Eastbourne development consent lapses
It is a driveway to nowhere, and that is exactly where a controversial development in Eastbourne looks to be going - nowhere.
The residential subdivision at 23 Kowhai St has been vacant since developer Lance James ran into legal trouble in 2009.
The steep 12,500 sqm property features a winding driveway that is unfinished and overgrown. No houses have been built.
The company behind it, Jourdan Developments, is now in the hands of an Auckland-based receiver.
Hutt City Council consent team leader Dan Kellow says he has not heard from Mr James for some time. The subdivision resource consent has lapsed and finishing it will require a new consent. Getting a new consent on the steep site, bordering Butterfly Creek, is likely to be challenging and expensive.
The Hutt News has been unable to locate Mr James, who was jailed in 2010 for tax evasion, but spoke to a friend, Wayne Gillies.
Mr Gillies, who in June last year said Mr James would be finishing the subdivision, said he has no idea what is planned for Kowhai St.
He refused to say what Mr James is doing now.
Brendon Gibson of receivers Kordamentha says his company became involved following the collapse of NZF Money Ltd, which holds a mortgage.
He is aware of the complexity of the site and says his firm is looking at all options.
Kordamentha had dealt with Mr James, who retains an interest in the property via LDJ Developments Ltd.
A search of the Companies Office shows the directors of LDJ Developments Ltd are Toshy Bird Michelle Rapana, of Mt Victoria, and Milo Benjamin Faletolu, of Wainuiomata. The company has been inactive since May 2010 and is being wound up by the Registrar of Companies.
In April 2010, Mr Faletolu was described in the Dominion Post as the foreman for Mr James on the controversial Brooklyn Rise development. That development was blamed for the demise of Lombard Finance, which had lent Mr James $44 million.
Mr Faletolu told the newspaper at that time that he was owed $40,000 in wages from Mr James from Brooklyn Rise. He had also done work on Mr James' Eastbourne house and in lieu of payment had been made a director of the company that owned the property.
That property, which cost an estimated $4 million to build, subsequently went on the market for $1.8 million.
The Hutt News has been unable to contact Mr Faletolu.
There are two neighbouring houses for sale in the Kowhai St and one resident says it will be hard to sell their house with the development unfinished.