New Zealand
Local Democracy Reporting

Nelson floods: Council concern over buyout plan precedent

September 15, 2023
Up to 14 storm-damaged properties could be bought by Nelson City Council thanks to government funding.

The cost of buying out storm-damaged homes in Nelson will be split evenly between the local council and Government.

A year on from the devastating floods, Nelson City Council voted to approve, in principle, the deal, in cases where the cost to repair a home is greater than the value of the property.

"We are now down to a relatively small number of [severely-affected] homes and really difficult cases," Mayor Nick Smith said. "We do need to find a pathway for addressing them."

The Government has agreed to provide $6 million to go 50/50 with the council on buying out up to 14 properties — in what is a similar offer to those offered to northern storm-affected regions.

However, while councillors generally agreed that the council should buyout property owners, there was nervousness from some about future uncertainties.

The key concern revolved around council setting a precedent that it would buyout all properties whose damages exceed their value after future storm events.

Smith acknowledged that the buyouts could add political pressure in the future, but said the council wouldn't be obligated to do so as every event would require a unique response.

"The circumstances of August 2022 were extraordinary, and when you have extraordinary events, sometimes you need to do unusual things to fix the problem."

Councillor Mel Courtney expressed concern about the extent of council support and questioned how many of the 14 properties were affected by slips from private land.

"I do caution us going down this track because there needs to be… a very clear cut-off point; it can't go on ad infinitum."

About five of the 14 properties were affected by slips from private land, according to Smith.

Nelson Mayor Nick Smith said that buyouts are the best solution to provide affected families some certainty.

Deputy Mayor Rohan O'Neill-Stevens and councillor Rachel Sanson noted that the buyout decision effectively marked the beginning of a policy of managed retreat from land vulnerable to the effects of climate change.

"It's a conversation we should be having broadly with our community," Sanson said. "This is maybe the first real instance of this happening in this region, but there's going to be a lot more situations like this in future."

The lack of details on if more than 14 properties could be affected, the cost of deconstructing the uninhabitable homes and replanting the sites as reserves, and the equitability of the buyout process were all additional concerns held by councillors.

"There still needs to be more clarity for us to make a good governance decision," councillor Tim Skinner said.

Chief executive Nigel Philpott agreed and highlighted that a report on the topic would be brought before council in October before a final decision was made.

"It's a gnarly problem, it's a difficult one, but I want to bring you the full facts before we make a decision."

He did, however, caution that the situation is dynamic and that any report would never be completely accurate.

Smith also acknowledged that the decision was "not without risk" but said there was no other option.

"If this is not the answer for those people, please tell me what is, because in asking that question for six months, nobody else has been able to give me a better solution."

By Max Frethey, Local Democracy Reporter

Local Democracy Reporting is Public Interest Journalism funded through NZ On Air

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