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20th September 2011

Cooperative sections www.cooperative

Inside this issue: Introduction and update


Current status


Project Size








Useful References


An introduction and an update This is the first in what is intended to be a monthly newsletter. In this newsletter I aim to update interested people on where things are now, and then talk about possible alternative sites, which I ask for EVERYONE to help find. They can be big or small. I then talk about time-lines and what money you will have to put in, and when.

So far we have 20 interested people of the 150 we need who are prepared to sign up for the Halswell project.

Please contact me if you have any comments, or ideas, or know of a suitable piece of land for cooperative development. It might be as small as two or three sections next to each other (outside the red zone) where houses have to be demolished, and where the owners would be interested in getting some cash back and then having a smaller section but one which is part of a more interesting urban plan. Or ... a bigger piece of land

This is a cooperative not just me! I welcome any comments or ideas and hope we can make this work. Regards, Geoff Butcher

Please contact your friends and let them know about the idea.

This is a long term project .. because it requires:     

Finding land; Getting a subdivision consent for sites where residential development is not currently approved; Undertaking the physical works on site; Completing survey and legal work to issue titles; Issue titles

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Where the project is up to...    

I have identified one block of land at Halswell, but there must be many others, and we all need to keep an eye out for possibilities. Different locations and different sizes. It could be simply two or three adjacent properties where houses have to be demolished. I am getting some advice on the best legal structure. I have met with Davie Lovell Smith (planners and engineers) to confirm the likely costs, and make sure there is nothing missing from the budget I have prepared. I am also going to look at the financial feasibility of developing only half the site. which means having to find only 75 people to start with. I need to create some more extensive marketing. I’m not quite sure how to do this, but direct letter drops in the red zone are a possibility, as is some kind of internet marketing campaign. Maybe you could all email people you know in the Christchurch area who either might be interested, or might know others who are interested in the idea generally, and in the Halswell site in particular. We need around 150 people who want to get involved. If there was even more interest then there are adjacent blocks of land that could be available, so there is unlikely to be a problem of ―too many people‖. Once I have at least 50 interested people then I’ll arrange an ―open day‖ at the Halswell block. We can all meet one another and have a look at the block .


Maybe you could all email people you know in the

I originally advertised this project based on a block of land at Halswell. A number of people have said that they like the idea but that they want to live elsewhere. For this reason I think we should try and develop multiple sites. If you have any ideas about possible sites, please email me

Christchurch area who either might be interested, or might know others who are interested in the idea

generally, and in the Halswell site in particular.

Project Size and Timing Large Scale Greenfields with New Zoning. Halswell is a large scale greenfields project on land which is not currently zoned residential. This sort of project has the best potential for low cost sections, but takes the most time –

Small Scale Greenfields with new zoning. A smaller greenfields site will probably take less time for design, and it will be easier to find enough people to make the project work –

Small Scale Redevelopment Existing Zoning. For some people the best option will be redevelopment of existing sections in existing residential zones. This can be done either with one large section, or by combining smaller sections next to each other.

Timing:2 years, once we find enough people.

Timing : 18 months—2 years once we find enough people.

Timing: 6-12 months

We need to identify adjacent sections with houses that are to be demolished, and then redevelop the sections to provide more sections, which of course will be smaller. For example, three 600 m2 sections could provide four 450 m2 sections. 450 m2 is the minimum currently allowed for Residential 1 zoning in Christchurch.

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Possible Timeline

“How much

Once we have identified a site and enough people have signed up to make it a goer, then I think we are looking at:

will it cost and

3 –6 months to develop a plan to submit to council

have to find the

when will we money?”

6 –9 months to get council approval – I know it could take much longer, but I think CERA and council are very keen to cut the process time savagely.


3 months to finalise engineering and get project out to


tender; ( we do this while consent process is underway) 12 – 18 months to develop site. I think it is probable that government can be persuaded to delay the timing for exit from the red zone. Quite apart from anything else, some of the other major developments that are being proposed are only a few ahead of where we are at.

Cashflow One of the biggest questions is:

How much will it cost and when will we have to find the money? On the right I show my current estimate of the costs and timing of cash demands. Some of the costs (mainly the construction) could change significantly. I have been given construction costs suggestions of $40$55,000 per lot and have used $55,000 for these calculations. Council charges should not change.

Canterbury plains from the Port Hills looking out towards Halswell

The end result—stable, comfortable and welcoming .

Probable Cashflow time line Month 0 $1,000. We sign a conditional contract to purchase a block. $1,000 covers preliminary legal, planning, engineering and geotechnical advice. If this advice is that the block is not suitable, then we start again looking for another block. Month 1 $37,000 This covers the purchase of the land ($35,000) and the costs of planning and initial engineering design to get a consent ($2,000). In due course about 40 % of the land cost comes back to us when the council buys back 40 % of the land for the flood retention pond which is shown on the South-West area plan. This is used to pay part of the Council development contributions. Month 9 $6,000 We now have a consent. This money is for final engineering and planning design, and preparation of a construction contract to go out to tender. Month 12 $36,000 Stage 1 of construction Month 15 $36,000 Stage 2 of construction Month 21 $14,000 Survey and legal, and balance of council charges (although the council charge is close to $25,000, two thirds of this should be covered by the cost of the land purchased from us by council and used for flood retention )

Total Cost: $130,000

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cooperative Holmes Road RD2 Christchurch 7672

Cooperate with a like-minded group of people to get a section at a 30% discount to typical current market prices. This both gives you an affordable section and additional equity equal to the difference between the cost of the section and the market price of equivalent sections.

Phone: 0275 397534 E-mail:

While the development will be cooperative, the outcome is intended that you will have an individual title to a section in the same way you would get from the other developments available in Christchurch.

Creating affordable sections through Cooperative Development . Useful References Southwest Area Plan

Greater Christchurch Urban Development Strategy

Housing policies 2011

Newsletter 1  

Cooperative sections describing the concept and introducing us.

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