Council seeks govt help over South Dunedin buy-up

The Dunedin City Council has asked for the government's help as it investigates a $132 million programme to buy up properties in South Dunedin as part of efforts to adapt to climate change.

After information leaked to the Otago Daily Times, the council issued a statement this afternoon confirming it had started early discussions with Treasury about government support for a voluntary property acquisition scheme.

It confirmed in the statement that early thinking on strategic property acquisition had been discussed with central government in recent months, and this has been developed into a draft indicative business case, which has been submitted to Treasury.

It stressed under the approach being considered no-one would be forced out of their homes.

Instead property would be purchased voluntarily on the open market, acquired gradually over decades, and then used to enable the South Dunedin climate change adaptation strategy currently under development with the community.

South Dunedin Future Programme manager Jonathan Rowe said he initial estimated costs of the plan were $132 million over an initial five-year period based on buying 65 properties a year.

The buying up of property could begin as early as July 2024.

"This approach could help South Dunedin get ahead of the problem, be more resilient, provide certainty and reassurance to the community, and save ratepayers and taxpayers money in the long term."

Property could be acquired early with adaptation plans in mind, but before final decisions were to be made.

In the short term, property could be retained, potentially rented to maintain housing supply and provide a revenue stream to offset some costs.

In due course, the property could be used for a range of adaptation projects - pumps or pipes, parks or wetlands, or new more resilient housing developments.

Mr Rowe said the property could also be used in the event of managed retreat from parts of South Dunedin.

The council needed government help to go ahead with the plan.

"It's probably at a scale where we can't really do it on our own, so we would need government help."

Mr Rowe said it was "unfortunate" the council's discussions with Treasury had leaked to the ODT, but did not have significant concerns about the public finding out.

Dunedin Mayor Jules Radich called the plan "proactive and ambitious".

"If we start acquiring property today, it will give us more options tomorrow, meaning we’ll be better placed to build a new pipe, expand a park, or move a house - whatever is required to make South Dunedin a safer and better place to be,” Mr Radich said.

A Treasury spokesman confirmed it had been approached by the council, but said it was unable to provide further information while the matter was under consideration.