Minister signs Nelson storm recovery deal

Minister for Emergency Management and Recovery Mark Mitchell has seen firsthand the recovery work underway in Nelson following the severe weather event in August 2022.

During a visit on Monday, 15 July 2024, Nelson Mayor Nick Smith and Nelson City Council staff pointed out the work that would be completed with the assistance of a Government cost-sharing package worth up to $12.3 million, signed by Minister Mitchell. 

This package includes:

• Up to $6 million for the betterment of slips from Council-owned land affecting residential properties;
• $300,000 to monitor the Tāhunanui Slump, covering a period of 10 years at $30,000 per annum;
• Up to $6 million as a 50% contribution to support the buy-out of up to 17 slip-affected properties that meet Council’s eligibility buy-out principles.

Minister Mitchell says he is pleased property owners who are eligible for buy-outs under the joint Crown-Council package now have a way forward.

“The fallout from the August 2022 storm left these people in an uncertain position. I hope this voluntary buy-out package can help them face the future with a surer footing. 

"I am also pleased to see Nelson City Council improving resilience as it repairs the slips on its land. Severe weather events will strike again so stronger resilience and mitigation measures are very important.”

Mayor Nick says the signing of the Government-Council agreement is another positive step in the recovery work in response to the August 2022 storm, the worst natural disaster to hit the Nelson region in 50 years.

“Nelson is grateful for the Government support, particularly at a time when households and businesses are under so much financial pressure. The combination of this specific package and other Government contributions brings the level of Government support to $26.3 million, leaving Council with an estimated repair bill of $87.2 million. This Government support enabled us to reduce the storm recovery charge from $440 to $300.

"Council can now get on with the buy-outs for families left in limbo with properties that are uneconomic to repair. They have faced 22 months of uncertainty and now have a clear pathway to resolution.”

Moana Avenue resident Geoff Moffett is one of the property owners who faced that uncertainty and has been assessed as eligible for the buy-out scheme.

“There’s sadness and relief for us after nearly two years of a life in limbo. We are sad to farewell our home of nearly 20 years. And we are relieved after a long battle to get to this situation. Now we can plan for the future, although the details of the buy-out are still to be finalised.”

Mayor Nick says there are lessons to learn from the recovery work.

“I have put to the Minister that councils could save money and time if we also had access to fast-track processes for financing and consenting recovery work as we do for the emergency phase of a natural disaster. The bureaucratic processes of the Local Government Act have delayed this agreement by eight months, and I would like to work with the Government on reform to enable recovery work to be sped up.

Council Deputy Chief Executive/Group Manager Infrastructure Alec Louverdis says letters have been sent to seven property owners assessed as eligible for the voluntary buy-out scheme.

"Those who wish to participate have been asked to confirm their interest by 5 August 2024. Meetings will then be arranged for each participant to explain the process in more detail.

“Nine properties in Brook Street that Council has already bought will also be eligible for the scheme, meaning Council will now be able to claim a Crown contribution towards these purchases as well. Council purchased these Brook Street properties earlier this year after investigations revealed the landslide risk from the Council-owned land was higher than previously thought, and there was no reasonable or cost-effective way for Council to remediate these slips.”

Mayor Nick says Council does not intend to allow anyone to build on the land again.

A bund will be installed to protect Council assets and neighbouring properties, and the land will then be planted, potentially becoming part of the Tantragee Reserve.

The Government contribution of $300,000 to help Council monitor the Tāhunanui Slump is another key element of the cost-sharing package.

“With 120 homes, of which 45 suffered damage in the August 2022 storm, along with a swathe of Council infrastructure, Government support for ongoing geotechnical monitoring is very welcome,” Mayor Nick says.