The Fiordland Community Board’s decision to appoint an out-of-town property company to find a developer for its newly announced Luxmore subdivision has upset Te Anau’s local real estate companies.

And a closer inspection by The Southland App has also raised some questions about the validity of community board’s resolution and subsequent announcement.

The published minutes of the community board’s 20th December meeting record that member Max Slee declared a conflict of interest regarding the development, which precluded him from taking part in discussions or voting. However, the minutes go on to record that the motion to proceed with the sole agency agreement with Colliers was moved by Cr Ebel Kremer and seconded by Slee, and was duly carried.

The Southland App asked the Southland District Council why Slee, having declared a conflict, was allowed to second the motion and vote on it, and what that now means for the validity of the decision. The minutes recording that meeting were passed unanimously at February's community board meeting as being a true and correct record, with nobody raising any issues or concerns.

However, last night (8th March) Fiordland Community Board chair Sarah Greaney said that despite the passing of those minutes as accurate, there had actually been an error and her notes "clearly show" the motion relating to the development as having been moved by Ben Killeen and seconded by Mary Chartres. She said the regular minute taker had called in sick at the last moment, the community board members had not had their name badges on the table and the replacement minute taker had recorded the wrong names in error.

"We're all human, mistakes do happen."

Earlier, Greaney said the appointment of Colliers to find a developer was an operational matter rather than a governance one. She said that her understanding was that the council had gone through the normal procurement process, that anybody had the option to put in a bid, and that it was Colliers that came forward with the successful proposal.

In response to questions from the Southland App, a Southland District Council spokesperson said 16 property companies were approached before the successful applicant was found.

"Southland District Council and the Fiordland Community Board sought strategic advice on land divestment focusing on strategic commercial matters, including the commercial risk and the benefits of outright sale, partial sale, undertaking a joint venture or Council proceeding as a sole developer. From there Council approached a number of agencies for their input and recommendations," the written response says.

The criteria used when choosing the successful applicant was: "Experience and track record in sales of block development land as well as the proposed methodology to deliver what Council and the community board were looking for, together with the ability to bring consultancy advice to the table."

However, all Te Anau’s three resident real estate agencies claim they were not approached, despite having the ability to meet those criteria.

PGG Wrightson Real Estate Te Anau manager Nick Robertson said he had been told by the community board that the real estate companies in Te Anau would have an opportunity to put something forward.

“I’m disappointed in the community board, because the community is not included in that decision,” Robertson said.

Ray White Real Estate Te Anau owner Don McFarlane said there was a question of community responsibility.

“How do you know you are getting a good deal if you don’t put it out there, particularly to your own community public who have a community vested interest in it?” McFarlane said.

Harcourts Gore’s resident agent Trevor Lyall was also unhappy with the decision.

“We are disappointed that [the community board] have chosen to bring in an outsider to sell. Harcourts frequently sell commercial property in Te Anau, Harcourts has a big commercial operation,” Lyall said.

The Southland District Council says Te Anau agents will still have the opportunity to market and sell all the lots created by the developer. 

"The brief was to find the agency that offered the best all-round value for Council and the community. The arrangement with Colliers terminates upon the sale of the Luxmore block. The appointment by the developer of a real estate firm for the sale of individual will be at the discretion of the developer. Therefore, Te Anau agents will still have the opportunity to market and sell all the lots created by the developer." 

The 12.67ha Southland District Council-owned “Luxmore” property is one of the last remaining major blocks of land in the heart of Te Anau. The Fiordland Community Board is overseeing the initial land sale, with the final development promising to include not only a residential and industrial subdivision, but also a provision for some emergency, social and low-cost housing.