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 was leaked to the Otago Daily Times, the council issued a statement late yesterday afternoon confirming it had started early discussions with the Treasury about government support for a voluntary property acquisition scheme.
It confirmed in the statement early thinking on strategic property acquisition had been discussed with the government in recent months and had been developed into a draft indicative business case, which had been submitted to the Treasury.
It said under the approach being considered, no-one would be forced from their homes.
Instead, property would be bought voluntarily on the open market, acquired gradually over decades and then used to enable the South Dunedin climate change adaptation strategy, now under development.
The council’s South Dunedin future programme manager Jonathan Rowe said the initial estimated cost of the plan was $132m over an initial five-year period based on buying 65 properties a year.
The buying-up of property could begin as early as next July.
"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."
In the short term, property could be retained and potentially rented to maintain housing supply and provide a revenue stream.
Later, the property could be used for a range of adaptation projects — pumps or pipes, parks or wetlands, or new more resilient housing developments.
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 the Treasury had leaked to the ODT, but he 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.
