Grasshopper Farms Ltd, owners of The Lakes development at Tauriko, is in receivership.
Company director Graeme Lee today confirmed the company has been placed in receivership by its bank.
'I can't comment on any of this, I'm not allowed to,” says Graeme.
The Lakes.
The receiver Grant Graham was also unable to comment when contacted this morning by SunLive.
The Lakes is major residential development including 2000 residential sections plus 100ha of parks, reserves and 8ha Lake Taurikura, which was last weekend the site of the dragon boats festival.
On March 3, The Lakes is scheduled to host a family fun day and mayoral bike ride.
14 comments
Lakes going under?
Posted on 01-03-2011 14:26 | By Writerman
Can't say I'm surprised. This tacky ill-conceived and even more unwisely located development has been a disaster simply waiting to take its place in the annals (I think that's the right word) of failed entrepreneurship. Caveat Emptor: especially if the vendor wants a deposit before he's built your house. For the doubters out there, simply ask yourself this: what happens at The Puddles EVERY time it rains?
SamIam
Posted on 01-03-2011 21:00 | By SamIam
It's a shame to see a reputable local development company that has been around for many years now succumb to the economy. I was actually quite impressed with a recent drive I took around The Lakes; it's been beautifully landscaped and with its sections surrounded by large reserves of native plantings looks like a picturesque spot to live. @nightbeat check your wises map, Tauriko is spelt with a "k", why would a news article written today use the spelling that was supposedly used last century?
Development purpose
Posted on 01-03-2011 21:59 | By TERMITE
That is sad and thise involved it must be difficult for sure. Now the Council will have to think its plan about the Southern Pipeline as without this development there will be no development fees and building fees to collect so nothing to pay the huge debt caused by all of this. It is a sad day for Ratepayers as well becasue of the huge $500m odd debt burden coming.
Reasons for this ?
Posted on 02-03-2011 07:33 | By POCO O POCO
It is certainly a sad day for Tauranga when a development of this magnitude hits the wall.The current economic climate is only one factor and you would have to ask what part Tauranga City Council played in the demise with its exhorbitant building consent fees etc which has financially hit all developers/builders and home owners alike.The insane overpriced TCC Southern Pipeline Project which really needed to be placed at Tauriko is probably another major factor.Having said all that many felt this part of project was a depressing residential development with a mix of low lying land and steepish sloping sections with industrial development just over the fence.The upshot will have a serious negative flow on effect on the Tauranga economy- TCC slogan "Growth pays for growth" Yeah Right !!
Growth never paid for growth
Posted on 02-03-2011 08:20 | By JSmithington
In the past the good old ratepayers of Tauranga have paid for growth, not building and council fees. That helped developers do so well. Now the council seems to be charging the full fees to the developers who pass them on the the new home owner. So what would Poco Poco prefer? All ratepayers to pay or new house owners to pay? It has to be one or the other. By the way I hear that Lakes ratepayers pay an extra rate to get extra maintenance on their streets and parks. Hope that isn't palmed off onto the rest of us.
CHCH LESSONS OBVIOUS
Posted on 02-03-2011 08:27 | By The Master
The repeated images from CHCH make it clear that "long run" pipelines with raw sewerage make for a huge enviromentall risk on a daily basis and in the event of a natural disaster only add hugely to the mess to clean up afterwards. Why did council not go for the low risk, no cost to ratepayers enviromentally friendly option available to build a satalite treatmetn plant at the lakes, at least some of the commercial land would have been used and it would not have detracted from the overall level and quality of the development as it would have blended in perfectly.
Tauranga is not booming
Posted on 02-03-2011 10:40 | By POCO O POCO
J Smithington ; That wasn't quite what I said and I agree existing TCC ratepayers shouldn't have to meet future TCC infrastructure costs resulting from new developments. That is the subdividers / developers sole liability when the development takes place and then can be included in the section prices at the outset thus lowering their profits.If they price the section too high or paid too much for the land then people won't purchase -some sections have come back 15 to 20% so it just goes to show how inflated prices were & there is still more room to move. The lumping in of TCC building consent fees etc at the construction stage is the wrong place for it and hits the wrong target.Sure someone has to pay sooner or later but let it be said pushing overdevelopment by TCC and Smartgrowth type fantasies only have one ending and it isn't a happy one .
What about CHCH?
Posted on 03-03-2011 13:30 | By newsfan
In light of what's happening in the country at the moment perhaps this land might be very useful for people wanting to leave CHCH and relocate their families and lives. I mean the infrastructure is there. People just need to build.
Newsfan thats great
Posted on 04-03-2011 20:14 | By WIDOWMAKER
That is a fantastic idea I think that there would be great benefits in moving in a as many as possible removeable or portable homes for Christchurch folk to be able to move into, they surely will feel safe in Tauranga.
Never saw that coming...
Posted on 04-03-2011 21:49 | By scott2
A case of killing the goose that lays the golden eggs? Where is council revenue going to come from now ? All that council debt and now no developers left to milk. Was it the developers or was it the council that got too greedy?
HOUSES FOR CHCH
Posted on 05-03-2011 09:07 | By The Master
Widowmaker, I dont think so, when they get there forst rates bill they will go into shock and likely leave in droves becasue CHCH will feel safer. The point is that the EQ in CHCH maybe different to here but they all get ya by surprise and hit ya in the wallet.
What went wrong then
Posted on 05-03-2011 09:25 | By Insider
Without access to the full history and the financial accounts its very hard to say .Sections priced at around $200k would stop the average homeowners showing interest and as one would not probably call this an upmarket development it was always doomed once money tightened up.The fact that the avaricious TCC clowns charged $19000 in building consent and associated fees was the killer blow.
SALE IMINENT
Posted on 06-03-2011 22:34 | By TERMITE
Looks like a deal on the table already for the reciever, should the bank clear its debt burden here and that is all then the developer will be left with all the debt and all the asset would be sold and gone elsewhere. This would allow a huge reduction in the asking price or a absolute windfall for the new owner.
Contrast Receiver and TCC
Posted on 07-03-2011 07:56 | By THE RING MASTER
The receiver knows he has a job to do, GET THE MONEY IN ASAP, TCC just put up the rates to try and cover it all.
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