Council completes buyouts of red-stickered properties

Council has completed buyout negotiations with the homeowners of properties that were damaged by slips during the August 2022 weather event and can now announce the future of these properties.

Nelson Mayor Nick Smith says settling the buyout negotiations for the worst-affected properties from the August 2022 storm is a significant milestone.  

“This pragmatic solution, with the support of 50% funding from central government, has seen Council buy 16 properties. It enables the affected families to move on with their lives and the slip-prone land will no longer be used for housing, reducing the risks for the city from future events.” 

Council’s Group Manager Infrastructure Alec Louverdis says Council’s recovery team worked hard to get to this stage in the process.  

“It’s been a long yet very rewarding process with many challenges, but we’re pleased that we could arrive at a place that will allow these residents to leave a difficult chapter of their lives behind them.”  
The buyout of properties damaged by slips from private land was made possible due to a $6 million contribution (as part of the wider $12.3M package) from central government that Councillors voted to accept during the 2024 Long Term Plan (LTP). 

Eleven of the properties were in The Brook, four in Tāhunanui and one in Bishopdale. Negotiations for the properties damaged by slips that originated on private land began in July 2024 after the LTP was adopted, and the final property on Rocks Road was settled this month. 

Alec says the homes are to be sold for relocation where possible or deconstructed.  

“This process has already occurred with properties on Brook Street. Three of the houses in this second tranche have been identified as being suitable for relocation, these are currently listed for sale. The tender for the deconstruction of two homes on Rocks Road and one on Seymour Avenue is underway, and the work will occur in the coming months. 

“This is a significant milestone for the recovery project following the August 2022 weather event. Council is in this for the long haul and committed to a full recovery. The buyouts, and what we do with the land to make it safe, is a big part of that and I’m pleased that the team working on this project have managed to reach this point so efficiently.”  

Mayor Nick says two changes are needed to better manage future risks. 
“We are changing our natural hazard management rules through Plan Change 29 so we are more careful in future about where we allow homes to be built. We also need reform of our insurance and EQC coverage, so Councils and ratepayers are not having to fill the gaps in coverage. The system is flawed when a homeowner pays their insurance and EQC levy, and their home cannot be lived in after a storm event due to increased landslip risk, but they cannot get their property fixed or receive compensation for it.”