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CDC pays above CV for land

Carterton District Council has paid $1.1 million over capital value for a parcel of land next to its wastewater reservoirs.

However, Carterton Mayor Ron Mark is “confident it will prove its value” and noted the asset was a “long-term strategic gain” for the district.

The council had paid above “market value” to secure the property, which would prove invaluable to the council’s wastewater strategy going forward, he said.

Of the $4.5m purchase price, $3.6m will be loan-funded and serviced over the next 30 years. The rest was funded through reserves.

The purchase price was disclosed at a recent council meeting and has a rates increase impact of 2.5 per cent in the coming financial year.

It was included in the council’s Long-Term Plan Consultation Document as an item the council welcomed feedback on.

Despite not being in the 2023-24 Annual Plan budget, CDC approved the purchase last year in public exclusion “due to the rare opportunity to purchase such land”.

It was discussed in public exclusion due to commercial sensitivity.

A CDC spokesperson said the purchase was made to expand the council’s strategy to remove the discharge of treated wastewater into the waterways.

“The purchase allows CDC to extend its strategic aim.

“It also opens up the possibility for other uses related to our wastewater operations, such as furthering our partnership with Greater Wellington Regional Council and Ngati Kahukuraawhitia for an extension to their nursery activities.”

The land was previously sold in 2018 for $2.65m.

According to the CDC website, capital values are for rating purposes and “is the likely price you could sell a property for at the date of the council’s last general revaluation”.

The capital value of 44 Matarawa Rd – the property the council purchased – was $3.344m as at September 30, 2023.

Council bought the land two months later for $4.5m.

-NZLDR

Public Interest Journalism funded through NZ On Air

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Emily Ireland
Emily Ireland
Emily Ireland is Wairarapa’s Local Democracy Reporter, a Public Interest Journalism role funded through NZ On Air. Emily has worked at the Wairarapa Times-Age for seven years and has a keen interest in council decision-making and transparency.

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