Free to read: Lakeview developers given four more years by QLDC

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.

In 2022 the QLDC’s $2 billion Lakeview project was granted fast track resource consent in a move that seemed designed to prevent public consultation, as had been promised to councillors by council CEO Mike Theelen.

The only problem with this consent was that it required the council’s Australian developers, 94 Feet, to get on with the job. As we’ve reported - that has not happened.

What has happened, behind closed doors in January this year, is an unusual four year extension granted by QLDC - in some ways to 94 Feet but in some ways to itself.

Many council and Lakeview observers had assumed that if the Aussies did not get on with the job then the council could cut up the contract and sell the Lakeview land for a large chunk of cash - maybe around $80 million or more.

But that’s far from the actual situation as Crux has discovered this week.