Weathertightness case stretches council’s legal budget

Glyn Lewers
Glyn Lewers
A legal budget blowout for the Queenstown Lakes District Council is being attributed to defending a "large weathertightness claim" in Queenstown.

At Thursday’s finance, risk and audit committee meeting, Councillor Glyn Lewers questioned the legal spending to date for the year, saying it was "at 117%, 50% through the calendar year".

The year-to-date adjusted budget was $1.51 million, but the actual spend was $3.52 million.

Finance, legal and regulatory general manager Stewart Burns said those costs related to the Oaks Shores weathertightness claim - that item was discussed in private.

The 84-unit Oaks Shores, in Frankton Rd, was developed by Invercargill-based Ross Wensley, whose companies have since been declared insolvent.

In December, Mountain Scene reported the estimated repair bill was $120 million and its body corporate was suing the council, a court date set for next year.

It is the third Frankton Rd apartment complex developed by Mr Wensley to have problems.

Owners of the 41-unit Oaks Club Resort, built in the late 2000s, had sued the council and other parties, but settled days before a scheduled court case last October. That repair bill was estimated to be up to $45 million.

The 24-unit The Point had to be completely rebuilt - in 2010 the council stared down a $3.8 million leaky-home lawsuit brought by its owners.

Mr Burns told the committee on Thursday, generally, the council would look to make budget adjustments to offset the legal spend and highlighted interest expenditure, with a year-to-date adjusted budget of $4.48 million, as an "obvious area" to look at.

tracey.roxburgh@odt.co.nz

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