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Newsletter Two

2/11/2011

AN UPDATE More than 60 people have now said they are interested in this project. We have probably missed out on the first block of land I was looking at – someone with ready cash (and willing to pay 25% more than I had negotiated an option for six months ago) has now got an option on it. There are three other potential blocks, one of which is currently on the market and two others which I’m talking to the owners about. I will get an urban planner draw up an initial plan for this block once I get the results of the survey (see later) telling me what sort of sections people want

I need your help! I’ve also been trying to identify possibilities for the redevelopment of existing sections. How do we find two or more adjacent sections (non red zone) where houses are to be demolished, and hence where redevelopment could be a good possibility? Please let me know any ideas you have.

ARE YOU STILL INTERESTED IN THIS PROJECT? Please fill in this survey so I can get a good idea of who is still seriously interested in this project and a better idea of exactly what people want. There are only 12 questions and it should take less than 5 minutes to complete. Your answers do not commit you to anything and will only be visible to me. However, I will put up a summary of the results on our website (www.cooperativesections.co.nz ).

cooperativesections.co.nz

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Newsletter Two

2/11/2011

If you aren’t able (or do not want) to do the online survey, please just reply to the above questions by email. Alternatively, feel free to post your response to: Geoff Butcher, Holmes Road, R.D.2 Christchurch, 7672; or phone me on (03) 3296117 and I’ll record your answers as you explain them to me. Basically I want to know:      

What size section you want What sort of house you think you want Whether you have finance available Whether you want advice on design and the price of affordable building Whether you want subdivision covenants (restrictions on what owners can/ can not do), and if so what sort of covenants What things make you uneasy about being involved in this project

Please fill in this survey as soon as possible so we can all get a clearer idea of where we can go from here.

RESPONSE REQUIRED PLEASE. I need to know whether you have received this email, so please reply by return email, even if only to say that you are no longer interested. Include your phone number if you have not already sent it to me. I know some of you won’t read your emails very regularly, and I suspect that some internet providers have decided to put my email in your junk/ spam mailbox – which many people forget to check for useful stuff that they actually wanted to get. If you aren’t able (or do not want) to do the online survey, please just reply to the above questions by email. Alternatively, feel free to post your response to: Geoff Butcher, Holmes Road, R.D.2 Christchurch, 7672; or phone me on (03) 3296117 and I’ll record your answers as you explain them to me.

LEGAL STRUCTURE AND FINANCING I have talked to lawyers about the best legal structure, taking into account everyone’s need for security, avoiding any tax problems and running the project efficiently. It is their provisional view that the best way is for us to set up a company that owns the land and does the subdivision. This company will write individual contracts with each cooperative member to supply them with a section, and the member will agree to make a series of payments for agreed amounts at specified points (the details are listed here in newsletter one. There will be a final payment, the amount of which is unable to be specified yet in the contract as it depends on the actual costs of the subdivision. People’s money will go into a Trust fund (not directly to the company). Payment will only be made by the Trust to the company or direct to contractors when invoices are provided for work done to

cooperativesections.co.nz

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Newsletter Two

2/11/2011

progress the subdivision, and the trustees are satisfied that the work described has actually been done. All members will elect acceptable trustees to protect the interests of all cooperative members. These trustees will also register a caveat over the title, so that the company cannot do anything to the land without approval of the trustees.

CANCELLING CONTRACTS The essence of this project is that we intending landowners put up the money as it is needed through the project, and that we can’t back out of the project part way through. Nonetheless, some people may decide they can’t, or don’t want, to continue, and we are trying to set up the contracts so that people can pull out, subject to them or the trust finding another buyer to take over their contract. REMEMBER THAT THIS IS A COOPERATIVE. THEREFORE, I WANT TO HEAR WHAT YOU THINK ABOUT ALL OF THIS SO SPREAD THE WORD AND KEEP THINKING OF IDEAS!

Regards, Geoff Butcher.

cooperativesections.co.nz

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Cooperative sections Newsletter 2