Council CEO Theelen departure could wipe out $80 million loss

Analysis.

This investigation, funded by Crux paid subscribers, examines how a $2 billion Australian luxury property development in the centre of Queenstown started life as a “risk free investment” by the Queenstown Lakes District Council. In ten parts we will tell the story of how a large piece of ratepayer owned prime real estate, valued at $42 million in 2017, was turned into a black hole that so far has cost ratepayers over $100 million, increased rates and may not get built. Crux also acknowledges the role of Google’s Pinpoint investigative journalism tools and will publish, in the public interest, each part without a paywall three days after paid subscribers receive this content.

Control can be a tricky thing. It’s great when things are going well but in tough times the buck always stop with the person in control.

There’s no escape.

It was back in 2017 that councillors voted to give QLDC CEO Mike Theelen 100% delegated authority over the Lakeview project.

As the project started to turn to custard with spiralling land preparation costs and continued delays in terms of any construction starting there has been pressure from some councillors to get that authority removed.

However the current mayor, Glyn Lewers, has fought against that move for reasons that are not yet clear.

The original intent of the delegated authority was to give Mr Theelen the necessary speed and agility to negotiate commercial terms. His QLDC Lakeview project manager was to be Paul Speedy, a man who previously had been a ski instructor with no specific experience of dealing with tough, highly experienced international property developers.