$2 billion Lakeview drama finally plays out in public

Analysis

In a surprising and dramatic 35 minutes today eight years of secrecy and confusion was stripped away from the QLDC’s $2 billion Lakeview development with the Australian developers clearly in control.

Dean Rzechta of the Melbourne developers Ninety Four Feet gave a confident and relatively detailed account of the challenges the project has encountered with even conservative councillors like Lisa Guy pointing out that QLDC needed to do a better job of communicating with the community.

94 Feet’s Dean Rzechta - an accomplished performance today - but “a deal’s a deal” and there’s no room for QLDC to renegotiate the Lakeview contract. They also have up to 20 years to pay for the 2017 value of the land.

The key points to emerge from today’s council workshop are:

• Ninety Four Feet have managed to secure financing from Merricks Capital after the exit of 25% NZ partner Centuria earlier this year.

• There are still some differences between the developers and QLDC to be sorted out, but construction may start before the end of this year.

• Ninety Four Feet have brought construction company CMP on board for the project build.

• There’s still uncertainty over how much of the project, if any, will deliver “affordable housing” with the developers focus being on “yield.”

• Dean Rzechta has told Crux after the workshop that there’s no question of the land value being adjusted from 2019 value ($42 million) to present day value (over $80 million) saying “a deal’s a deal.”

The culture shift by QLDC from secrecy to today’s more open workshop appears connected to the intervention last week of Local Government Minister Simon Watt who asked the Department of Internal Affairs (DIA) to obtain assurances that the eight year old project, with zero construction, was being progressed efficiently. In a statement to Crux the DIA confirmed that they were in ongoing contact with QLDC.

QLDC CEO Mike Theelen did make one key statement at today’s workshop: “Anyone who thought this project would run in years, rather than decades, is being foolish”

CMP’s Contract Manager Dom Fleischl told the workshop that they could manage challenges around finding enough Lakeview sub-contractors by “looking after them and paying them on time - something other construction firms seem to have trouble with.”

With both council CEO Mike Theelen and mayor Glyn Lewers keeping an uncharacteristically low profile during the short 35 minute Lakeview session councillors focused once again on what many of them see as failures in transparency, effectiveness and openness by the council’s communications and engagement team, lead by Corporate Services boss Meaghan Miller.

Council comms and governance boss Meaghan Miller. She is often openly hostile to media questions and has been blamed by the Chief Ombudsman, with her team, of failing to comply with legal official information (LGOIMA) requirements. She refused to comment to Crux today as did CEO Mike Theelen.

Mayor Glyn Lewers barely spoke during today’s workshop in instead releasing a detailed statement on Facebook within minutes of the workshop finishing, potentially prepared with the assistance of his external mayoral election campaign PR advisor.

Even Lakeview Project Manager Paul Speedy was willing to talk with Crux today after many years of relative silence.

He and Dean Rzechta briefed councillors before there was 20 minutes of questions from the elected members.

Many questions remain around when construction will eventually start and what the actual level of pre-sales are for the luxury development. Mayor Lewers issued a lengthy statement on social media within minutes of the workshop being complete including this statement that appeared to be pre-prepared - potentially by his external mayoral election campaign PR manager.

Crux has highlighted that if QLDC withdrew from the Lakeview deal they could sell the land at the 2025 value and reduce ratepayers losses.

“Debating whether the Lakeview project should or should not go ahead does not achieve much. While I wasn’t involved in those original decisions, as a member of Council, I now have a responsibility to act in good faith and within the framework that’s been set.”

“Lakeview Te Taumata is set to become one of the most significant projects Queenstown has ever seen. In the next 10-15 years, the 10-ha site off Man Street will transform into a new neighbourhood, featuring apartments, hotels, retail and dining spaces, and a possible hot pool facility.”

“Council still owns the land.”

“Walking away from this negotiated deal without valid legal reasons would be more than risky, it would be expensive. Exiting now means facing, penalties, and a long list of legal expenses.”

“The Council is obligated to proceed according to the terms of the existing contract to avoid unnecessary financial loss.”

Source: Mayor Glyn Lewers - Facebook August 19, 2025.

Crux has covered in great detail the fact that the QLDC deal locks the value of the land in at 2017/2019 value of around $42 million and makes no account for the increase in the value of the land over the intervening eight years. Crux has also estimated the total spend by QLDC to be far greater than the claimed $75 million due to the importance of the $128 million stage 1 arterial “road to nowhere” and other capital works that have been built with the massive Lakeview development clearly in mind.

The ratepayer cost was originally supposed to be $19 million.

Crux was able to speak with Dean Rzechta after the workshop and he was clear that there was no room to renegotiate the value of the land.

“A deal’s a deal” he said, with this comment also covering the fact that QLDC ratepayers are far from happy with the construction delays, the extended time for the land purchase to be paid for and the disappearing council profit margin.

Mr Rzechta’s urbane, polite and confident approach suggested today that in the Lakeview deal the Australian developers have always had the upper hand.