Red tape slashed in wake of quake

JUST under two years ago, in September, 2010, an earthquake hit Christchurch causing extensive damage. It was followed by the more devastating quake in February, 2011, which accounted for 185 lives.

Most of us would consider Christchurch to be at best an extremely shaky proposition for investing in real estate. Not so Sydney developer John Hayson, who had already invested serious money in a residential sub-division development, Styx Mill Estate, 15 minutes from the city, and another near-city site at Kaiapoi in the Waimakariri District.

As two other major but less significant quakes hit in June and December, 2011, Hayson’s company Silverstream Estates took on the task of meeting the needs of dislocated Kiwis.

In doing so, and working closely with the New Zealand government, developer and administration have provided a model for slashing the red tape that has effectively tied the hands of NSW developers helping create the housing shortages that have made Sydney housing prices among the highest in the world.

Think of the challenge. The CBD was extensively damaged and still requires major reconstruction of infrastructure and buildings.

Tens of thousands of homes have been so extensively damaged that they have been placed in a “Red Zone” meaning that that underlying land is unsuitable for rebuilding.

When the underlying land is “Red Zoned”, the government offers to purchase the land and buildings at the most recent government valuation.

Those residents affected must then build or purchase another home elsewhere. The New Zealand government responded by setting up the Canterbury Earthquake Recovery (CERA pronounced Sarah) Authority.

Gerry Brownlee, Transport Minister and Leader of the House, was appointed Minister responsible for CERA and theEarthquake Commission (EQC).

He moved quickly to make available new land to meet the anticipated needs of residents needing to be re-housed.

Brownlee recognised the roadblocks to development and intelligently dealt with them without reducing the necessary safeguards required before permits could be issued in such a region.

Here’s how. CERA brought together the environmental oversight body, the regional council and the developer and all parties were required to sign an agreement to work together co-operatively to produce titled land to accommodate the displaced residents.

Kaiapoi development is the first greenfield site fast-tracked through this process, although Hayson had spent years having the land rezoned for housing.

Importantly, council agreed to speed up the approval process and the developer agreed to provide a minimum number of lots within a certain time and at certain prices.

To achieve lower price points, Hayson reduced the size of some lots from 650 to 1000 sqm down to 300 to 600sqm.

In new housing estates the building covenants require a certain size home to be built on the land. So the larger the block the larger the home required to be built which means the land is more expensive and so is the house.

The smaller lots suit older people with restricted budgets, particularly, and those who don’t want to maintain gardens. The subdivision has extensive open space and an adjacent stream with 2.8 kilometers of walkways.

The fast-tracked process allowed the developer to obtain approvals on a needs basis so they could commence earthworks while the sewer and storm water services were being designed and then other services as required.

According to Hayson, the integrity of the system has been adhered to. The design and approval process has run in parallel with the works rather than being completed before works commenced.

All work was undertaken with the full knowledge, support and approval of the council and in accordance with all the relevant standards and this was the reason the company was able to achieve its objective ahead of schedule.

The council appointed a special liaison officer, weekly meetings were held, almost immediate inspections were provided and all work was constantly checked to it could be signed-off without delay on completion.

The development has delivered the first 162 titled lots in five months, which included all sub division design and consents from a cold start excluding rezoning.

Much of the second stage has been completed, and infrastructure installed for further stages, 10 months earlier than promised.

Work that would normally take about years to complete has been knocked over by multiple teams of workers working in different areas of the development to speed up the construction process.

This means that residents can move in to their homes much faster.

Said Hayson: “It has taken an earthquake to create an environment where council and private enterprise have worked co operatively together to create a positive outcome for all parties.

“It is amazing to experience the feeling where a council is not road blocking development but is working with you and it is so much easier for all concerned.

“The meetings are constructive and everybody is much happier and productive. If this could translate into co-operation with all government departments without a disaster, there is no limit to what can be achieved and the economic boost to an economy.”

Prime Minister John Key joined Brownlee and Conservation and Labour Minister Kate Wilkinson at the launch of Stage 1 in June.

It’s not all atruism of course – Hayson stands to profit from his efforts. The cost of rebuilding Christchurch has been estimated at up to $30 billion and will require 25,000 additional construction workers. Accommodation in the near term will be in short supply for workers as well as residents seeking new homes.

But as a blueprint for solving the great Australian housing shortage, state governments should seize upon this disaster response and run with it.

Key to open Kaiapoi development

PRIME MINISTER TO OPEN FAST TRACKED KAIAPOI DEVELOPMENT The first greenfields development approved under the Canterbury Earthquake Recovery Act will be opened today by Prime Minister John Key when he joins over 200 invited guests to mark the official opening of Silverstream Estates in Kaiapoi. The Government approved the development, which will include up to 1115 sections, using its earthquake powers in November 2011. Since then, infrastructure development and construction has commenced, site preparation for the initial stages is well under way, and the first stage of the new community has all but sold out. Section titles for Stage One are expected in the next few weeks, with purchasers able to commence building on site now. Silverstream Estates developers John Hayson and Fred Rahme say the speed of the development to date is testament to the focus and commitment of all the parties involved, including CERA, the Wiamakariri District Council and Environment Canterbury. “In just five months, we have gone from what were quite literally greenfields to an emerging community, ready for new residents to make a start on a new home,” says John Hayson. “This wouldn’t be possible without the dedication of all the parties who have made every effort to make this possible – working closely together at every stage to achieve a great outcome for Canterbury.” “All the usual processes have been followed and requirements met – but in a fast-tracked framework. The way everyone has worked together with a great deal of goodwill has made this a shining example of what can be achieved when people are working together for the good of the community.” Today’s official opening will take place on Silverstream Boulevard, at the bridge over Silverstream. The waterway will form an important part of the community, with stone beaches and a wooden jetty enabling residents to enjoy the streamside environment, and a network of pathways and a fitness track running along its banks. The new community will also feature a large village green, dedicated play areas and pocket parks, as well as a convenience shopping area and office space. Fred Rahme says although the development has taken place at an accelerated pace, a key part of the process has been engineering the land to ensure every section meets TC1 or TC2 earthquake standards. “Every section we sell will come with its own individual geotechnical assessment, produced at our cost. And we will guarantee every section will have TC1 or TC2 compliance – because we are comprehensively engineering and preparing each site to achieve this standard,” says Fred Rahme. “We believe this is the only way to provide certainty to all our purchasers about their building costs – we are taking the unknown out of it.” “We are setting the benchmark that home owners deserve. After all these months of uncertainty, they deserve nothing less than a guarantee of safe land to build on and costs they can plan for as they start their new future.” Many of the new residents now have home plans approved by the developer ready for Council submission and a large number of homes are expected to be completed by Christmas. “This is a great start for our new residents, for Kaiapoi, and the wider region – and a great example of what can be achieved for Christchurch,” says John Hayson. “We’d like to sincerely thank everyone involved – from the Government, ECAN, CERA and the Council, to everyone who has worked tirelessly on the development to get it to this stage.”