MAYOR CONFIDENT OF LAND SALES

Press, Volume CXIV, Issue 33649, 26 September 1974, Page 2

MAYOR CONFIDENT OF LAND SALES

Both the housing and property div ision of the Christchurch City Council and the council's treasury division were confident that the $500,000 the council hoped to obtain from land sales to help peg the rates would be available by the end of March, the Mayor (MrN. G. Pickering) said yesterday.

If the sale of land concerned were delayed, other land would be sold to make sure that the required money was obtained, Mr Pickering said. He was commenting on suggestions yesterday by Cr M. R. Carter, a Citizens’ Association councillor on the housing and property committee, that the poor response to the offering of 10 Smith Street sections indicated it would be almost impossible for the land sales i to bring in the estimated $500,000 by the end of the council’s financial year. “NOT WORRIED” The council’s housing and property committee chairman (Cr B. Alderdice) said that the council could carry any shortfall, and that he was not at all worried about the poor response to the ballot for the first 10 sections. Applications were received ■ for only five of the Smith Street sections, but Cr Alderdice said yesterday that he was sure the other 56 sections in Smith Street, 25 in

Pamela Street, and 16 in i Huntsbury Hill subdivision 'would meet with a keen demand. Income for the sale of the sections is earmarked for holding the council’s rates, and Citizens’ councillors have criticised the scheme from the outset, saying it amounts to selling off city assets for a politically-motivated shortterm benefit. SALE EXPECTED It has been estimated that 10 sections in Smith Street which may be sold to the Government should bring in about $100,000; another 46 sold by auction, or bv tender. more than $130,000 by March 31 — on the basis of 30 per cent of the price for each being paid by then — and the Pamela Street sections more than $85,000. There are 16 sections in the Huntsbury subdivision which would probably bring about $lO,OOO each, although some of this would be offset by development costs. The original 10 sections, of which five have been sold, were expected to realise about $25,000 by the end of the financial year. The reason for the poor response to the first 10 sections, which were priced from $9500 to $10,500, is not known, although two factors have been mentioned: the shortage of mortgage money, and the keen demand for earlier sections balloted by the council leading to a “We haven’t got a chance” attitude on the part of wouldbe entrants for the ballot. FALL IN DEMAND Cr Carter said yesterday that the demand for sections had fallen off recently, and he did not expect that buvers would “queue up” for the remaining sections. But Mr Pickering emphasised that the council planned to sell the land in the present financial year. The five sections not taken

from the 10 offered in Smith Street would be balloted again next week, he said. The Government was interested in buying some of the other Smith Street sections, and negotiations were tinder way. The rest of the Smith Street sections would he offered for sale by '.ender in November. GOVT INTEREST Mr Pickering said that the Government had also shown interest in buying six acres in the Pamela Street .block, and an agreement was expected soon. The Huntsbury subdivision was nearly finished, he said, and the sections would be sold before Christmas. Ministry of Works valuations were now being obtained so that an early settlement could be reached on the Smith Street and Pamela Street sections which were expected to be sold to the Government. Every effort would be made to make sure that agreement was reached so that the money from the sale could, as budgeted, be available this financial year, Mr Pickering said, “STARRY-EYED” The Citizens Association’s mayoral candidate, Cr H. G Hay, said last evening that he shared Cr Carter’s concern about the land sales, and he regarded Cr Alderdice’s attitude as “starryeyed optimism.” The chances of getting the money by March 31, were extremely doubtful. Mortgage money was “very tight” and unlikbly to improve in the next few months, he said, and time was running out. He would like to know how the Mayor was going to finance any shortfall, Cr Hay said. The public were entitled to know the extent of the financial problems with which the new council was likely to be confronted.