Waitakere City Council calls in loan
10 August 2004
Waitakere City Council calls in loan in amicable outcome over unused Wananga land
Waitakere City Council has called-in a $2 million loan made to Te Whanau O Waipareira Trust in 1998, to assist the development of a Wananga (university) which did not go ahead due to changes in central government policy.
The loan was made to purchase land in West Coast Road near Parrs Park, from the Parr family and has been valued as being worth significantly more than the Council’s loan. The Council believes that other development that has occurred in the area, has increased its value since acquisition by the Trust.
“As far as I am aware, this is an amicable outcome on both sides. The original project did not eventuate and it was time to wrap up the loan. Both sides agree on that,” says Councillor Brenda Brady who chaired the Council’s August Finance and Operational Performance Committee, today.
Councillor Brady says she is anxious to squash rumours that the loan was in some way unauthorised. “People forget we are subject to very rigorous auditing processes. We made a loan by the proper process and last year we extended it by a proper process,” she says.
Councillor Brady notes that ratepayer’s money was never at risk as the Council had first mortgage security over the land which was always worth more than the loan. Te Whanau O Waipareira Trust have paid the interest on the loan, in full and there have been no costs arising to the Council.
Te Whanau O Waipareira Trust has more recently considered the option of using part of the land for residential housing purposes but no decisions have been made.