Everyone knows the two local Councils stumped up with $15 million to purchase Te Tumu land from developers to stop any subdivision.
Agreement was completed in 2006 and developers have, it seems, sole option to repurchase by 2026 so everyone else is shut out. The cost of holding this land-banking lemon doubles every 10 years so if an interest rate of 7% is applied over the whole term, whether it be interest or ratepayers stumping up increased rates or the debt capitalised, (like Route K) by 2016 the debt will be $30 million and by 2026 the debt will be $60 million (quadrupled).
This is the liability Councils will have incurred and loss to local ratepayers will be that amount less whatever can be salvaged from sale of 180+ hectares of swampy marginal Papamoa farmland.Not a pretty smart strategic purchase at all in any category – possibly ranking as one of the worst deals ever done by a Tauranga Council!
Both TCC and Western Bay ratepayers should be outraged if they are ordered to bail out this fiscal madness. Perhaps someone can explain what the silver lining might be as this landbanking venture never had and never will have any merit, costing ratepayers megamillions.

R Paterson, Matapihi.