Generus Group’s Ranfurly Village must pay Auckland Council an additional $650,000

Private pension company Ranfurly Village must pay Auckland Council an additional $650,000 in development contributions for three buildings it developed on the former Three Kings war veterans site, bringing the total bill to $1.1 million.

The council, represented by Alan Galbraith QC, sued the company owned by Graham Wilkinson, whose Generus Group owns a village in Parnell, two in Mt Maunganui and two in Christchurch.

The council charged development fees on new developments to help cover the costs of infrastructure to support Auckland’s growth, including for transport, sidewalks, roads, intersections, parks, sports fields, drainage, stormwater and community facilities.

The decision by Auckland High Court Judge Laura O’Gorman said the council wanted to recover debts for bills issued in 2020 and 2021, with money owed on three village blocks.

Ranfurly Village, represented by Russell Bartlett, QC, had already paid $499,000, but the council said the company was owed a further $650,000 as contributions totaled more than $1 million.

Ranfurly had opposed that higher amount when the project was built in phases from 2014 to 2021.

Around 2011, total contributions owed were estimated at $1.3 million, but Ranfurly claimed that $499,000 was all that should be owed and that it had paid that amount in full.

The company cited development contributions paid by Ryman Healthcare after it objected to higher fees being paid in 2016 for its Possum Bourne village in Pukekohe.

Ryman said the village had several unique features that significantly reduced demand for community facilities compared to development contribution policies. The evidence included research surveys on villagers’ demand.

So instead of having to pay $2.3 million in costs for that village, Ryman only had to pay $606,808, which was a 74 percent reduction.

But the judge decided the three council invoices sent to Ranfurly Village were fully payable.

She said the council was also entitled to the costs.

Asked about today’s decision, Wilkinson said Ranfurly had cited the Ryman situation where the village of Pukekohe was not using its full level of facilities, so the council reduced the charge.

The council reduced the amount of development contributions by 79 percent for all retirement villages from 2019, he said.

“Based on that new policy, we argued that we should have only paid the lower amount for the whole of Ranfurly, because the whole of Ranfurly was also only using the same lower level of service and the new policy and rates reflected this.

“We relied on a council clause that said the council was obliged to reassess contributions if there was a development over several years with a different policy,” Wilkinson said today.

But despite all of Ranfurly using a lower level of service, the judge decided the council could charge the high rate before 2019 and then the lower rate after 2019 because that was the council’s policy, he said.

Last Herald Reports have told how the Generus villages are located on properties that are either wholly owned or in partnership with charities and iwi.

The Ranfurly War Veterans’ Trust sold a 100-year lease of 2.7 hectares to Wilkinson’s company.

The village has a 60-bed hospital and will have 192 apartments upon completion, which in 2019 was expected to be in 2021.

Ranfurly House has a restaurant, bar, library and communal areas on the ground floor. It also has a theater and offices of the Ranfurly Veterans’ Trust, and areas where veterans’ organizations can operate.

Anne Gibson was the Herald’s Real estate editor for 24 years, has written books and reported on properties at home and abroad.