with the conditions of the consent that requires the residents’ roading and inclusion (as above)
* Council staff “mistakes” and wrongdoing of permitting non-complying works and not enforcing the conditions of the consent (as required by law) will be covered up.

– Delta and DCC was the facilitator of transferring the property from the Delta/Gold Band/Noble Joint Venture to the Delta/Infinity Joint Venture.
– Delta (illegally) owned 67.5% of the 1st mortgage and controlled Gold Band through their Security Sharing JV.
– Delta’s assurances it had nothing to do with the mortgagee sale is a lie.
– Delta refused to allow Gold Band to accept offers to redeem the 1st mortgage (illegal under s102 & s103 Property Law Act).
– DCC refused to allow redemption of the 1st mortgage.
– DCC (and Delta) refused to accept assignment of the 1st mortgage when Colin Stokes and another (as parties with interests in the land entitled to redeem) offered it to them
* had they done, Delta could have registered about an additional $16m in agreements to mortgage they were sitting on
* all that was required in return was “our little road” which is a LEGAL REQUIREMENT of the subdivision consent in any event.

[ends]

As reported by The Press, the eight-year dispute involving the stalled Yaldhurst subdivision has now gone to mediation between the property owners and the developers.
The dispute has been aired in several High Court cases between the private landowners and the developers, which are continuing.

Related Post and Comments:
11.7.17 Delta has deep fingers into 8-year subdivision dispute at Yaldhurst

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Asbestos contamination at Dunedin Railway Station

[womentravelnz.com]

There’s a new tenancy at the Dunedin Railway Station.

People working on the project had been told the whole underfloor area was safe to enter; that there was plastic down.

Turns out the plastic cover ran short, and a number of site workers had crawled across bare dirt, kicking up a lot of dust as they went – it was found the area had been contaminated with asbestos.

We understand workmen from several companies have been affected.

The Dunedin Railway Station is a council owned property. Affected sitemen have since had their names added to the WorkSafe Asbestos Exposure Database; and Health and Safety meetings have been called to review safety drills and gear provision.

It appears a few people have slipped up along the ‘food chain’ of managerial responsibility for the workers, starting with DCC management (the building owner).

We hear DCC is now paying for workers to be educated on what protection gear they must wear on exposed asbestos worksites.

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Related Post and Comments:
19.6.16 Thoughts on ODT Insight : Chris Morris investigates Asbestos plague

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta has deep fingers into 8-year subdivision dispute at Yaldhurst

Blind Justice (detail) by Beeler – Columbus Dispatch 2016 [caglecartoons.com]

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### Stuff.co.nz Last updated 17:37, July 10 2017
Delta and Infinity’s Yaldhurst subdivision dispute at mediation
By Chris Hutching – The Press
An eight-year dispute involving developers and a group of property owners in a stalled Christchurch subdivision has gone to mediation. Late last year Dunedin City Council agreed to authorise its Delta Utilities company to refinance a $13.4 million outstanding debt to go ahead and complete the Yaldhurst development along with Wanaka-based developer, Infinity. To allow the development to proceed, Christchurch City Council staff recently recommended the unusual step of “dedicating” the access road rather than “vest” it with the council. But a representative of the private property owners, Colin Stokes, told city councillors that his group’s rights to compensation for land for the road had not been addressed. […] The dispute has been aired in several High Court cases between the private landowners and the developers, which are continuing. Most people who originally signed up to buy properties at the subdivision have pulled out and meanwhile Christchurch’s residential property market has cooled significantly.
Read more

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Related Posts and Comments:
15.6.17 Site Notice : post(s) removal [we heard from Steve Thompson’s solicitors]
4.3.17 Christchurch housing : ‘If you build the right thing, buyers will still come’
17.2.17 Gurglars visits the Delta/Noble JV subdivision at Yaldhurst
2.2.17 Hilary Calvert complaint to Auditor-General #DCHL
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
12.12.16 Deloitte report released #Delta #Aurora
7.12.16 Audit and Review, Deloitte
26.9.16 Delta #EpicFail —Epic Fraud #14 : The Election and The End Game revisited
22.9.16 DCC : Delta deal 1 Aug 2016 Council meeting (non-public) #LGOIMA
9.9.16 Calvert on DCC, ‘We could have a much more democratic and transparent operation of council’
2.9.16 Delta Yaldhurst : Local Opinion + Update from Caveators via NBR
18.9.16 Delta #EpicFail —Epic Fraud #13 : Councillors! How low can you Zhao ?
26.8.16 Delta #EpicFail —EpicFraud #12 : The Buyer Confirmed
24.8.16 Delta peripheral #EpicFail : Stonewood Homes —Boult under investigation
8.8.16 Delta #EpicFail —Epic Fraud #11 : The Buyer
3.8.16 LGOIMA requests to DCC from Colin Stokes #Delta #Noble #Yaldhurst
1.8.16 Delta #EpicFail —The End Game according to CD
31.7.16 Delta #EpicFail —Epic Fraud #10 : The Beginning of the End : Grady Cameron and his Steam Shovel
29.7.16 Delta #EpicFail —Epic Fraud #9 : The Long & Winding Road…. Leads Back to Delta’s Door
21.7.16 Delta EpicFail #8 : Cr Calvert goes AWOL, 23 Questions for Mr McKenzie —Saddlebags !!
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
17.7.16 Delta #EpicFail —Epic Fraud #7 : The Long & Winding Back Road
15.7.16 Delta #EpicFail —Epic Fraud #6 : What do you mean, Property Law Act ?
12.7.16 Delta #EpicFail —Epic Fraud #5 – Delta and the ghostly hand of Tom Kain
8.7.16 Delta #EpicFail —Epic Fraud #4 : Tales from the Courtroom….
30.6.16 Delta #EpicFail —Epic Fraud #3 : Security Sharing and not Caring….. who’s got that Constricting Feeling ?
27.6.16 Delta #EpicFail —Epic Fraud #2 : WWTKD – What Would Tom Kain Do ?
5.6.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
13.3.16 Delta #EpicFail —Noble Subdivision : [rephrased] Conflict of Interest
11.3.16 Delta peripheral #EpicFail : Stonewood Homes and ancient Delta history
6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
21.1.16 Delta #EpicFail —Yaldhurst Subdivision

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Downer EDI buys Hawkins businesses

At Facebook:

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Downer EDI – Media Release
Downer acquires Hawkins businesses in New Zealand

08/03/2017
Downer EDI Limited (Downer) announced today that it had signed an agreement to acquire the construction, infrastructure and project management businesses of Hawkins, a New Zealand company, from the McConnell Family.
The Chief Executive of Downer, Grant Fenn, said Hawkins was an excellent strategic fit for Downer’s New Zealand business.
“Downer has a long and proud history in New Zealand that can be traced back more than a century,” Mr Fenn said. “Today we are a leading provider of services to our customers in a range of markets including transport, telecommunications and water.
“Hawkins is a New Zealand industry leader in construction and infrastructure and this acquisition will complement our existing Engineering, Construction and Maintenance capabilities while also providing a platform for growth. It is estimated that over NZ$50 billion will be invested in non-residential construction in New Zealand over the next five years.”
Mr Fenn said Hawkins would continue to operate under its current brand.
“Hawkins was founded in New Zealand 70 years ago and its highly skilled management team has built a strong reputation for delivering quality projects for its customers in both the public and private sectors,” he said.
Hawkins has a number of high profile projects across its portfolio including the SH16 Lincoln to Westgate upgrade, the construction of Auckland’s Park Hyatt Hotel, the Pier B Extension at Auckland Airport, Wellington Airport’s Rongotai Control Tower, Wellington City Council’s Arlington Housing Project, the Christchurch Town Hall, and the Avon River Precinct (Christchurch).
Mr Fenn said the acquisition would be funded through existing debt facilities and be earnings accretive in its first year.
The transaction is due to be completed on 31 March.

[ends] Downer EDI Link

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Hawkins – Media Release
Hawkins Ownership to Change

8th March 2017

Hawkins is pleased to announce that Downer is acquiring Hawkins’ construction, infrastructure and project management businesses from the McConnell Family. This offers a new era of opportunity for both organisations. Hawkins Construction will retain its brand and continue as an ongoing business. Hawkins Infrastructure, which complements Downer, will be integrated into its existing Infrastructure business. Together we look forward to continuing our proud New Zealand heritage of building better communities, with passionate people and great projects. Link

[Hawkins full announcement]

DOW / Announcements
Downer acquires Hawkins business in New Zealand
8:39am, 8 Mar 2017 | ASSET

8 March 2017
DOWNER ACQUIRES HAWKINS BUSINESSES IN NEW ZEALAND
Downer EDI Limited (Downer) announced today that it had signed an agreement to acquire the construction, infrastructure and project management businesses of Hawkins, a New Zealand company, from the McConnell Family.
The Chief Executive of Downer, Grant Fenn, said Hawkins was an excellent strategic fit for Downer’s New Zealand business.
“Downer has a long and proud history in New Zealand that can be traced back more than a century,” Mr Fenn said. “Today we are a leading provider of services to our customers in a range of markets including transport, telecommunications and water.
“Hawkins is a New Zealand industry leader in construction and infrastructure and this acquisition will complement our existing Engineering, Construction and Maintenance capabilities while also providing a platform for growth. It is estimated that over NZ$50 billion will be invested in non-residential construction in New Zealand over the next five years.”
Mr Fenn said Hawkins would continue to operate under its current brand.
“Hawkins was founded in New Zealand 70 years ago and its highly skilled management team has built a strong reputation for delivering quality projects for its customers in both the public and private sectors,” he said.
Hawkins has a number of high profile projects across its portfolio including the SH16 Lincoln to Westgate upgrade, the construction of Auckland’s Park Hyatt Hotel, the Pier B Extension at Auckland Airport, Wellington Airport’s Rongotai Control Tower, Wellington City Council’s Arlington Housing Project, the Christchurch Town Hall, and the Avon River Precinct (Christchurch).
Mr Fenn said the acquisition would be funded through existing debt facilities and be earnings accretive in its first year.
The transaction is due to be completed on 31 March.

For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61 439 470 145

About Downer
Downer EDI Limited (Downer) is a leading provider of services to customers in markets including: Transport Services; Rail; Mining; Utilities Services; Technology and Communications Services; and Engineering, Construction & Maintenance. We build strong relationships of trust with our customers, truly understanding and predicting their needs and bringing them world leading insights and solutions. Downer employs about 19,000 people across more than 200 sites and projects, mostly in Australia and New Zealand, but also in the Asia-Pacific region, South America and Southern Africa. For more on Downer, visit: http://www.downergroup.com.

About Hawkins
Hawkins was established in Hamilton in 1946 by Fred Hawkins and has steadily grown over seven decades to become a leader in New Zealand’s infrastructure and project delivery. Hawkins employs about 700 people and specialises in the design and construction delivery of buildings and infrastructure that create stronger communities across New Zealand and also the Asia Pacific. For more information on Hawkins, visit http://www.hawkins.co.nz

Attachments
Downer acquires Hawkins business in New Zealand (PDF)

[ends] Hawkins Link

Aurora Energy at ODT 24.2.17 follows #LGOIMA

Broad spectrum (?!) LGOIMA request from earlier this week and interim acknowledgement:

From: Elizabeth Kerr
Sent: Monday, 20 February 2017 7:24 PM
To: Grady Cameron
Cc: Elizabeth Kerr
Subject: Aurora Energy Ltd – Official Information Request (LGOIMA)

Attention Grady Cameron
Chief Executive, Aurora Energy Ltd

Dear Grady

How is Aurora Energy Ltd funding the $30million pole replacement programme you speak about – from capex (capital expenditure), opex (operational expenditure), a combination of the two? or by other means? (please state)

Will Aurora Energy Ltd attempt to raise line charges for Otago power consumers, to achieve the number of (dangerous) pole replacements required in the next 3-5 years – how soon will line charges increase and by how much given regulatory scrutiny by the Commerce Commission?*

Is Aurora Energy Ltd solvent at this time? Explain.

Please provide any financial detail(s) salient to these matters.

Sincerely

Elizabeth Kerr
Dunedin

*emphasis added 24.2.17

—————————————-

From: Grady Cameron
Sent: Wednesday, 22 February 2017 1:02 p.m.
To: Elizabeth Kerr
Subject: Aurora Energy Ltd – Official Information Request (LGOIMA)

Dear Elizabeth

Thank you for your enquiry. We acknowledge receipt of your official information request received by us on 21 February regarding Aurora Energy (our reference 0945).

We will endeavour to respond to your request as soon as possible and in any event no later than 21 March, being 20 working days after the day your request was received. If we are unable to respond to your request by then, we will notify you of an extension of that timeframe.

Kind regards,
Glenda

****

Received.
Fri, 24 Feb 2017 at 1:58 a.m.

[click to enlarge]

ODT 24.2.17 (page 4)

ODT 24.2.17 (page 5)

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 10 : Grady Cameron : The Counterfeit Comet

Received from Christchurch Driver [CD]
Thu, 16 Feb 2017 at 12:15 a.m.

Dear Readers

Local cyberspace has run hot tonight with the news that Grady Cameron has finally taken Richard Healey’s advice and fallen on one of his many splintered power poles, tendering his resignation. But just like a funhouse hall of mirrors, nothing at Aurora/Delta is as it seems. Mr Cameron is leaving later not sooner. It should be sooner, much sooner, like now.

As pointed out several times by Jarrod Stewart and Richard Healey, Grady is entirely the wrong individual to “oversee the transition process, along with the accelerated pole programme now under way”, which was the vague treacle proffered by Gary Gyroscope Johnson and Mr Thompson as an excuse for Mr Cameron to cling on for another year.

What the somewhat dim Mr Thompson does not know is that most of Delta already know what provision for early termination is in Grady’s package, and it is….12 months’ salary. (Hard to keep anything secret at Delta these days, Mr Thompson!) Go on, refute that “unfounded speculation”, Mr Gyroscope!

Therefore Mr Thompson had the two terminally unattractive options of 1) Paying Grady $600,000 to do nothing or 2) Paying Grady $600,000 to hang around and pretend that his help is “appreciated”. Chairman Thompson knew he would be sacked if he agreed to pay Grady $600,000 to do nothing, because What if? Dunedin and many others would find out in short order, and it would be curtains for Mr Thompson – sooner rather than later. However, Mr Thompson has made an elementary error. When you sack someone, get them gone. This is not Personnel Management 101, it’s 001. Despite $600,000 being a lot of cash, it was still the right thing to do because Grady’s other great failure as CEO was to preside over the accelerated decline of the staff at Delta.

It is past the tipping point and on its way to collapse, and if Grady stays another year collapse it will. At this stage in your correspondent’s post, the Greek chorus begins, accompanied by the rattling cups of Choysa : Evidence, evidence, give us the factual evidence!

Very well readers, have the Gaviscon ready, here are some stomach turning informational nuggets to show the appalling state of the Delta engineering department, the essential core of the organisation. Desk executive types like Grady and Matt Ballard can come and go, but the engineers make the place run.

While Mr Gyroscope and Mr Thompson trumpeted the two new external appointments today, they failed to mention that there are 45 vacancies – yes 45, that is 4 lots of 10 plus 5, Steve, at Delta.

Your correspondent understands these are in the main technical positions that any reputable company will have trouble filling, let alone a basket case like Delta.

Very recently, a capable senior design engineer was asked by either Matt Ballard or Grady “What would it take to get you to stay?”, as they had been alerted that the engineer was about to vote with his feet. “Nothing could convince me to stay” was the response and the engineer who was in the prime of his career and had worked for Delta for 6-7 years, departed to the North Island.

Next fact: There are now fewer than 10 design engineers left at Delta. There will be one less tomorrow because another resigned today but hadn’t advised The Management.

Alarming fact : Your correspondent is advised that of those left, at least three already have plans in place to leave that are not negotiable.

Strange but true : A design engineer recently resigned. Mule-like, Mr Cameron and his cohorts “refused to acknowledge his resignation”. This would appear to be code for “we will pay you absolutely anything you want because we know we will get no applicants for your position”, much like the example above. We can conclude from the example with Derek Todd quoted in #EpicPowerFail 9 that the practical limit is a tripling in salary.

There’s more : After deducting out those engineers, there are others actively looking to leave also. We can know this with confidence as a Wellington power company advertised a position for a design engineer recently. The recruiter called a contact at Delta and asked “What the heck is going on down there – we have had 4 applications and 3 of them are from Delta !!”

Grady’s response to this is to hire engineers from around the world, and try and fill engineering positions with “Project Managers” (Godfrey Brosnan is just the latest example). This is not to denigrate those with overseas qualifications or from a different culture but as Richard Healey notes, this is a dangerous high risk industry and ‘culture’ is important. Experienced local engineers with institutional knowledge and memory are priceless – and absolutely essential. The legacy of Grady and successive incompetent boards is that Delta and Aurora, are very likely to be left with somewhere between very few and almost none.

Your correspondent is given to understand that there is a funereal level of staff morale. Many staff around all departments have the view that (Delta)Aurora is only a few more key resignations away from being unable to function as a lines company. Richard Healey may be able to comment further on this.

The common theme from departed staff is that they would not work any longer under the management regime.

Normally your correspondent likes to finish with what he fondly imagines to be a witty riposte, but after surveying the decayed remnants of Aurora, humour is not appropriate. 

Since 2009, Grady Cameron has blazed across our power line landscape like a counterfeit comet. Grady’s disastrous tenure has created a giant financial crater for the city that will have to be made good by ratepayers for around twenty years – most of a generation.  

While not solely responsible, he encouraged a culture of cynical disinterest in the long-term health of the company he was charged with protecting, to flourish.

There is no wit to be had here, but justifiable anger. 

[ends]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: ODT 16.2.17 Cameron will not seek new role page 3 detail tweaks by whatifdunedin

Grader Cameron to step down as chief executive ● still on payroll

Frankly, until we see Grady Cameron up on charges in court as well . . . .
this is half-pie luke warm (PR managed) news mongering without ANY public accountability for the deliberate corporate degradation of Otago’s power network by Dunedin City Council, Dunedin City Holdings Ltd and the two council-owned companies Aurora Energy and Delta Utility Services.

As What if? noted about the dateline in previous posts care of DCC leaks:

█ OVERPAID Grady Cameron, chief executive of Aurora and Delta, announced today that he will step down from his position before 30 June this year.

However, we haven’t got rid of the award-winning burnt asset arsehole just yet.

● December’s Deloitte report recommended that Aurora (‘lines company and asset owner’) and Delta (‘civil engineering company and contractor’) be separated and governed by separate independent boards.

● Grady Cameron says he is not considering a new position with either company.

● Instead, Mr Cameron will take up an interim position to the end of this year, overseeing next developments for the entities.

****

Newshub broke the story when whistleblower Richard Healey first went public on dangerous poles 19.10.16 [newshub.co.nz]

█ Deloitte review report – Aurora Energy and Delta Utilities (PDF, 1740 KB)
12 Dec 2016: Review of Aurora Energy Limited/Delta Utility Services Limited – Network Safety Concerns

****

Media Release
Aurora Energy begins implementing recommendations of independent review
15 Feb 2017
Aurora Energy has begun the implementation of the organisational changes recommended by the independent review by its shareholder, Dunedin City Holdings Limited.
The first step is to transition to two standalone companies from the middle of the year.
Delta Utility Services and Aurora Energy Chair, Steve Thompson, says there have always been two organisations – Aurora Energy that owns the electricity network, and Delta that provides contracting services to Aurora Energy and other energy and environmental customers and employs the people who maintain the network.

“We about to begin the process of recruiting a new chief executive for Delta and aim to have that person in place by the middle of the year. As the Delta leadership team takes shape, we will provide further updates. We expect to appoint a permanent Aurora Energy chief executive in the latter part of the year.”

“The current chief executive, Grady Cameron, has advised me that he will not take up either of the new roles. He will remain in his existing role until 30 June 2017, after which he will be interim Aurora Energy chief executive until the end of the year.”

“The Board and I are particularly grateful that Grady has agreed to oversee the transition process along with the accelerated pole programme which is now underway,” says Mr Thompson.

A report by consulting firm Deloitte last year prepared for Dunedin City Holdings, made a number of recommendations, including separate board and management structures for Aurora Energy and Delta.

“Grady and his team have already started work on this process, and a number of senior management appointments have been made or are currently being finalised,” says Mr Thompson. The recent appointments establish the new management team and structure for Aurora Energy (see below for executive biographies).
Mr Cameron says the new structure will significantly change the leadership of the two businesses. “My focus now is on assisting the Board and the two organisations with the transition and delivering the pole programme before taking on another role.”

For media enquiries, please contact Gary Johnson on 021 224 2333.
Delta is the infrastructure specialist in energy and environmental services. www.thinkdelta.co.nz

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Aurora Energy executive leadership team appointments

● Warren Batchelor, General Manager Network Performance
(external appointment, starting 20 February)
Responsible for asset management strategy, planning and implementation; manages asset management, network engineering and design and programme delivery teams. Warren brings wide experience in the electricity distribution and manufacturing sectors with a strong focus on asset management, engineering and network operations. He was most recently managing the networks transformation programme for Vector, based in Auckland. Prior to that he has held senior management roles and carried out major change programmes with Aurora Energy (the state electricity provider in Tasmania) and Unison Networks, among others. He holds a Masters in Electrical Engineering from the University of Canterbury.

● Mark Corbitt, Chief Technology Officer
(external appointment, starting 20 February)
Responsible for information technology strategy and operations, network technology development for Aurora Energy, including the future implementation of its new asset management system. Mark brings deep experience in information and communications technology leadership to the organisation. He was most recently Chief Information Officer for Contact Energy based in Wellington. Prior to that he has held senior information and communications technology roles and undertaken significant projects with the Ministry of Justice, Housing New Zealand and Telecom NZ, among others.

● John Campbell, General Manager Operations and Risk
(internal appointment)
Responsible for network operations and customer services, operation of network control centres, strategic risk management and network safety. John has been Operations Manager for the Aurora Energy network since 2015. Prior to that, John had more than 30 years’ experience in the electricity industry including engineering, operations and project management roles at national grid operator Transpower and network engineering and operations for Central Power (Manawatu).

● Alec Findlater, General Manager Network Commercial
(internal appointment)
Responsible for network pricing, connection management, commercial development, customer solutions, regulatory affairs and resource management. Alec was most recently Commercial Manager for the Aurora Energy network. He has in excess of 30 years’ experience in electricity transmission and distribution, with senior roles encompassing design and engineering, contracting and commercial management.

[ends]

Aurora Energy Link

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█ For more, enter the terms *delta*, *aurora*, *grady*, *steve thompson*, *crombie*, *richard healey*, *dchl*, *epicpowerfail* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Richard Healey on Aurora’s asset value —heralds “massive increase in rates”

Just some little things our beloved leader Mayor Cull isn’t talking about urgently with his Councillors and Dunedin ratepayers at large.

M U S T ● R E A D

Excerpts from Richard Healey’s Facebook 14.2.17:

[click to enlarge]

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Related Posts and Comments:
14.2.17 DCC not Delta #EpicFail : Wall Street falsehoods and a world class debt
11.2.17 Shudder : Aurora Energy programme leader likely delusional…
6.2.17 Delta #EpicPowerFail 9 —The Curious Case of Godfrey Brosnan and…
19.1.17 Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]

█ For more, enter the terms *delta*, *aurora*, *grady*, *steve thompson*, *richard healey*, *dchl*, *epicpowerfail* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Shudder : Aurora Energy programme leader likely delusional #retestingpoles

[OR, What to do when Grady Cameron’s much vaunted $30million project sum doesn’t exist anywhere except on Mars]

Defining dangerous workplaces and public disaster —with the largest, most ‘shocking’ capital D. No one has to Die in the plantation… but the level of unknowing company management tells us the risk is too high.

—

[Say what?]

The programme needed to be based on “science and engineering” and not perception. –Godfrey Brosnan

### ODT Online Sat, 11 Feb 2017
Aurora affected by pole, staff shortages
By Vaughan Elder
Aurora Energy might not replace the number of poles it promised as part of its $30million fast-tracked scheme. In a wide-ranging interview with the Otago Daily Times, the man tasked with leading the programme, Godfrey Brosnan, accepted it might not be possible to replace by December all 2910 poles included in the original target.

“I’m not going to get into the tennis match with [former programme director Jarrod Stewart] and Richard [Healey]. All I can say is what my approach is. “What you do is you just race for it. You plant poles — you plant poles at speed but with safety and that’s going to be the approach.”

….The programme was starting next week, 20 days ahead of schedule … Mr Brosnan was unapologetic about the fact Aurora would re-test poles and not replace any deemed up to scratch … “One thing that the public needs to realise and I had to realise as well, is some of these wooden poles are ugly, but it doesn’t mean to say they are falling down.”
Read more

****

ODT Online Thu, 29 Dec 2016
Director for $30m pole project
By Vaughan Elder
Lines company Aurora Energy has appointed a director to oversee its $30.25million pole replacement programme. Two memos sent to staff at Aurora’s sister company, Delta, before Christmas have been leaked to the Otago Daily Times. One is from chief executive Grady Cameron and the other from newly appointed chairman Steve Thompson. Mr Cameron outlined progress on the company’s accelerated plan to replace nearly 3000 poles in Aurora’s electricity network which is spread across Dunedin, Central Otago and the Queenstown Lakes area. He emphasised the scale of the job, saying it would be “one of the largest construction projects in Otago during 2017”. Godfrey Brosnan had been appointed programme director and would report directly to Mr Cameron. “Godfrey is an experienced project manager with a background in complex capital works,” he said. Mr Brosnan’s appointment comes after previous director Jarrod Stewart resigned.
Read more

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Related Posts and Comments:
6.2.17 Delta #EpicPowerFail 9 —The Curious Case of Godfrey Brosnan and Jarrod Stewart
19.1.17 Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]

█ For more, enter the terms *delta*, *aurora*, *grady*, *steve thompson*, *richard healey*, *dchl*, *epicpowerfail* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: pinimg.com – planted poles…
aurora energy logo merge by whatifdunedin

Delta’s Mumbai recruitment drive

Received.
Wed, 8 Feb 2017 at 9:17 p.m.

The answer to Delta’s accelerated delayed stalled pole replacement program.

[webpage screenshot]

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 9 —The Curious Case of Godfrey Brosnan and Jarrod Stewart

Received from Christchurch Driver [CD]
Mon, 6 Feb 2017 at 8:27 p.m.

Dear readers, your correspondent was fascinated to learn of the appointment of Godfrey Brosnan as Aurora’s new saviour (Program Director for the Pole Replacement project), about a month ago, on 29 December 2016. One cannot escape the conclusion that the announcement was timed for maximum concealment. There was no shouting from the rooftops about the appointment of Mr Brosnan, but merely the witless Mr Cameron in full euphemism mode, stating that Mr Brosnan was “An experienced project manager with a background in complex capital works”. Grady, this is a waste of space, just like yourself. What precisely are the “complex capital works” that Mr Brosnan has experience of ? Are they power industry projects ? What does “experienced” mean ? The only experience that is relevant is power industry experience, and we can assume from your vague dissembling, that Mr Brosnan is a novice to the power industry.

Now Dunedin is a small town, and it is not hard to find someone who knows Mr Brosnan. The good news is that in a revolutionary new development, Delta and Aurora have employed someone with integrity to the executive tea room. (Hope you like madeira cake, Godfrey). The bad news is that Mr Brosnan is not experienced in the power industry. Mr Brosnan’s most recent role was involvement in a peripheral capacity on the $445M Christchurch Hospital Acute Services Building project. This building is right in the middle of construction, and will not be finished for at least 18 months, so there we have the first clue about Mr Brosnan : Why was he willing to leave a major project that was barely even half-way completed ? The answer is not that Mr Brosnan had a passion or the right experience to lead the pole replacement project, but merely wanted a job in Dunedin because his school-age family lives here. The position was sweetened no doubt, by the eye-watering amount of money on offer. Reputedly with incentives, the pole replacement director is up around Grady’s fantastical package of $600,000. Mr Brosnan’s lack of experience suits Delta and Aurora : he can be manipulated by being given a flood of fakery by the duplicitous remnants of the original executive team. Mr Godrey’s integrity compounds the profound problem of his lack of experience : People with integrity generally assume a similar level of integrity in their colleagues, which in the case of Delta/Aurora, is going to lead to a disastrous outcome, most likely for Mr Brosnan.

Richard Healey has recently outlined the enormity of the problem facing the pole replacement targets : It is madeira cake to margarine sandwiches that Mr Brosnan was not made aware of the full extent of the problems that are now his.

Readers, as you wash down the Tim Tams with a cup or two of Bell’s, I can hear you thinking – is this just the fevered imagination of CD at work again ? In the words of Walter Mondale, where’s the beef ?

Your correspondent offers as evidence the curious case of the short-lived previous pole replacement director, a Mr Jarrod Stewart. Mr Stewart, a lawyer by background, has achieved fame within Delta by appearing to achieve the impossible : three separate payouts by Delta in the space of a year. Let us count the ways :

1. Delta last year cancelled Mr Stewart’s two-year contract, which he was compensated for.

2. No sooner was the ink dry on that settlement then Delta realised that they did, after all, need Mr Stewart and offered him the position of Pole Replacement Program Director, with a contract package with incentives worth around $600,000.

3. Mr Stewart, not long after accepting the $3,000 per day position, then had misgivings that he might have been subject to a further flood of fakery from Mr Cameron and his cohorts. Mr Stewart then employed a colleague from the mining industry to do a risk analysis of the pole replacement programme and his liability as director of the programme. The risk analysis concluded that Mr Stewart should …, ahem … Get the hell out of there ! The “programme” (if such an ad hoc on-the-fly chaos can be called a programme), was destined to fail, likely with some serious safety consequences, and consequent liability to the head of the project, being of course Mr Stewart at that time. It is understood that Mr Stewart is seeking some form of compensation for misrepresentation that induced him to sign up.

4. Now readers, hold those cups tight : The following is not made up : After Mr Stewart made his dissatisfaction with the pole replacement project known, a Delta senior manager – an Indian gentleman called Mr Kewal Bagal, we understand – on instruction from the highest levels, no doubt – actually broke into Mr Stewart’s office to attempt to find incriminating evidence about Mr Stewart. Mr Stewart is now taking a personal grievance action seeking further damages for this latest act of extreme Delta stupidity.

****

We should be grateful to Mr Stewart that he went public with his concerns in December. Had Mr Stewart wanted to maximise his income and minimise his integrity, he could have emulated one Mr Derek Todd, a senior engineer in Asset Management, and a flawed accomplice of Mr Matt Ballard, the chief propagandist of Asset Management. Mr Todd was the one who told staff that “every extra dollar you spend is a dollar less for the Council”. Mr Todd was implicated in the revelations of deceptions and dishonesty perpetrated by Asset Management in October and November, and unsurprisingly, resigned late last year due to “ill–health”. However, Mr Todd has had an amazing Lazarus-like resurrection to full health over the Christmas break, and is now employed as a “consultant” to Delta at the simply unbelievable figures of between $4,000 – $6,000 per day. That is somewhere north of $1,000,000 per year. Your correspondent understands that the “arrangement” will only extend to March 31, and is for a maximum number of days. It has the look, the structure, and the smell of a hush money payment. Mr Todd likely has damaging information that Delta do not want to see the light of day. Delta also have no money to shut him up. Solution : employ him as a “consultant” in the pole replacement program and book the cost there.

It is hard to fathom how Delta and Aurora and their boards are permitted to stagger onwards by their owners. Aurora is the leper of the New Zealand lines industry. Your correspondent understands that it is not uncommon for no applications to be received for recent positions at Delta and Aurora. Mr Steve Thompson may spout about it being an exciting place to work but the industry has voted with its feet. Delta/Aurora is a place where careers are ended, not made.

One final nugget of information : We must hold our nose about Board chair Thompson’s shady past for a few months, as it is understood that he has been instructed to make life as difficult as possible for Grady Cameron, with the aim of having Grady resign prior to June. Mr Thompson is the enforcer, the Richard Loe of the boardroom. (A role he is familiar with and will relish). Welcome to the bottom of the ruck Grady…watch your eyes.

[ends]

****

Note: Personnel profile according to Aurora Energy’s website:
Kewal Bagal
General Manager Energy and Communication
Kewal (BEE) joined Delta in November 2010. He is responsible for Delta’s delivery of infrastructure services to the energy and communications sectors, including electricity and gas distribution, transmission and generation, retailer services and next generation fibre optic networks. Kewal has experience in leading and managing infrastructure services businesses in both the telecommunications and energy sectors in New Zealand, Australia, and Asia with Transpower, Powermark, Alstom, Telecom and Downer. He leads a highly skilled team of 300 people. [Source: Aurora Energy – Delta ELT]

Related Post and Comments:
19.1.17 Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]

█ For more, enter the terms *delta*, *aurora*, *grady*, *jarrod*, *steve thompson*, *dchl*, *epicpowerfail* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: dishmaps.com – madeira

DCHL —Which ‘Infinity’ were Councillors sold on #funnybusiness

ODT 13.10.16 (page 12)

—

The published reply has no direct bearing on Russell Garbutt’s enquiry.

● INFINITY YALDHURST LIMITED (5886102)
Incorporation Date: 09 Feb 2016
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/5886102

● INFINITY INVESTMENT GROUP HOLDINGS LIMITED (1004601)
Incorporation Date: 06 Dec 1999
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/1004601

● INFINITY FINANCE AND MORTGAGE LIMITED (5920307)
Incorporation Date: 17 Mar 2016
Address for service:
Infinity Finance and Mortgage Limited, 12a Fovant Street, Russley, Christchurch 8042
http://www.companies.govt.nz/co/5920307

—

Related Post and Comments:
22.9.16 DCC : Delta deal 1 Aug 2016 Council meeting (non-public) #LGOIMA

█ For more, enter the term *delta*, *dchl*, *infinity*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicFail —Epic Fraud #14 : The Election and The End Game revisited

Received from Christchurch Driver [CD]
Sun, 25 Sep 2016 at 11:15 p.m.

Firstly, Ratepayers have a debt (yes another one, readers, but put the cudgels away, it doesn’t involve money illegally advanced by Delta) to Vaughan Elder, Cr Hilary Calvert and our What if? site for prising the official information about the August 1 2016 Council Meeting from the DCC. After an extended delay, some records were produced, but “technical difficulties” meant a full audio transcript was not available. How surprising. This is the Council equivalent of “The dog ate my homework, sir”, with the same level of credibility. But of course Mayor Cull will be able to say that he really wanted the transcript because, of course, he is FOR openness and transparency in Council, for the next fortnight anyway —because in response to the latest poll or subtle expression of displeasure from the ODT publishers, Mayor Cull is now a “transparency magnet”, you see.

While it would have been useful to see if any Councillors expressed even the most cursory concern about the deal, before voting to give away $13.2M to a shell company on the most favourable terms in commercial history, the key point is that Cr Lee Vandervis is the only candidate standing who sounded the alarm. He abstained from even voting on the proposal because the information put before Councillors was so pathetically incomplete that to even vote on it was giving the “proposal” more credibility than it deserved.

Departing from Matters Noble for a moment, your correspondent had from afar noticed a very clear divide on ‘the sound’ between sitting and new council candidates. To a man (and one woman) the sitting Councillors all sing the same song : everything is fine, everything is under control at the hands of your capable (sitting) Councillors and if these “whingers” would stop the “negativity” then everything would move from fine to fantastic on the DCC rate-o-meter. With the notable exception of the sniping between Mr Whiley and Mr Hawkins, there is clearly a little gentlemen’s agreement amongst incumbents not to say hard but truthful things about each other so that normal sycophant operation can resume after the election.

However, the other 32 council candidates are also singing a song that is mostly in unison, and that is that the present Council have failed the city in ways too numerous to count. Their description of the overall Council performance ranges from the mediocre to the abysmal.

With six new positions, in a normal election a candidate could probably spout vague but reassuring platitudes and have a good chance of joining the club. But this is not a normal election and the vast majority of new candidates aren’t being shy about what needs to change. A change is coming.

The point of all this : Your correspondent says that this is no time for the safety first status quo and if the best candidates only include one (Cr Vandervis) or even two then that is just fine. Vote accordingly. Mr Vandervis as Mayor can always run night classes over the first month in how to chair a subcommittee.

Your correspondent has for some time flayed the vast majority of Councillors in many posts for being slack jawed bystanders on the whole disgusting Delta Noble mess. Those Councillors who acquiesced and made like Silent Bob – which is all of them, except Cr Vandervis, do not merit re-election on a number of levels. Most odiferous of all is Cr Doug Hall, who is very well versed in subdivisions, and would never in fifty lifetimes commit his own money to a deal like this, but who refused to say anything. Sayonara, Doug Silent Bob Hall !!

However, some information from a little bird….
has come to light regarding the non-public section of the fateful August 1 Council meeting. This, along with other information made public at What if?, now means we have an accurate idea of why this turnip of a Delta deal was fertilised into life. (Sorry Vaughan, bested you again, but keep up the good work !).

It was a case of turnip councillors also being fertilised with you know what, but it was also a case of DCHL and DCC bureaucratic fascism, which is even more alarming.

Apparently, a senior representative at the meeting (can’t name names) lectured the Councillors for about 30 minutes that this Infinity deal was The Way, The Truth and will give Life to the half of the $25M DCC debt that the DCC had not written off. To extend the biblical analogy further, however, it would not be three days before the debt was resurrected, but EIGHT YEARS. (Good work on that in Friday’s ODT, Vaughan !!). This is rather a long time to go without financial oxygen, otherwise known as payment of interest, but at Delta (now enabled by the DCC) the unthinkable (the illegal construction of entire subdivisions, being had up for constructive fraud) is now commonplace.

What if? is led to understand that Councillors were lectured like school children, and questions were Not Tolerated by the Irascible Headmaster. They were to vote on the One True Option, and That Would Be That, and if they did not vote for the One True Option, the buyer of the Noble Subdivision would be lost.

Readers may recall that your correspondent did predict that this is precisely what would happen, a certain corporate person would pronounce that There Is No Alternative, regardless of the truth, and much of the statements by the Irascible Headmaster (not to be confused with The Fat Controller) are not true.

A malodorous other person also enabled this fertilisation, as a parting gift to fellow “managers” – and I use the term loosely.

For major decisions, DCC staff are meant to prepare a range of options so Council can debate which is best. Either they weren’t bothered or came under instruction to prepare one option only by minders at DCHL. The Council should remember it is DCHL’s superior, and (theoretically….) DCC’s senior executives should be monitoring the Council holding company and subsidiaries. Old habits (like saying yes) are troublesome things that become reflex actions.

Humour aside, what happened on August 1 and immediately following is simply anti-democratic and makes Councillors redundant rubber stamps for DCC staff. The amazing thing is that only two of the 15 elected complained about this obvious and basic sidelining of Councillors.

But even at that point Ratepayers could have possibly accepted a lack of proper process had a good option been presented. But the “Delta Deal” isn’t a good option. This is the most commercially one-sided deal seen in decades, and the level of excuses made by Crs Thomson and Cull, Delta CEO Cameron, and most of all Mr Crombie, should give Ratepayers pause. They protesteth too much. The cover has been in full swing. “This is the best we can do”, “there are no guarantees”, “it will take years…. but builders are lining up to buy the sections”.

If The Fat Controller fitted one of his own conservative clients into this deal – a $13.2M second mortgage on a subdivision mired in legal action and half built illegally, at an interest rate of 7 per cent, he would doubtless be censured and taken to task by his professional body.

Something appears to be rotten in the State of Dunedin. Why is there indecent DCHL directorial haste to get this deal done ? Will Infinity Yaldhurst spend vast sums on marketing the sections via the ODT ? Will certain ex DCC operationals retire to Wanaka, coincidentally on an Infinity Subdivision ? Will Mr Crombie and Mr Frost become directors or shareholders of some Infinity venture, or their firms be remunerated in some generous way at Noble ?
Stay tuned, same bat time, same bat channel !…..

There is a way to stop this rot, to stop the sale to Infinity and bring the entire subdivision back under the control of the DCC. Council was not able to vote on the actual terms and conditions of the disgraceful $13.2M second mortgage at the August 1 meeting. This will be done by the new Council after the election. The solution is obvious. Don’t give the money to Infinity and the whole deal will fall over, then the DCC can appoint its own development manager and sell down the sections that are ready now, and start selling the commercial land, which is the real cash cow of the deal. Without a doubt Council would recover all of the $25M debt, and get interest on it as well. This amount would pay a great proportion of the South Dunedin flood control work……

This is too hard for your turnip DCHL directors, and involves a serious loss of face, but who cares about them ? With the right development manager the DCC can do it in house. There is one man in Dunedin who is available at the end of the year and has the necessary integrity and expertise to do it, and his name is Geoff Plunket, soon to be former CEO of Port Otago and Chalmers Property.

[ends]

—

Related Posts and Comments:
22.9.16 DCC : Delta deal 1 Aug 2016 Council meeting (non-public) #LGOIMA
18.9.16 Delta #EpicFail —Epic Fraud #13 : Councillors! How low can you Zhao ?
26.8.16 Delta #EpicFail —EpicFraud #12 : The Buyer Confirmed
24.8.16 Delta peripheral #EpicFail : Stonewood Homes —Boult under investigation
8.8.16 Delta #EpicFail —Epic Fraud #11 : The Buyer
1.8.16 Delta #EpicFail —The End Game according to CD
31.7.16 Delta #EpicFail —Epic Fraud #10 : The Beginning of the End : Grady Cameron and his Steam Shovel

█ For more, enter the terms *delta*, *infinity*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

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

*Images: Lee Vandervis billboard detail by whatifdunedin | The Fat Controller from Thomas the Tank Engine

DCC : Delta deal 1 Aug 2016 Council meeting (non-public) #LGOIMA

Updated post
Tue, 27 Sep 2016 at 7:08 p.m.

On 1 August 2016 I lodged an official information request with DCC to obtain documents and audio file for the non-public meeting of Council held that day to decide Delta’s deal with “Infinity” (later, properly referred to as Infinity Yaldhurst Ltd. NOTE: Not the company called Infinity Investment Group Holdings Ltd. The information request was made subject to an extension. (In particular for more context, see Delta posts at What if? Dunedin from 1 August onwards – to access these use the term *delta* in the search box at right).

—

The information received from DCC is published here.

——– Original Message ——–
Subject: Minutes of Council meeting August 1
Date: Mon, 19 Sep 2016 21:26:24 +0000
From: DCC Governance Support
To: Elizabeth Kerr

Dear Elizabeth,

Further to Kristy’s response below, please find attached a copy of the minutes of the meeting. These are now confirmed as correct.

Regards
DCC Governance Support

Attachment: Minutes Council 010816

——– Original Message ——–
Subject: FW: Please check LGOIMA response on Delta PE documents and audio file
Date: Mon, 19 Sep 2016 20:48:01 +0000
From: Kristy Rusher
To: Elizabeth Kerr

Hi,

In relation to your request for the information about the Council’s decision regarding the Delta & the Noble Subdivision, we now provide you with:

1. The audio recording and transcript of the non-public section of the 1 August council meeting where this transaction was considered. Please click on this link: https://www.dropbox.com/sh/jcvhpn0w2a7v1n7/AADWTnaiJcP3R0YA-dZuuo1Ya?dl=0

2. A copy of reports presented as part of the non-public section of the August 1 council meeting where the Delta transaction was discussed.

3. The minutes of this part of the 1 August Council meeting are not yet included. That is because at yesterday’s meeting of the Council, an amendment was made to this section of the minutes. They will be provided to you in their amended form when the minutes of yesterday’s meeting become available.

The information you have requested is attached. Please note that due to the late conclusion of yesterday’s Council meeting we were unable to provide you with this response yesterday.

Audio Recording of Discussion at Council Meeting

There were some technical difficulties experienced with the recording of the meeting. Unfortunately this resulted in only the first part of the meeting up until the first adjournment being recorded. We have sought expert help to recover the rest of the recording but it is blank.

An independent party has also transcribed the audio file that is available and this transcript is attached. This provides details of each speaker and may help your listening of the file.

If you have any questions please contact me in the first instance.

Regards, Kristy

Attachments:
1. CNL20160801_1967_207_5.pdf
2. Transcript of Meeting 2016_08_01 np.pdf
3. Noble-Yaldhurst Village Update – 2016_08_01 final.pdf

—

GO TO NEW POST
27.9.16 Has DCC Delta stupidly bought into another Pegasus . . . . #notquite

Why has our Dunedin City Council decided to have anything to do with Infinity via council owned company Delta ? Which Infinity ? Infinity Investment Group Holdings Ltd ? Infinity Yaldhurst Ltd ? And who is Infinity Finance and Mortgage Ltd, of a bedroom at 12A Fovant St, Russley ? Is ‘Infinity’ a front for Gordon Stewart’s Noble Investments Ltd ? We delve…. Meanwhile, here’s Infinity’s slow-troubled-road Pegasus. Cont/

█ For more, enter the terms *delta*, *infinity*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

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

Delta #EpicFail —Epic Fraud #13 : Councillors! How low can you Zhao ?

Updated, this post was originally published on 29 Aug 2016.

Received from Christchurch Driver [CD]
Thu, 15 September 2016 at 6:53 p.m.

Readers

Recently some diligent whatiffers (thank-you Mick, Calvin), have provided some very pertinent information that puts your intemperate correspondent well ahead of the chasing pack that is national media.

Delta’s financial “breakthrough” at the Noble Subdivision got an airing on National Radio “news” late last month. Strangely, there was no mention of the buyers’ troubled history that checkmated $101M into the big depository in the sky. Fortunately, online media Stuff (26.8.16) has better quality reporting than our erstwhile public servants (well chaps, it was the weekend after all) and had this epic fail firmly in their sights. Vaughan Elder at the ODT (27.8.16) also stepped up to the plate, hammering home the $101M Infinity fail. “Efforts to contact Infinity Yaldhurst were unsuccessful,” said Vaughan [before ODT updated the article]. No prizes for why…..Go Vaughan you good thing !

Tonight, readers, over a cup of Bell or two (put that Twining’s rubbish away – we’re not in Fendalton now !)….. we shall look at a likely funder at Noble (at third mortgage level, no less), and in doing so we shall arrive at the quiet suburban destination of 12a Fovant St, Russley; the poor man’s Fendalton, if you will. Once again, truth trumps fiction, and from this secure and modest address it is quite probable the highly insecure and very immodestly sized Noble Subdivision will receive finance.

Firstly, readers, it is important to understand what your complete turnips of Councillors could not, and that is : it is the holder of the first mortgage that basically drives the train in any development. When things go bad – often – the developer gets told to go sit in the corner and play with some knives while the first mortgage owners decide what is best for them, and them alone, and the size of the haircut for everyone else. Delta have just found this out the expensive way to their approximate overall loss of $25M. Delta now wholeheartedly agree with this theory because they happily spent $3.39M of ratepayer funds to buy 67.5% of a $1.75M first mortgage, which was an illegal transaction at that. Mr Crombie and Mr Cameron say that interest doesn’t count ….Turnips that need to be culled, you say : I hear you!

But the problem with first mortgage holders is that they are very often banks that don’t have a large appetite for risk, and they hate “mezzanine financing” with all the conservative passion they can muster. Mezzanine funding is what they call funding projects during their construction. If things go wrong of course at the construction stage (consider Noble), there is only a half-finished at best project…. worth precisely nothing, which tends to play havoc with the banks’ precious LTV (loan-to-value) guidelines.

Readers will remember this was precisely the scenario at Noble where the mortgagee sale was marketed on the basis that it was bare land, ie the $11.5M of half-finished work by Delta was deemed to be worth nothing. So while Delta trumpet that there is a bank as a first mortgagee involved, your correspondent surmises that given the project’s radioactive history, it is a very small first mortgage, that is nowhere near big enough to finance the completion of even the first stage of the subdivision.

This leads us to some very interesting territory. How to fund the construction ? A smallish bank first mortgage, Delta as second mortgagee. Even Grady Cameron and possibly even Mr McLauchlan comprehend that they would be sacked if they advanced more public funds to Noble on a second mortgage basis. Could the purchaser, Infinity Yaldhurst Ltd fund it ? We do not know this, because of the commercial stupidity of most of your Councillors : we understand it was explained to them in words of almost one syllable at the Council meeting on 1 August that it was a VERY BAD THING to lend $13M-odd as a second mortgage, NOT KNOWING THE SPECIFICS OF THE OVERALL PROJECT FUNDING or the details of the “purchaser”, the shell company Infinity Yaldhurst, set up specifically for one project that has no assets and NO BACKING OR GUARANTEE from any other Infinity Group Company that managing director Paul Croft is involved in.

(Perhaps our walking photo opportunity that is the Mayor could advise us what sort of COLLATERAL SECURITY has been offered by Infinity Yaldhurst).

What is an impecunious property developer to do ? Readers, allow me to introduce to you…. Infinity Finance and Mortgage Ltd. This interestingly named company was incorporated on 17 March 2016. Your correspondent thinks that it provides a clue as to how the Noble Subdivision may be financed. Its sole director and shareholder is a fellow named Xiangqing ZHAO aka Xiang Qing ZHAO. The registered office of this apparent titan of finance is at 12a Fovant St, Russley, Christchurch. This is just a little more than a stone’s throw from the Noble Subdivision.

[click to enlarge]

A quick peep at Google Street View shows that Fovant St is a street of well tended and modest homes. There is not a single commercial premises evident. Now 12a (with a little pool in the backyard) is not actually visible from the street, being blocked by a quite nicely proportioned brick and tile bungalow from early 1970s, approximate value $590,000.

12a Fovant Street, Russley [Google Earth]

Mr Zhao’s previous commercial activities are also, ahem, somewhat idiosyncratic. Mr Zhao’s visible means of support includes his being the Shareholder of a pizza company, “X Pizza Ltd” and a company called “A-Team Company”.

So there is a suspicion that Dunedin City Councillors voted, at their meeting on 1 August, to lend $13M to a shell company, Infinity Yaldhurst, that may be receiving some form of finance from a company effectively controlled by an Asian, with a predilection for pizza, operating property investment companies and a finance company out of his bedroom – safely out of sight, down a driveway on a back section in Russley. It would be impossible to make this up. Gold Band at least had premises and statutory reporting requirements that it fulfilled. With Mr Zhao there is the very strong suspicion there will be a wall of opacity when things turn bad, and 12a will be sublet to Irish construction workers who have never heard of Mr Zhao and don’t know who receives their rent.

It is very significant our mendacious minders at Delta did not make any reference to precisely how the project would be funded on their breathless press release (26.8.16). Readers and ratepayers should be prepared for the fantastic fact that the Noble Subdivision is so troubled and radioactive it requires a THIRD mortgage (ie after the Bank, and after Delta) from an Asian “bedroom funder” several steps below a Microfinance company. Good grief, what next – crowd funding ?

One cannot escape the thought that perhaps the money that may be advanced does not belong to Mr Zhao, but he has some access to funds from Asia. We do know that a tsunami of cash from China in the last 12-18 months has washed through Australia, in particular the Gold Coast, and that cash has purchased an amazing amount of property there. It would be entirely unsurprising if Asian interests looked at this as a no-lose situation to park some funds. Plan A : Lend money to Infinity Yaldhurst at 25% plus (remember Delta were or are getting 22.5%). Plan B : If the project tips up yet again, buy out the first and second mortgage holders for about $16-20M, and create Christchurch’s first gated community dedicated to Asian peoples. Many of the sections are only 125 sq m, which would suit Asian immigrants, more than local residents.

The question readers, is how low – how low can our turnip Councillors Zhao ?

[ends]

● INFINITY YALDHURST LIMITED (5886102)
Incorporation Date: 09 Feb 2016
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/5886102

● INFINITY INVESTMENT GROUP HOLDINGS LIMITED (1004601)
Incorporation Date: 06 Dec 1999
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/1004601

● INFINITY FINANCE AND MORTGAGE LIMITED (5920307)
Incorporation Date: 17 Mar 2016
Address for service:
Infinity Finance and Mortgage Limited, 12a Fovant Street, Russley, Christchurch 8042
http://www.companies.govt.nz/co/5920307

—

Related Posts and Comments:
26.8.16 Delta #EpicFail —EpicFraud #12 : The Buyer Confirmed
24.8.16 Delta peripheral #EpicFail : Stonewood Homes —Boult under investigation
8.8.16 Delta #EpicFail —Epic Fraud #11 : The Buyer
1.8.16 Delta #EpicFail —The End Game according to CD
31.7.16 Delta #EpicFail —Epic Fraud #10 : The Beginning of the End : Grady Cameron and his Steam Shovel

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

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

*Images: 123rf.com – Fatty Cull using Hula Hoop, tweaked by whatifdunedin | Noble Subdivision close proximity to 12a Fovant St [Mick Field overlay]

Delta Yaldhurst : Local Opinion + Update from Caveators via NBR

ODT 1.9.16

*Name correction: Graham Crombie.

Mr Crombie is the chairman of Dunedin City Holdings Ltd (DCHL). Grady Cameron is Delta’s chief executive. -Eds

****

Sally Lindsay writes on the Delta fiasco at NBR today: ‘Christchurch development still entangled in litigation despite sale’ (pages 3 & 7).

“The sale is not deterring neighbours Colin Stokes and Gregory Smith from court action and Mr Stokes says Delta and Gold Band Finance have been joined to the proceedings originally launched against developer Noble Investments over a breach of contract. […] The litigants are claiming the value of 13 sections on their land had it been able to be subdivided. Mr Stokes says the sections would be conservatively valued at $200,000 each and the [action] also includes a claim for damages because of the holdups to their project, which they expected to launch in 2008. […] Mr Stokes is expecting the court case to be heard within the next year.”

—

Posted by Elizabeth Kerr

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

Delta #EpicFail —EpicFraud #12 : The Buyer Confirmed

Received from Christchurch Driver [CD]
Fri, 26 Aug 2016 at 9:47 p.m.

Readers, you must allow your correspondent some iced cupcakes with his Choysa tonight, go on then, the ones with the cherry on top….your correspondent, with a modicum of luck was in fact 100% successful in the dire prediction that Infinity, of Wanaka, are indeed the purchasers of the Noble Subdivision. Our friends at Delta have issued a breathless press release explaining they are or have received $0.9m – yes $0.9M, from their friends at Infinity. The sky is blue, houses will be built, Delta’s financial fruit will follow. Fancy that !! Let us allow reality to intrude : This is the first, and only guaranteed payment that Delta will receive for the outstanding $25M+ debt they have incurred there. That’s not low hanging fruit, it’s been trampled underfoot and is not even worth stewing (over). Trampled underfoot also is the small matter of the outstanding interest. Would it be churlish to remind readers that Delta, of course, has written off about $12M in interest because it wanted to protect certain reputations more than it wanted to protect ratepayers ? Would it spoil Delta’s collective fist pump to remind them that $0.9M is no more than (and likely less than) 4% of the outstanding debt ? Yes I thought so. Delta as debt collectors ? = EpicFail.

Missing in Delta’s gushing remarks from Grady Cameron was any mention of the Constructive Fraud action. It seems that the hapless Mr Smillie has taken Delta down a dark cul-de-sac yet again this week. Mr Smillie has opposed Delta being joined to the constructive fraud action, with a mistaken understanding of High Court rule 4.56. However, that rule is not relevant and it is trumped by High Court Rules 4.1 and 4.3 which allow parties to be joined. Basically, the rules allow that a plaintiff can joinder anyone at any time, and the plaintiff caveator in this action is 100% unlikely to allow the central party to the constructive fraud action (yes, that is you Grady as CEO of Delta) to smile bashfully and say “can I go now?” after having undermined the interests of the neighbours on occasions too numerous to count at this point. Oh well Mr Smillie, another unpaid legal bill….

This is an important point because our Delta friends seem oblivious to the impending legal actions they are facing. Delta think that because the caveats were lifted, all is well, but that is still subject to a court of appeal hearing, and the way is open now for Delta to have another action brought against them by the neighbours. Delta and the DCC’s pockets are deeper than Gold Band’s, and they can’t go broke, so from the neighbours’ view, what’s not to like ?

Delta’s utter stupidity is revealed when the press release acknowledges that they have allowed a bank lender to take the first mortgage over the property, and have put themselves, yet again in the same weak position. As noted in the Delta —EpicFraud #10 post, Dunedin City Council just needed to show a scrap of acumen and take control of the subdivision. Now their fortunes are tied to an even weaker developer than Noble (how is that possible ?), who has managed to lose, much, much more money than Noble (truth stranger than fiction), and to cap it off, are in the same second mortgage position. This is not logical. But it is a windfall – for Infinity. Could there be a quid pro quo somewhere ?

Turnips all round. Readers, consider when voting, that Cr Lee Vandervis is the only surviving councillor (there were only ever two, Hilary RIP from Council) who grasps this major issue and has fought for the ratepayers. Cr Vandervis has never been one to accept Mr Crombie’s vague platitudes and was always wary of Mr McKenzie. Vandervis for Mayor.

[ends]

—

From: Gary Johnson [Gary.Johnson @thinkdelta.co.nz]
Sent: Fri, 26 Aug 2016 at 4:21 p.m.

Message: Please find media release attached regarding a breakthrough on recovery of outstanding debt owed to Delta in relation to the Yaldhurst Village subdivision.

█ 160826 Media Statement_Breakthrough on Yaldhurst subdivision debt recovery

—

“With a new developer, new financing and removal of the caveats, the way is now clear for the Yaldhurst Village subdivision to restart….” Mr Grady (sic) said. –emphasis by whatifdunedin

### ODT Online Fri, 26 Aug 2016
Delta sells Christchurch subdivision
By Vaughan Elder
Delta has hailed the sale of a controversial Christchurch subdivision as a breakthrough in its efforts to recover $13.4 million in bad debt. The Dunedin City Council owned infrastructure company yesterday announced Wanaka-based developers Infinity Group purchased the Yaldhurst Village subdivision. […] The purchase means Delta has entered a new loan agreement with Infinity Yaldhurst Limited, to replace the existing $13.4 million debt owed to Delta by the original developer.
Read more [See tomorrow’s ODT]

—

● INFINITY YALDHURST LIMITED (5886102)
Incorporation Date: 09 Feb 2016
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/5886102

Ultimate holding company :
● INFINITY INVESTMENT GROUP HOLDINGS LIMITED (1004601)
Incorporation Date: 06 Dec 1999
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/1004601

—

Related Posts and Comments:
8.8.16 Delta #EpicFail —Epic Fraud #11 : The Buyer
1.8.16 Delta #EpicFail —The End Game according to CD
31.7.16 Delta #EpicFail —Epic Fraud #10 : The Beginning of the End : Grady Cameron and his Steam Shovel

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

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

Delta peripheral #EpicFail : Stonewood Homes —Boult under investigation

Stonewood Homes New Zealand Ltd was placed in receivership on February 22, 2016, owing unsecured creditors $15M.

### ODT Online Tue, 23 Aug 2016
Investigation of mayoral candidate
By Mark Price
Queenstown mayoral candidate Jim Boult is to be investigated in relation to the collapse of Stonewood Homes New Zealand Ltd, something Mr Boult says he welcomes. Ernst and Young liquidator Rhys Cain said yesterday an investigation into the failed company would begin “in the next few days”. It would examine the workings of the company during the two years before its collapse, with a “specific focus” on its final six months. […] Mr Boult was a member of the board of the Christchurch building company for about a year and acted as executive chairman for a period. He stood down from the board on February 1, 2016, telling Mountain Scene later he had done so because he had been part of an attempt to buy Stonewood before receivers were called in and he considered he had a conflict of interest. […] Asked if he could rule out action against Mr Boult, Mr Cain said: “No”.
Read more

—

Related Post and Comments:
11.3.16 Delta peripheral #EpicFail : Stonewood Homes and ancient Delta history

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

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

*Image: stuff.co.nz – Jim Boult by Stacy Squires

Mayor Cull IS NOT YOUR MAN #elections #steamingheaps : DCC, Delta, Aurora, DCHL, DCTL

ODT 19.8.16 (page 10)
– purple text overlay by whatifdunedin

—

### ODT Online Fri, 12 Aug 2016
‘Dangerous mess’ addressed, remedied after 2011 review
By Dave Cull
OPINION Claims that council-owned companies are out of control and lack transparency (ODT, 5.8.16 and the editorial 6.8.16) are sadly ill-informed, lack business understanding and worse, threaten the ratepayers’ asset value. […] Ratepayer-owned companies are more expertly governed and more comprehensively examined and reported on than ever before.
Read more

E X P E R T L Y ● G O V E R N E D

M O R E ● C O M P R E H E N S I V E L Y ● E X A M I N E D

E N T I R E L Y ● L A U G H A B L E

—

Related Post and Comments:
● 12.8.16 DCC trifecta : openness, transparency, accountability —All dead?

R E P E A T ● R E P E A T

█ Delta Utility Services Ltd (“Delta”) has been joined in a constructive fraud action brought by original Landowners/Caveators of the Noble Subdivision application at Yaldhurst, Christchurch.

Very substantial multimillion-dollar losses caused to Dunedin Ratepayers (on Mayor Cull’s shift) stem from Delta’s decision in 2009 to involve themselves in the illegal and unconsented subdivision. This all follows multimillion-dollar losses (about $14M) suffered by Ratepayers as a consequence of Delta’s involvement in the Luggate and Jacks Point subdivisions.

On Monday 1 August, we had absolute Confirmation that the city council is Not transparent —the Council blindly followed (without proper or worthy documentation; no diligence done by Councillors; no thoroughly independent legal advice to Council) the manipulations of Mr Crombie, DCHL chairman, assisted by the head of DCC Finance Committee, Cr Thomson, threading a ‘long’ story to seal a bad ‘Delta’ deal.

ODT reported (3.8.16): ‘Deal designed to help Delta’s bad debt woes’. This deal, “to help Delta recover a $13.4million bad debt from a stalled Christchurch subdivision”, unfortunately, fails to give DCC control over the whole Noble subdivision, which DCC could have secured for relatively little financial outlay (as Advised by What if? Dunedin in emails to all Councillors; and of course by the Caveators), resulting in generous profits in a longer time frame.

So the Old Boys have conspired once more to use Rates funds to line the pockets of those they would work with and protect, this time at Yaldhurst —Not named by DCHL/Delta : The Buyer of the subdivision. [which may include Delta types]

The ODT editorial (6.8.16) rightly states: “Delta has a history of secrecy and limited transparency, stretching back many years to the time it was a council department.”

As our correspondent Christchurch Driver says in a recent post (8.8.16): “Delta, for the third time, [has] created a stinking financial mess … Ratepayers now know that [Dave Cull] is unfit to be Mayor and has not a shred of any concern for the interests of Ratepayers but is simply part of the Dunedin establishment who protect each other.”

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

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

*Image: Dave Cull tweaked by whatifdunedin

DCC trifecta : openness, transparency, accountability —All dead?

—

Three words : O U T ● O F ● T I M E

### ODT Online Friday, 12 August 2016
DCC affirms transparency commitment
By Chris Morris
The Dunedin City Council says it remains committed to transparency, despite a nearly year-long delay responding to an official information request. […] The comment came after council staff last week again delayed their response to an Otago Daily Times request for information relating to the former Carisbrook site. The ODT’s request dated back to September last year, and the council — like other local authorities — is required by law to respond as soon as possible within 20 working days. […] Last week, six weeks after the ODT again requested an update, council staff initially said no further action had been taken, and would not be taken now until after October’s elections.
Read more

—

One word : T I M E L Y

### ODT Online Fri, 12 Aug 2016
Departure reshuffle
The departure of the Dunedin City Council’s group chief financial officer, Grant McKenzie, has triggered a minor reshuffle within the organisation. […] Council financial controller Gavin Logie has … been named acting chief financial officer until Mr McKenzie’s replacement is named.
Read more

—

Three words : D E L T A ● A U R O R A ● D C H L

### ODT Online Fri, 12 Aug 2016
‘Dangerous mess’ addressed, remedied after 2011 review
By Dave Cull
OPINION Claims that council-owned companies are out of control and lack transparency (ODT, 5.8.16 and the editorial 6.8.16) are sadly ill-informed, lack business understanding and worse, threaten the ratepayers’ asset value. […] Ratepayer-owned companies are more expertly governed and more comprehensively examined and reported on than ever before.
Read more

*Delta Utility Services Ltd (“Delta”) has been joined in a constructive fraud action brought by original Landowners/Caveators of the Noble Subdivision application at Yaldhurst, Christchurch. Very substantial multimillion-dollar losses caused to Dunedin Ratepayers (on Mayor Cull’s shift) stem from Delta’s decision in 2009 to involve themselves in the illegal and unconsented subdivision. This all follows multimillion-dollar losses (about $14M) suffered by Ratepayers as a consequence of Delta’s involvement in the Luggate and Jacks Point subdivisions.

We know what ‘out of control’ means.

On Monday 1 August, we had absolute Confirmation that the city council is Not transparent —the Council blindly followed (without proper or worthy documentation; no diligence done by Councillors; no thoroughly independent legal advice to Council) the manipulations of Mr Crombie, DCHL chairman, assisted by the head of DCC Finance Committee, Cr Thomson, threading a ‘long’ story to seal a bad ‘Delta’ deal.

Bad for the Ratepayers.

ODT reported (3.8.16): ‘Deal designed to help Delta’s bad debt woes’. This deal, “to help Delta recover a $13.4million bad debt from a stalled Christchurch subdivision”, unfortunately, fails to give DCC control over the whole Noble subdivision, which DCC could have secured for relatively little financial outlay (as Advised by What if? Dunedin in emails to all Councillors; and by the Caveators), resulting in generous profits in a longer time frame.

So the Old Boys have conspired once more to use Rates funds to line the pockets of those they would work with and protect, this time at Yaldhurst —Not named by DCHL/Delta : The Buyer of the subdivision. [which may include Delta types]

As the ODT editorial (6.8.16) rightly states: “Delta has a history of secrecy and limited transparency, stretching back many years to the time it was a council department.”

We’re sure the Mayor and Cr Thomson are well up on that particular reading, in the privacy of their gentlemen’s armchairs.

As our correspondent Christchurch Driver says in a recent post (8.8.16): “Delta, for the third time, [has] created a stinking financial mess … Ratepayers now know that [Dave Cull] is unfit to be Mayor and has not a shred of any concern for the interests of Ratepayers but is simply part of the Dunedin establishment who protect each other.”

Nothing changes at DCC, DCHL or Delta (except overt culpability!) —shortly, What if? Dunedin will deal to Aurora Energy, which has the same Chief Executive and Board of Directors as Delta.

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

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

*Image: Dave Cull tweaked by whatifdunedin

Delta #EpicFail —Epic Fraud #11 : The Buyer

Received from Christchurch Driver [CD]
Sun, 7 Aug 2016 at 11:08 p.m.

Your correspondent was heartened to read Saturday’s ODT editorial. It was mostly on the money, apart from the fabrication that Delta pays a dividend most years, when it is well known that for many years it borrowed to provide dividends, and it will not pay a dividend for the next three years.

[screenshot]

In its diplomatic way, the editorial conveyed the (accurate) impression that

A)
Mayor Cull is a either a devious and unfaithful turnip or he is a blundering nincompoop. Given his disgusting complicity with DCHL Chair Crombie, last week, making simply absurd and risible statements as to why Delta CEO Cameron did not need to appear at the Council meeting and explain to Council how Delta, for the third time, had created a stinking financial mess, and done so under his approval to proceed at Noble in 2009, to build an illegal and unconsented subdivision. All Mayor Cull had to do to show some integrity and leadership was to insist to Delta and DCHL that Mr Cameron appear as per Councillors Vandervis and Calvert’s request. Ratepayers now know that he is unfit to be Mayor and has not a shred of any concern for the interests of Ratepayers but is simply part of the Dunedin establishment who protect each other. It is clear a great many Ratepayers have already come to this conclusion : As part of his mayoral campaign, Mayor Cull’s Facebook page invited feedback in recent weeks and it was so overwhelmed by negative and derisive comments – that he could not refute – that he simply stopped attempting to respond after two attempts. Readers should find the site – it may well have been taken down after the avalanche of negative feedback – and make THEIR views of Mr Cull known.

B)
Named and shamed the four Delta Directors, Frow, McLauchlan, Kempton and Parton, and that they contributed to the history of “secrecy and limited transparency” of Delta, a culture that “continues to envelope a company which is effectively owned by ratepayers”. ODT readers did not have to join too many dots to see that the ODT is saying that these directors are not fit to be directors of a Ratepayer owned company and need to be sacked. This is very strong (and welcomed) from the ODT.
We should consider the curious case of Mr McLauchlan, who has had his nose in the Delta trough since 2007 : It was around that time that Mr McLauchlan gave accounting evidence to the High Court for Scenic Circle in a dispute, reported in the ODT, with the co-owner over the then –new Scenic Circle Dunedin City Hotel. Mr McLauchlan, as seems to be the pattern with Delta, tried to tell the Court that black was white, that effectively, debits were credits and vice versa. Unfortunately for Mr McLauchlan, the opposing side had a much more credible accounting witness, whose evidence was the complete opposite of Mr McLauchlan’s. Needless to say the Court much preferred the evidence of the opposing side, so it is a statement of fact that the Courts have found Mr McLauchlan to be an unreliable witness. One wonders if Delta knew this when they appointed him, or if it was part of the job description….

And then there was the other curious case of Mr McLauchlan’s short tenure as the “Crown Monitor” for the SDHB, where an outgoing board member publicly questioned if he had any utility at all, and what did he actually do for the approximate $30,000 a year he received for acting as the Crown Monitor. Mr McLauchlan then confirmed to the ODT he hadn’t actually done anything as Crown Monitor except attend the board meetings and make some phone calls to Wellington. He had not written any reports – at all.

C)
The ODT did not dwell on CEO Grady Cameron. Your correspondent was wrong in his last post – Mr Cameron was not left to sweat it out in front of Council, but probably had so much dirt on the Directors and DCHL that they could not risk him appearing, and they conspired to put Mr Crombie in front of Council.

However, the true dirt tonight is the identity of ‘The Buyer'(?) of the Noble Subdivision : (ODT – feel free to pick this up and make any inquiry you want). It is of course truly unbelievable that Council would approve a loan of $13.4M to a buyer that they do not know, which shows that a wholesale cleanout of Councillors is necessary. More on that later. However, Councillors are not going to want to know the identity of the Buyer because they make the dismal NIL (Noble Investments Ltd), Tom Kain, Gordon Stewart, et al look like paragons of commercial acumen.

Your correspondent’s information is that the Buyer may be or very well includes Infinity (of Wanaka). A caveat, readers : We seek through the glass, darkly, and are not privy to the full machinations of Mr Crombie and his cronies. It will not be certain until this is confirmed publicly, but we do know that Delta, via Mr Murray Frost, have been working on this “arrangement” for months. Perhaps the ODT might like to make inquiries of Mr Paul Croft, General Manager and CFO of Infinity Investment Group Holdings….
Now at one level Infinity and Delta are birds of a very, very similar feather, and it is clear why they would seek to stick together : Like Delta, this will be Infinity’s third attempt at a Canterbury subdivision. Like Delta, the other two have been failures. Readers, hold those cups of Tiger Tea tight…. Infinity’s abysmal financial performance on those projects makes Delta look like seasoned and competent professionals !!!

The amazing truth that is stranger than fiction : Infinity have lost MUCH MUCH MORE than Delta on their two failed Canterbury projects…… IN EXCESS OF $100M. I can hear the teacups rattling now, readers, “Prove it CD, prove it !!” Elementary, my dear readers : Here is the link to the Stuff.co.nz story that appeared last year. It takes a special effort to lose $100M on one deal, but Infinity pulled it off. Perhaps Delta’s Mr Cameron and CFO Dixon, having had their subdivision trainer wheels on since 2009, are ready to move up to the big leagues at Infinity and lose serious amounts of someone else’s money.

It beggars belief that Mr Frost, who has been acting for Delta (but mostly Noble, it appears), would actively court Infinity as the Buyer, and place at risk $13.4M of Dunedin Ratepayers’ money with a company with this recent history; when there was a far safer option of Dunedin City Council taking control of the project, perhaps in concert with a developer that HAD NOT lost $100M on the same sort of project. Let us not forget either, the other $12M that Mr Crombie has “given up on” reported by the ODT last week, as though it were a trifle as light as air. If it were your money, Mr Crombie, I don’t think you would be quite so cavalier.
Readers should remember that essentially the deal is that the Buyer (Infinity ?) will pay around $2.7M to Gold Band Finance, and $1M to Delta (probably for consultant and court costs !) and NO OTHER MONEY CHANGES HANDS. If that is the best that Delta / Gold Band could do I will eat my tea cosy.
Bottom line : This deal smacks of cronyism.

And here is the interesting part : Murray Frost, Graham Crombie and Stuart McLauchlan are all well known to each other. We hope that there will be assurances that there will be NO INVOLVEMENT or REMUNERATION either directly or indirectly to these three, or any other Delta or DCHL personnel, on the Noble Subdivision.

Mr Crombie – as someone allegedly with an IQ greater than room temperature – how could you think this deal passes the smell test for a Ratepayer owned company ? What if? understands you conspired to conceal key information about this deal from Councillors. As the ODT infers, you are a pathetic guardian for the Ratepayers’ interests and you need to conduct that cost/benefit analysis we advised you to do months ago, and prepare the resignation letter – before a new mayor orders a “review” of the DCHL structure, which as we all know is code for : “Get rid of those incompetents, ASAP”.

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

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

*Image: Screenshot of ODT Online (detail) tweaked by whatifdunedin

LGOIMA requests to DCC from Colin Stokes #Delta #Noble #Yaldhurst

Received from Colin Stokes
Wed, 3 Aug 2016 at 12:30 p.m.

These emails are being circulated to national broadcast and print media today.

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Colin Stokes, caveator and plaintiff, is one of the original landowners of the Noble Subdivision application (Yaldhurst, Christchurch).

In short, Delta, with its controlling interest at Noble, has joined with other parties, in the ongoing repeated attempt to defeat the known prior interests of Mr Stokes, Greg Smith, and others.

Those parties with Delta appear to have connived to form a new consortium to purchase and control the development, with ongoing cheap money from Dunedin Ratepayers to prop up their own private fortunes.

Life has never been so good for Mr Crombie, does he work for the likes of Justin Prain, Gordon Stewart, Murray Valentine, Murray Frost, Paul Croft
—Or us, poor little us who bleed.
Rhetorical.

Noble is like Sticky Pudding for fatsos.

Here are some straight shooting questions in public domain —for Transparency, that old so OLD concept not known to DCHL / Delta and the Noble / Gold Band bandits.

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[Updated LGOIMA request]

From: Colin Stokes
Sent: Wednesday, 3 August 2016 12:27 p.m.
To: Sue Bidrose [DCC]
Subject: RE: LGOIMA: Noble Yaldhurst Subdivision Christchurch Delta DCC

Dear Dr Bidrose

Could I please amend my LGOIMA question number 4 below?

It was both Noble and Gold Band that enticed Delta to provide infrastructure and services at Delta’s cost on the promises of “agreements to have first-ranking first mortgages registered over the land.

Noble owned the land (it having been transferred to Noble by the neighbours for promises alone), and Gold Band held the thinly spread first mortgage over all 9 titles.
The enticement (recorded in their security sharing agreements):-
a. Noble agreed to give Delta “first-ranking first mortgages over the land” if Delta did the works at Dunedin ratepayers expense;
b. Gold Band agreed to swap priority of its first mortgage in favour of Delta over certain Lots if Delta did the works at Dunedin ratepayers expense;

c. Noble then reneged on providing the interests protected by the caveats that prevent Delta’s agreements to mortgage from being registered.
d. Gold Band (and Noble) (and with Deltas insistence apparently) then, under the guise of Gold Bands power of first mortgagee (despite its only 32.5% ownership of it), ran a mortgagee sale tender that lapsed Delta’s caveats protecting their agreements to mortgage used to entice the works.
✔ Subordinate caveats, behind Deltas caveats, that protect the interests of [parties] associated with Nobles did not lapse in the tender documents; such as Southpac which is controlled by Nobles sole director Gordon Ralph Stewart.

So question 4 should correctly read:-

4 updated.
the total sum of “agreements to mortgage” given by Noble Investments Ltd (NIL) and Gold Band Finance Ltd to Delta to entice Delta to do work for them at Dunedin ratepayers costs?

Thanks and regards
Colin

[original LGOIMA request]

From: Colin Stokes [mailto:stokesy@xtra.co.nz]
Sent: Tuesday, 2 August 2016 11:07 p.m.
To: ‘Sue Bidrose’
Subject: LGOIMA: Noble Yaldhurst Subdivision Christchurch Delta DCC

Chief Executive Officer
Dr Sue Bidrose
Dunedin City Council (DCC)

LGOIMA: Noble Yaldhurst Subdivision Christchurch Delta DCC

I am one of dozens of resident owners in the above subdivision. We have prior interests from 2002 in the land that Delta has mortgages and shared mortgages and agreements to mortgages on.

I am also one of the residents that lodged caveats to protect these interests. I gave my caveators’ consent required of Delta to register its mortgage on the land. The consent was given on the clear condition and acceptance that the work Delta was securing with the mortgage included for the interests that the mortgagor/developer Noble owed us. Noble and Delta both agreed.

However we later discovered Noble and Delta had already designed a plan before they approached us whereby Delta was given the power (illegally under the Property Law Act) to instruct the first mortgagee Gold Band to do as Delta instructed in relation to defeating our caveats.

Noble and Delta then jointly constructed the works not including our provisions as agreed and making them impossible.

Delta later bought a 67.5% share of Gold Bands first mortgage (this too is illegal under the Property Law Act s84 – partial assignments are not permitted)

Delta then used Gold Band as planned to use their first mortgage position in Court to defeat our caveats to recover Delta’s subordinate debts.

We tried to redeem Gold Band and Delta’s shared first mortgage in 2014 but they refused us (we later found out that this was illegal under the Property Law Act as well – s102). We tried again recently but they illegally demanded double what it is worth and wouldn’t answer our request for information that we require to legitimately redeem it.

I understand they now propose to sell the land by way of mortgagee sale to defeat our caveat protection, despite that it’s illegal to do so given our prior interests and two refused requests to redeem the first mortgage.

I also understand from media statements and statements made in public Council meeting, that Delta are seeking to write off millions of dollars of debt in the subdivision ($25m debt due in Feb 2016) and are now only “chasing $13.3m”.

I have information that Noble gave Delta a mortgage (with our caveators’ consent), and agreements to mortgage subject only upon our caveats being defeated or removed, to a total of at least $22.7m. This seems peculiar that if Delta can have $22.7m in security that it would write off above $13.3m of what the law would require MUST go to ratepayers.

I am aware that DCC 100% own Dunedin City Holdings Ltd (DCHL) and that DCHL 100% own Delta Utility Services Ltd; so under the Local Government Official Information and Meetings Act (LGOIMA), in relation to the Noble Yaldhurst Subdivision Christchurch, please provide:-

1. the valuation’s for the mortgaged property that DCC is relying on in its proposal that Delta must lose multiple millions of dollars in debt due to Dunedin ratepayers (despite having “securities in the land that covers the debt” according to Delta media releases)?

2. the total debt due to Delta from the subdivision (actual debt including what Delta consider to be doubtful it can recover)?

3. the total debt secured on the land in mortgage? a/ share of first mortgage? and b/ second mortgage amount including interest?

4. the total sum of “agreements to mortgage” given by Noble Investments Ltd (NIL) to Delta to entice Delta to do work for them?
{See email above for new wording to 4. -Eds}

5. the tender documents and agreements that are, or have been, before DCC for their consideration including how those amounts are proposed to be distributed?

6. DCC’s responses to the people with caveated prior interests in the land who have presented and sought to present and discuss alternative proposals with the Council, including that of redemption and transfer?

7. correspondence and/or actions taken to contact and liaise with existing resident stakeholders with known prior interests in the land and in the development?

Kind regards
Colin Stokes
021 2200622

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

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

Lee Vandervis on Delta + DCHL media release

What if? Dunedin notes:
Dunedin City Councillors have now lost control of DCHL, Delta, and all the other subsidiary companies. Now, your Dunedin City Council is manipulated and run to ground by DCHL chairman Graham Crombie.

Cr Richard Thomson and DCHL’s Graham Crombie should Resign immediately.

Read on.

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Received from Cr Lee Vandervis
Tue, 2 Aug 2016 at 6:48 p.m.

From: Lee Vandervis
Date: Tue, 02 Aug 2016 18:01:53 +1200
To: Chris Morris [ODT]
Conversation: Yaldhurst
Subject: Re: Yaldhurst

The Mayor and DCHL have stood by and done nothing as DELTA did massive Noble subdivision work costing over $13 million through 2010 to 2013 without getting so much as a progress payment.
DELTA have already written off more than $11 million owed in interest payments and invested a further $3+ million in buying mortgage shares in the ill-fated subdivision in 2013, but this was disguised and Councillors [word deleted] by Chair Crombie and by Mayor Cull despite my specific questioning about the supposed ‘just a bad debt’.
The now $24+ million loss for which DELTA has only a 67% first mortgage as a lever, to get some millions owed paid, has resulted in a 6-years-too-late knee-jerk from DCHL and Mayor Cull to rid itself of the whole mess, the disgusting details of which I am not permitted to divulge because the deed was done in a public-excluded meeting, without being allowed to question the responsible DELTA CEO Cameron or to see the requested valuations and contracts.
Like the Jacks Point/Luggate DELTA subdivision $7-$9 million losses, the same DELTA, some of the same directors, same Project Management company and same DCHL ‘oversight’ have done over Dunedin ratepayers again, this time for even more millions than what resulted when they failed at Jacks Point/Luggate.

[ends]

****

[What if? Dunedin : We said DCC could make Real money – now What if? hears that Mr Crombie told reporter Chris Morris that ‘no money is changing hands’. Very few people including most Councillors have any idea of what is truly happening, except that three accountants are writing or was that ‘deciding'(?) the deal, and then this rubbish release from Mr Crombie. OMG]

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Dunedin City Council – Media Release
Update on Yaldhurst subdivision debt recovery

This item was published on 02 Aug 2016

Dunedin City Holdings Limited (DCHL) and its company Delta Utility Services Limited (Delta) can now start to make progress towards recovering money associated with a Canterbury development.

The Dunedin City Council yesterday supported a recommendation from DCHL relating to the Yaldhurst Village subdivision. Delta has an outstanding debt of more than $13 million for infrastructure work it carried out for the development over four years.

DCHL Chairman Graham Crombie says the decision means Delta is authorised to enter a new loan agreement with a potential purchaser of the Yaldhurst subdivision, to replace the existing $13.4 million debt owed to Delta by Noble Investments Limited. Mr Crombie says, “We can now start to make some progress towards recovering this outstanding debt.”

The decision authorises Delta to refinance its outstanding debt with the potential new purchaser, on settlement of the purchaser’s offer to Gold Band Finance Ltd, the first mortgagee.

Gold Band Finance put the Yaldhurst subdivision to tender late last year in a mortgagee sale process. The mortgagee sale is still subject to conditions. When the mortgagee sale process is concluded, Delta will provide a further update on the outcome.

During 2009-2013, Delta provided infrastructure services for the Yaldhurst subdivision through its now closed civil construction business in Christchurch. Delta’s role was as a contractor providing infrastructure services to the developer, Noble Investments Limited. Recovery of the outstanding debt has been held up by a longstanding dispute between the developer and neighbouring properties that has delayed titles being issued for the subdivision.

Mr Crombie says Delta remains fully focused on recovering the outstanding debt owed by the original developer and has mortgage securities in place for the amount owing.

Note: The Dunedin City Council owns Dunedin City Holdings Ltd, which in turn owns seven subsidiary companies being:
● Aurora Energy Ltd
● Delta Utility Services Ltd
● City Forests Ltd
● Dunedin City Treasury Ltd
● Taieri Gorge Railway Ltd
● Dunedin Venues Limited
● Dunedin Venues Management Limited

and a 50% share in Dunedin International Airport Ltd.

Contact Chairman , Dunedin City Holdings Ltd on 03 477 4000.

DCC Link

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Posted by Elizabeth Kerr

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

Delta #EpicFail —The End Game according to CD

Updated post
Mon, 1 Aug 2016 at 9:54 a.m.

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Received from Christchurch Driver [CD]
Sun, 31 Jul 2016 at 9:50 p.m.

Readers and Councillors, there is a way out of the Noble Quagmire— but first, not before there is a wholesale clean out of the Delta senior management and directors, or those that have either created this toxic mess or allowed it to continue, which is all of them.

As time is tight, we will not dwell yet again on this topic…. but we will return.

After spending many months considering this toxic mess and the abysmal management and governance that is evident, your Correspondent has come to a conclusion that shocks even him, but desperate times call for if not desperate, then extreme lateral thinking :

After a clean out at Delta, we must hold our collective noses and Council must do the unthinkable and spend MORE ratepayer funds and BUY OUT GOLDBAND’S 32.50% SHARE OF THE FIRST MORTGAGE and take control of the ENTIRE SUBDIVISION.

Council need only to buy the $2.7M Gold Band First Mortgage to have complete control of the project. There of course remains the issue of the Neighbours and the ongoing court actions, but the Neighbours are very willing to work with Council (not Delta) and they have estimated that a solution to provide for their interests could cost around $2M.

The Neighbours have offered to meet with Councillors immediately, at any time to discuss and resolve the issue. The alternative is ongoing legal action with the Council in a very weak positon. Certainly, Crs Calvert and Vandervis, and other Councillors also share this position.

█ Here is the Outline Plan

1. DCC – (Preferably NOT Delta or DCHL) spends $2.7M to buy the remaining first mortgage. To be free of the toxic taint of the DCHL, ideally a separate Council Owned Company may need to be created. Tax issues may mean it has to stay within Delta but every effort should be made to avoid this. Once the $2.7M mortgage is bought there are no external interest costs, just some rates and insurances, which are minimal in the overall scale of things. Council then has time to make informed decisions. THE IMPORTANT THING IS TO AGREE TO BUY THE MORTGAGE AND STOP THE CURRENT MORTGAGEE SALE (which is possible with the agreement of the Neighbours under s102 of the Property Law Act).

2. BEFORE the remaining mortgage is bought, do a deal with the Neighbours to satisfy their interests which will cost around $2M, plus some amount for Neighbours’ costs – this might be around $500-600,000. The legal costs might grate but that is the cost of acting like a corporate criminal. This step provides certainty to Council there will be no more legal delays that have added years to the project.

3. The DCC appoint a directly employed project manager that is answerable directly to the DCC CEO, and set in place very clear KPIs and make a very large proportion of his/her remuneration subject to those KPIs. NOT a “Consultant” and DEFINITELY NOT Mr Mike Coburn or any other person associated with past or present Directors.

4. That project manager will have full visibility of absolutely all costs relating to the subdivision past and present, and will present full and detailed monthly reporting to Councillors and DCC Management and appear at all Council meetings. The project manager will have complete control over the Delta CEO on this matter.

5. Resolve with Christchurch City Council and Yaldhurst Community what is required to make a workable and safe subdivision.

6. Complete the work required to sell the first stages of the residential subdivisions – there are around 80 sections ready to go and if a deal was offered to a housing company like Mike Greer Homes that had demonstrated expertise and capacity to build cost effective homes, the deal would be done in a week. The remaining work would NOT be done by Delta but by a small efficient company. Above all, it is important that the work awarded by the DCC project manager is an open and transparent process and there are no links to Delta or DCHL Directors, past or present.

7. Councillors must understand the land will never be worth less than it is now – they must avoid Denham Shale-like stupidity that occurred at Luggate where land was sold for a fraction of the cost, only for the sections to be marketed several years later at prices that would have yielded Delta all of its funds spent there, interest and a profit besides. Council must learn from the mistakes past, not repeat them, otherwise there will be more Auditor-general and Ombudsman reports, and it won’t be good for Council.

8. Councillors must resist temptation to bow to the Delta / DCHL Directors recommendations to sell now – the overriding concern of these incompetents is to sweep this toxic mess under the carpet and hope that Ratepayers will buy the TINA line – there is no alternative, we just had to move on with another $10-20M loss….

9. The directors will be pushing hard for a quick sale and say in effect : “If you don’t accept this mortgagee offer there won’t be another as good” which is utter rubbish. There were several mortgagee offers, despite the property being marketed over the holiday break and with a lot of complexity in the sale document that wrote off large chunks of value. But the essential point is that the first sections that are almost ready and all or part of the commercial land is sold off separately, then Delta plus get MORE than what is currently available :

10. What is the ultimate value of the land ? Very quickly, there is over 35,000 m2 of commercial land, for a major commercial centre including retail anchors and specialty shopping that is already master planned with the main entrance road virtually complete. This excludes the main entrance road and shared parking circulation roads. Even in a fire sale this land is worth around $90-100 /m2. This alone is a value of $31M minimum, Councillors. Admittedly it will take time to sell down, but the upside is huge again – even industrial land in Christchurch is $250-300 /m2, and commercial zoning is worth more again. Completed, in an orderly sell down over time, 35,000 m2 at $300 /m2 is …. too big to contemplate !! The 80 completed sections would be worth around $9M nett after selling costs, and then there are 190 consented but undeveloped sections that your Correspondent says are worth around $9M also. These end value figures are why Noble are fighting so hard to regain control of the asset. Yes, there is some re-work and further costs, but they are small in relation to the total asset. The key is not to pass that value to some bottom feeding vulture at mortgagee sale that is likely to be NIL in disguise. NOTE : Your Correspondent has not calculated in detail the area of the commercial land.

11. The Delta Directors and Mr Crombie, Mr Dixon and Mr Cameron cannot be trusted. They have not ever given Councillors the full facts about a range of matters, have at best misled Mr McKenzie. Their willingness to simply close the door and accept a huge loss on this deal is plainly evident by the fact they wrote off in excess of $10M in their 2015 accounts. They just want to forget this mess ever existed, because it is Other People’s Money.

12. Councillors should consider 2 final facts : The only way that the $24M investment that ratepayers have made in this project to be protected and repaid is if Council finishes the project, even if just in part. With what has gone on, there must be full accountability and transparency which can only be achieved by full Council control. The other thing to remember is that Council has already set a precedent to bail out loss making Council enterprises : It’s called the stadium. Council agreed to reduce the rent by $1.85M per year. If Council takes an amount equal to around 18 months of Stadium rent subsidy to DVML, it can have control over the subdivision and very likely make back at least the $10-15M in interest costs that would pay for the Luggate and Jacks Point debacles !! Result !!

Go on Councillors, make a sensible and decision tomorrow and make us proud.

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

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