FAQs - Awatarariki Fanhead Matatā Managed Retreat

There are two Navigators who can call or visit anytime that suits.  After talking with property owners to find out about specific concerns, practical assistance can be provided, along with access to services and further information.

This can include: information about the acquisition process, free legal or financial advice, health or counselling services. This support is available throughout all stages of the Managed Retreat process.  
Property owners are encouraged to make use of all available services to ensure owners receive the support that is needed. All navigator services will be free and confidential and available at any stage of the process for property owners.

About the Navigators: Chris King-Hazel (left) and Vicky Richards have both worked with communities before, most recently during the Edgecumbe Recovery.   
You can contact Chris on: 027 4400 219 and Vicky on 027 3093657 any time.

 
Chris King-Hazel and Vicky Richards

The initial timeline for the acquisition process was presented at the meeting on 16 July 2019. In response to the concerns raised at the meeting in July, the Council made some changes.

The new timelines are:

No. The retreat package has been offered to every eligible property owner on an individual basis. The process begins as soon as the property owner signs consent.

The Council has already been approached by many property owners who want to participate and have entered the process. Other property owners may take more time to consider their options, or choose not to participate. 

Yes you can. If you have a house on your property, as well as accepting the acquisition offer, you will also be able to relocate your home onto another site at your own cost (if feasible). You will need to make arrangements with the Council’s appointed site contractor to do this once settlement occurs. If you decide to take your house, you’ll be required to pay the Council for the clean-up costs of the site. This needs to happen to ensure all properties are left vacant and cleaned up to the same standard so they can be included in a proposed future coastal protection zone.

The details of each individual offer will be different because the circumstances of each property owner are different. This could mean that the date of settlement may vary from one property owner to another.  Each property owner will be able to negotiate the details of settlement with the Council, to take into account the owner’s particular circumstances. 

The ‘Recent Sales’ provisions apply to three properties that went through a sale and purchase process after 1 January 2013. This is because they were purchased at a discounted price that was influenced by the public information that was available at the time regarding the Council’s decision to not proceed with an engineering solution, but to consider a risk-based planning solution.

The method to be used for these properties will calculate the property value, benchmarked to the purchase prices, then be adjusted by the property market movement for Matatā between the time of purchase and today. Improvements made following purchase will also be factored in.

No, the valuations are not decided by the Council. All valuations will be market valuations that don’t take into account the hazard, and will be done in line with the Property Institute of New Zealand Professional Practice Standards as adopted at the date of the valuation, and the International Valuation Standards (IVS) 2017. These standards define Market Value as:

"Market Value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion."

Yes, you do. Any valuer you engage to get a separate valuation will be required to comply with the Property Institute of New Zealand Professional Practice Standards, as adopted at the date of the valuation, and the International Valuation Standards (IVS) 2017. This also applies to the Council's valuer.

The instruction for valuers identifies the specific Standards. Market valuations that do not comply with the Property Institute of New Zealand Professional Practice Standards as adopted at the date of the valuation, and the International Valuation Standards (IVS) 2017, will not be accepted.

Download the Property Valuations Brief for Valuers Acting for Property Owners - (PDF, 624 KB)

After the meeting with affected property owners in July 2019, the Council asked Graeme Bates of The Property Group to identify valuation firms in Tauranga willing to help. The valuers listed below have agreed to act for individual property owners:

• Property Solutions Ltd; 1/30 Willow Street Tauranga.  Valuer Simon Harris: Phone 07 542 3950, Mobile 021 285 9936.
• Preston Rowe Patterson Ltd (PRP); 40 Wharf Street, Tauranga.  Valuer Jason Coulson: Phone 07 927 7544, Mobile 021 248 5810.
• Mount Valuation Ltd, 321 Maunganui Road, Mount Maunganui. Valuer Mark Hinton: Phone 07 575 5363, Mobile 0272 271 213

You can engage any registered valuer of your choice. The costs will be paid for by the Managed Retreat Programme.

Council’s only requirement is that the valuations must identify market value and comply with the Property Institute of New Zealand Professional Practice Standards as adopted at the date of the valuation, and the International Valuation Standards (IVS) 2017. Valuations that do not comply with these Standards will not be accepted.

The Council has prepared a brief that can be given to valuers when property owners are instructing them. It has the same requirements as the brief given to the Council’s valuers. The brief details the appropriate valuation standards and ensures a consistent NZ methodology is used for valuations.

The valuation process involves having a market valuation done by a registered valuer engaged by the Council and then having the valuation peer-reviewed by an independent valuation expert.

All property owners are encouraged to engage their own valuer to address any concerns they have around the independence of the valuation.

Because this process includes professional advice and input from three separate valuers, a third valuation is not needed.

The valuers engaged by the Council are:

• Valuer: Shayne Donovan-Grammar of Telfer Young Ltd I - a Registered Valuer, Senior Member of the Property Institute of New Zealand, an Associate Member of the New Zealand Institute of Valuers
• Telfer Young peer reviewer: Alistair Pratt is a Registered Valuer, Fellow of the Property Institute of New Zealand and a Fellow of the New Zealand Institute of Valuers
• Independent peer reviewer: John Reid is a Registered Valuer, Fellow of the Property Institute of New Zealand and a Fellow of the New Zealand Institute of Valuers.

No, the valuations will not be affected by the amount of money available. This is because a series of market valuations have been done during the past three years to make sure there is sufficient funding available to purchase all the properties at risk.

Valuations were carried out in 2016 to provide an initial indication of the funding needed to purchase all high risk properties. Those valuations were reassessed in December 2018 to take into account any changes in the property market since 2016. A further allowance was then made to cover any likely changes through to July 2019. This process means the Council is very confident that the funding package is sufficient enough to cover the purchase of all properties at a fair price.

All submissions related to the cause of the debris flow in May 2005 were considered. The suggested causes included historic quarrying activities at the bottom end of the catchment and a lack of catchment management.

Immediately after the May 2005 event, the Council commissioned GNS Science to identify the causes of the debris flows. Its report¹ investigated a range of potential causes and concluded that the debris flows which impacted the Matatā Township were natural events. The report identified that high-intensity rainfall triggered hundreds of debris avalanches in multiple tributaries that transformed into debris flows. The report also showed that there was evidence of historical debris flows including some larger than the 2005 event.

In 2018, the Whakatāne District Council and the Bay of Plenty Regional Council jointly consulted on the two proposed plan changes.

In response to submissions and feedback from property owners to extend the timelines for the managed retreat process, the proposed date of the combined plan changes hearing has been extended to early-March 2020. Submitters will be advised of the new hearing date.

The Council's key concern since 2005 has been managing the risk from future debris flows upon the Matatā community.  Risk assessments confirm the risk to life from future debris flows is high. The Council is required by law to take active measures to reduce that level of risk. The Council has no choice but to act.

Unfortunately, no solutions to reduce risk such as engineering, early warning systems or catchment management practices have been found to be viable.  This has resulted in managed retreat being the only option remaining to reduce the risk to people and property on the fanhead.

Council has worked with the Bay of Plenty Regional Council and Central Government to put together a funding package to provide the opportunity for property owners to have their properties acquired at market value and relocate away from the high risk area.

The Plan Change proposals are the legal mechanisms that support the managed retreat option. Some submissions on the plan changes requested the plan change hearing be delayed to enable the managed retreat process to be completed first. The Council has responded to that by requesting that the hearing date be moved to March 2020. Leaving the managed retreat offer open until after the plan change process has been completed does not support the reduction of risk the Council is required to achieve.

The Public Works Act process can only be used when land is being acquired for the purposes of public works. In this case, property owners have been provided with an opportunity to relocate away from an environment with a high life safety risk. This is not a public work, which is why the subsequent acquisition process does fall under the Public Works Act.

While some of the property owners may be prepared to take the risks associated with future debris flow events, the Council is required by law to manage this risk. In fulfilling this responsibility, the Council adopted a scientific risk assessment framework as the starting point.

The scientific approach followed by the Council for the Awatarariki Fan Head, identified the risk to Fanhead properties as 'High' which means the Council is required by law to reduce high levels of natural hazard risk. The Council would be failing to carry out its legal duty if it allowed property owners who want to remain, to stay.

During any future debris event, not only would residents be at high risk, but so too would emergency services and support personnel who would be called upon to assist property owners in a disaster event.

As a property owner you can choose to participate, and you can opt-out at any time during the process until you sign a Sale and Purchase Agreement.

All eligible property owners, will want to carefully consider all the information and options available for the managed retreat programme. Some property owners may initially choose not to participate but then after further consideration, may change their minds and want to enter the process.

The property owners who choose not to participate, or opt-out after commencing the retreat package process, can continue to occupy their homes, until such time as Plan Change 17 (Natural Hazards) to the Regional Natural Resources Plan is determined and comes into effect.

The decision on submissions to that Plan Change will then determine the future land use. If the Plan Change, as notified, is approved, property owners will lose their existing use rights and continued occupation of dwellings from 31 March 2021 will become unlawful.

As the plan change process progresses, the Council will continue to inform and engage with property owners who do not choose to participate in the managed retreat programme.

The Council, Regional Council and Central Government all acknowledge that property owners have faced a lengthy time of uncertainty and anxiety. Significant work has been carried out to ensure the retreat package can provide robust market valuations along with assistance for all property owners to make informed choices.

The Council has prepared a support package designed to provide property owners with access to services that will provide assistance throughout this process. This support includes a Navigator who is appointed to work on a personal basis and provide property owners with one-on-one information and assistance.

The Navigator can call or meet with property owners at a time and place to suit, in order to develop an understanding of specific needs and provide assistance with accessing information and services. This support could include free legal and financial advisory services as well as health and counselling services. Participation and take-up of any services is entirely voluntary.

No it does not. You can choose to opt-out at any time during the process until you sign a Sale and Purchase Agreement. 

If there are items on the property you wish to take with you when you relocate, you can negotiate this as part of the acquisition process noting that this may have an impact on the purchase price.

The upcoming local government elections will not affect funding for the acquisition programme. Although the Bay of Plenty Regional Council (BOPRC) still has an additional administrative procedure to undertake to make the funds available, the Chairman and Chief Executive confirmed at the property owner meeting on 16 July 2019 that BOPRC is committed to the programme. 

Once the Council receives a valuation for a property and it has gone through the peer-review process, a meeting will be organised with that property owner to present the valuation and to understand the property owners' circumstances. This includes identifying which, if any, of the additional acquisition strategy components apply (e.g. legal costs, relocation, mortgage break fees), as well as confirming if the property owner wants any/all of the buildings, a preferred settlement date etc.

Following that meeting, an acquisition offer will be prepared and presented to the property owner at a second meeting. Where property owners live remotely and the property is a section, the owner may be phoned in lieu of the first meeting.

Yes it is. Keep in mind that the valuation is one component of the acquisition offer. Additional components include additional contributions to legal costs for the sale of the existing property and purchase of a new property, relocation expenses (where the property is the owner's primary place of residence) and mortgage break fees where applicable.

Where a difference between valuations arises, there is a process to work through to endeavour to resolve any differences between the valuers. The first step in the process involves a meeting between valuers facilitated by Greg Ball of The Property Group.

If agreement cannot be reached, an arbitration option is available which involves both valuers presenting evidence to an arbitrator appointed by the President of the NZ Institute of Valuers. This would result in a final acquisition offer which could be accepted or rejected by the property owner.

This would need to be dealt with on a case-by-case basis. The Acquisition Strategy which has been approved by Council, specifies covering costs of mortgage break fees. However, if a term deposit needed to be used to acquire a replacement property of similar quality but a higher value than the acquisition offer was able to provide, this could be considered. A case could be developed to support payment of a penalty to break a term deposit where that penalty was comparable in value to a mortgage break fee.