A draft indicative business case to support a request for Government and Bay of Plenty Regional Council funding for a voluntary retreat process for property owners on the Awatarariki Stream fanhead at Matatā is nearing completion.

Progress on the business case development was reported to the Whakatane District Council last week and Council elected members unanimously endorsed the objectives and key concepts involved. The Council also agreed to formally engage with the Government and Regional Council to further develop the indicative business case.

The voluntary retreat proposal aims to address the high loss-of-life risk affecting properties in the residential area adjacent to the Awatarariki Stream, at the western end of Matatā. Debris flows were experienced from a number of streams in the Matatā area in 2005, following extremely high rainfall in the steep valley catchments behind the town. An estimated 300,000 cubic metres of rock, wood debris and slurry was deposited on the Awatarariki fanhead, devastating all of the properties in the debris flow’s path. Engineering work was undertaken to reduce the risks posed by repeat events for other urban areas, but after investigating a number of options for the Awatarariki catchment, the Council’s engineering consultants advised in 2012 that no viable solution was available to address the risk a future event would pose for residents.

The business case will set out the justifications for a managed, voluntary retreat which, if financial support can be secured from key funding partners, would see acquisition offers – at current market value - made to the owners of the 34 affected properties, including 16 houses.

Responding to the report, Councillors stressed that the potential $12-plus million cost of acquiring the at-risk properties would only be affordable with external funding assistance.

Councillor Mike van der Boom acknowledged the "unbelievable" amount of work that had gone into preparing the draft indicative business case. "I know there have been some difficult conversations and I believe some people feel that the property values set out in the voluntary retreat proposals are not enough."

Strategic Projects Manager Jeff Farrell replied that most of the responses received following the face-to-face meetings to explain the proposal had been positive. "If the proposal does proceed, property values will be revisited before any formal purchase offer is made. Owners can also arrange their own valuations and at the end of the day, anyone who feels that their property is worth more than the value being offered can decide not to be involved."