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Teitei - what changed in budget blowout / affordability

Ohakune Ratepayers and Residents' Society Inc made this Official Information request to Ruapehu District Council

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From: Ohakune Ratepayers and Residents' Society Inc

Dear Ruapehu District Council,

== Supporting facts ==
The original CIP applications contained statements that the Teitei Drive property was shovel ready and the consent was simple and wouldnt require fast track

On 4th April 2023 an agreement was signed to provide 15/15/14 homes at Teitei Drive using $5.2m of Government/CIP funding.
- The next month (may 2023) there were internal discussions that this amount would need to be topped up to $7.5m, with KO funding the $2.3m shortfall
- In June and July, internal emails show the amount was increased by $2.3m with KO funding the shortfall by "selling houses"
- OIA's reveal that costs to provide services (potable water main & high pressure sewer outflow) to/from the boundary of Teitei would be a burden on RDC and not funded by the $7.5m

With RDC being partner to the project and a decision maker DPM, I have the following questions.
1./ How much was RDC to fund for external development outside the boundary
2./ How much was RDC to receive for the sale of Teitei to fund point 1
3./ What changed between the shortfall of $2.3m discovered 1 month (May) after contract signing (April 2023), and the shortfall that ultimately killed the project with letter sent end of feb 2024
4./ "The Partners" advertised "Affordable" housing and "Workers Accommodation" throughout campaign , knowing $7.5m or $170,454 (EXCL GST) average per lot and before any cost overruns, please provide supporting documentation to support the claim of being affordable when compared to market available lots (with more land) under this price being available.
5./ Please provide budget costs with breakdown that made up the $5.2m originally anticipated for development, then the budget cost shortfall breakdown discovered between may-jury, and then the same for the budget costs breakdown referred to in letter released Feb 2024 stating the shortfall.

Yours faithfully,

Ohakune Ratepayers and Residents' Society Inc

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From: Info
Ruapehu District Council

Dear Sir/Madam,

Thank you for your Request for Official Information received on 20 March 2024 relating to the following:
1./ How much was RDC to fund for external development outside the boundary
2./ How much was RDC to receive for the sale of Teitei to fund point 1
3./ What changed between the shortfall of $2.3m discovered 1 month (May) after contract signing (April 2023), and the shortfall that ultimately killed the project with letter sent end of feb 2024
4./ "The Partners" advertised "Affordable" housing and "Workers Accommodation" throughout campaign , knowing $7.5m or $170,454 (EXCL GST) average per lot and before any cost overruns, please provide supporting documentation to support the claim of being affordable when compared to market available lots (with more land) under this price being available.
5./ Please provide budget costs with breakdown that made up the $5.2m originally anticipated for development, then the budget cost shortfall breakdown discovered between may-jury, and then the same for the budget costs breakdown referred to in letter released Feb 2024 stating the shortfall.
We will endeavour to respond to your request as soon as possible with a decision and in any event no later than 19 April 2024, 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.
If you have any queries, please feel free to contact [Ruapehu District Council request email]. If any additional factors come to light which are relevant to your request, please do not hesitate to contact us so that these can be considered.
Please note that requests may incur a reasonable charge. We will contact you with an approximate cost, before we proceed, if applicable.

Yours sincerely

TeRina Turanga
INFORMATION MANAGEMENT OFFICER

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Original Message-----
From: Ohakune Ratepayers and Residents' Society Inc <[FOI #26175 email]>
Sent: Wednesday, March 20, 2024 11:24 AM
To: Info <[Ruapehu District Council request email]>
Subject: Official Information request - Teitei - what changed in budget blowout / affordability

Warning: This email is from an External Sender. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear Ruapehu District Council,

== Supporting facts ==
The original CIP applications contained statements that the Teitei Drive property was shovel ready and the consent was simple and wouldnt require fast track

On 4th April 2023 an agreement was signed to provide 15/15/14 homes at Teitei Drive using $5.2m of Government/CIP funding.
- The next month (may 2023) there were internal discussions that this amount would need to be topped up to $7.5m, with KO funding the $2.3m shortfall
- In June and July, internal emails show the amount was increased by $2.3m with KO funding the shortfall by "selling houses"
- OIA's reveal that costs to provide services (potable water main & high pressure sewer outflow) to/from the boundary of Teitei would be a burden on RDC and not funded by the $7.5m

With RDC being partner to the project and a decision maker DPM, I have the following questions.
1./ How much was RDC to fund for external development outside the boundary 2./ How much was RDC to receive for the sale of Teitei to fund point 1 3./ What changed between the shortfall of $2.3m discovered 1 month (May) after contract signing (April 2023), and the shortfall that ultimately killed the project with letter sent end of feb 2024 4./ "The Partners" advertised "Affordable" housing and "Workers Accommodation" throughout campaign , knowing $7.5m or $170,454 (EXCL GST) average per lot and before any cost overruns, please provide supporting documentation to support the claim of being affordable when compared to market available lots (with more land) under this price being available.
5./ Please provide budget costs with breakdown that made up the $5.2m originally anticipated for development, then the budget cost shortfall breakdown discovered between may-jury, and then the same for the budget costs breakdown referred to in letter released Feb 2024 stating the shortfall.

Yours faithfully,

Ohakune Ratepayers and Residents' Society Inc

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Ohakune Ratepayers and Residents' Society Inc left an annotation ()

19 April 2024

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From: Info
Ruapehu District Council


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Dear Ohakune Ratepayers and Residents Society Inc,

 

Please see attached letter of extension.

 

Regards

 

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