Tenants fear camp auction will see them evicted

Thirty long-term residents at a Hamilton motor camp fear they will be forced out before Christmas as the result of a mortgagee sale.

The ageing Hamilton East Camping Ground, covering more than 9000 square metres of land on Cameron Rd, will be auctioned later this month by Bayleys Real Estate.

The camping ground's co-owner, Kenyon Clarke, was recently declared bankrupt after several businesses he co-owned collapsed. Southern Cross Building Society is owed about $3 million on the property.

Mr Clarke accepted the property needed to be sold, but was concerned the camping ground's long-term residents would be evicted – potentially before Christmas.

The November 26 auction is the result of action by lender Southern Cross Building Society.

Mr Clarke believed it was possible new owners could begin work on the site, clearing the cabins and preparing the ground for new housing, within days of the auction.

Some residents have lived at the camping ground for several years, and told the Times they had no other accommodation options.

One man, Henry Rameka, said he might have to sleep in his car.

Pamela CampbellSmith said she had nowhere else to go.

Mr Clarke believed the long-term residents were in a legal "grey area" and were not covered by the Residential Tenancies Act.

Although long-term, residents stayed at the camping ground "week-to-week" based on verbal agreements with its manager, Alen Whitiora, who also lives at the property.

Residents and Mr Whitiora believed they were complying with all rules around residing at the ground, and had not been informed of the mortgagee auction until a Bayleys representative arrived last week to inspect and take photographs of the property.

"It's come as a complete bolt out of the blue," Mr Clarke said. "This whole thing is about the people [the tenants] and protecting their interests and their feelings of security.

"These people are really vulnerable. There's nothing in this for me, I have no financial interest in the property."

Mr Clarke claimed communication from Southern Cross and Bayleys over the future of the site was poor and he was engaging a lawyer. "I feel outraged by this and deeply let down by Southern Cross. The residents can't find anywhere else to stay."

Mr Clarke's concerns were strongly rejected by Bayleys regional manager Stephen Shale, who said he had personally visited the site in the first week of November to advise residents, through Mr Whitiora, that the property was up for sale.

He gave the Times an assurance the tenants would not be hastily removed.

Mr Whitiora confirmed he spoke to Mr Shale at the site but claimed he was never informed of the impending sale.

"There is no direction from Southern Cross or Bayleys that they [tenants] are going to be leaving," Mr Shale said. "And there have been assurances to Kenyon Clarke that is the case. The tenants will be well looked after."

He said a new owner would still have to give tenants "six weeks notice, as if there was a formal tenancy in place". Having existing tenants would be "an advantage" for new owners.

"Everyone needs to relax and let the process take its course," he said.

Mr Shale's comments were echoed by Southern Cross Building Society credit manager Ken Ockenden, who felt any new owner would have to spend some time putting plans in place before actual redevelopment could begin.

Mr Ockenden was adamant the company had followed the appropriate process in relation to the sale of the property, and had a legal right to sell it.

Mr Clarke challenged Southern Cross and Bayleys to insert a special clause in a sale contract to ensure the residents would be protected and given ample notice to leave.

He has pleaded with both companies to give the residents at the camping ground some security over the Christmas period.

A spokesperson for the Building and Housing Department confirmed the tenants' legal rights, given their relatively unusual situation, would need to be tested in a Tenancy Tribunal to establish what Acts covered their situation.

- © Fairfax NZ News