REPORT HUTT CITY COUNCIL. Preliminary Land Development Assessment 8 Harold Grove, Stokes Valley. Report prepared for: HUTT CITY COUNCIL

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1 REPORT HUTT CITY COUNCIL Preliminary Land Development Assessment 8 Harold Grove, Stokes Valley Report prepared for: HUTT CITY COUNCIL Report prepared by: TONKIN & TAYLOR LTD Distribution: HUTT CITY COUNCIL TONKIN & TAYLOR LTD (FILE) 2 copies 1 copy November 2009 T&T Ref:

2 Table of contents 1 Introduction Background Site Details 1 2 Preliminary Geotechnical Investigation 1 3 Indicative Development Plan 2 4 Site Valuation 3 5 Service Infrastructure 4 6 Preliminary Cost Assessment Subdivision consenting and survey costs Subdivision development/construction costs 5 7 Gross Return Assessment 5 8 District Plan Assessment Introduction Zoning Requirements Compliance with the District Plan 6 9 Conclusion and Recommendation 7 10 Applicability 7 Appendix A: Appendix B: Appendix C: Appendix D: Preliminary Geotechnical Report Draft Indicative Development Plan DTZ Market Estimate Preliminary Schedule of Development/Construction Costs Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

3 Executive summary The preliminary assessments undertaken in this report are to provide Hutt City Council (HCC) with a reasonable level of certainty as to whether or not the residential development of the site at 8 Harold Grove is feasible and financially viable. A HCC stormwater pipe traverses the property and any subdivision of the property would need to protect its alignment and access to it. In addition, a small portion of a shed at 9 Harold Grove may encroach onto the site. This would need to be confirmed by survey and a boundary adjustment could be considered.the overall findings of the report are that this site has potential to be subdivided to create one lot for sale at a modest return, with a balance lot containing the stormwater pipe to remain in the ownership of HCC. An Indicative Development Plan has been drafted to illustrate this concept (refer Appendix B). Alternatively the site could be sold as is after an easement has been created over the stormwater pipe. The effect of this would be to reduce the consenting and survey costs. A third option was also considered. This was the concept of undertaking a boundary adjustment to bring a small area of the HCC land behind the site into the site. A 3- lot (including a balance lot to remain with HCC) complying subdivision could then take place. However, this option was not pursued as it was considered that a lot at the southern/up-hill end of the site would be expensive to develop in this low value area, and would devalue the front site and reduce its width making it less able to accommodate a range of dwellings. In comparison, the proposed Indicative Development Plan allows a developer/lot owner more ease to build a modest dwelling that is easily compliant with site coverage and sunlight access recession plane standards for the General Residential Activity Area. Experience shows that this makes lots more attractive to the market and therefore more readily saleable.the Gross Return assessment of the subdivision illustrated by the Indicative Development Plan is summarised in the below table: Potential number of lots Estimated sale price $ (see Section 4) Consenting & survey costs $ (see Section 6.1) Subdivision development/construction costs $ (see Section 6.2) Gross return 1 $ 1 $78,500 $18,441 $15,800 $44,259 1 The cost assessment provides a gross return and does not cover sale costs, tax or GST, any statutory processes with respect to the Reserves Act 1977 or Plan Changes The site is currently largely zoned General Recreation Activity Area, with a small strip of General Residential Activity Area. A Plan Change to the District Plan to change the portion of the site intended for development, being proposed lot 1, would be required. This would be a publicly notified process and a successful outcome cannot be guaranteed. Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

4 The Indicative Development Plan has been prepared on the assumption that this Plan Change can be successfully achieved. Should HCC wish to sell the site without undertaking any subdivision, it would also first need to be rezoned to General Residential Activity Area. The Indicative Development Plan has also been prepared on the premise of providing a lot size and subdivision design in keeping with the Controlled Activity provisions of the District Plan for the General Activity Residential Activity Area If the Indicative Development Plan is further progressed, it is recommended that HCC s Subdivision Engineer and Subdivision Consents Planner be consulted in that process. This helps to confirm (or otherwise) consent category, notification/affected party status, get any design inputs early and minimise any surprises at later stages. In summary, this site has potential to be subdivided to create one lot for sale at a modest return, with a balance lot containing the existing stormwater pipe to remain with HCC. Alternatively it could be sold as is after an easement has been created over the stormwater pipe. We recommend that the site be considered for further detailed development of one of these concepts. We also recommend that prior to Council committing any significant funding to develop this site, a revision of costs and returns be undertaken. This is suggested due to the uncertainty and volatility in the economy. Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

5 1 1 Introduction 1.1 Background Hutt City Council (HCC) is undertaking a series of investigations into its land holdings, directed at better utilisation or disposal for non-contributing land parcels. Tonkin & Taylor Limited (T&T) has been engaged by HCC to undertake a Preliminary Land Development Assessment for the site at 8 Harold Grove, Stokes Valley. The preliminary assessments undertaken in this report are to provide HCC with a reasonable level of certainty as to whether or not the residential development of the site is feasible, financially viable and to the overall benefit of Council. The assessments are based on an indicative development concept, rather than detailed design. An Indicative Development Plan has been prepared with a view to identify a subdivision concept that would likely meet the requirements of the District Plan Controlled Activity standards for subdivision (except with respect to earthworks). We note that this site is under review only and is not surplus to HCC requirements. 1.2 Site Details 8 Harold Grove Legal Description: Lot 6 DP and Lot 93 DP Site (excerpt from City of Lower Hutt District Plan) The site is owned in two fee simple Certificates of Title (CTs) by HCC Area: 1431m 2 (being1,286m 2 in CT WN17C/373 and 145m 2 in CT WN17C/381) 2 Preliminary Geotechnical Investigation T&T has undertaken a preliminary geotechnical stability assessment at the site to determine geotechnical constraints to residential development. The full Report is provided at Appendix A. The table below summarises the findings of our geotechnical assessment for the site. This includes recommendations on the most appropriate foundation preparation work to develop 10x15m building platforms suitable for timber framed construction in accordance with NZS 3604:1999. Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

6 2 Geotechnical Summary Information Geotechnical suitability classification (refer Figure 1 at Appendix A) Approximate total area available (m 2 ) Typical soil profile Most appropriate remedial solution Additional foundation preparation cost per lot 1 A/B m fill over rock Timber piles to rock $18,000 B m colluvium over rock on 25 degree slope C N/A 1 m uncontrolled fill over 3m alluvial/colluvium gully infill Excavate building platform and install low (1.5m high) retaining wall and batter slope to stabilise upslope cut No build zone-limit to landscaping areas $20,000 1 Foundation preparation costs for a 10x15m building platform on each lot. These are costs over and above the costs of standard NZS3604 type shallow foundations and exclude clearance of vegetation, formation of access roads etc. N/A 3 Indicative Development Plan Based upon the preliminary geotechnical assessment, and design and cost input from Cuttriss Consultants Ltd (Cuttriss), a draft Indicative Development Plan has been prepared and is provided at Appendix B. The majority of the site (being the 1,286m 2 in CT WN17C/373) is presently zoned General Recreation by the City of Lower Hutt District Plan (the District Plan). The remainder of the site being the 145m 2 in CT WN17C/381 that makes up a narrow strip along the western side of the site is zoned General Residential. The Indicative Development Plan is based upon the entire area of the proposed subdivision being rezoned to General Residential. The Indicative Development Plan is intended to be indicative only, to provide a basis for deciding whether residential development of the site may be feasible, financially viable and to the overall benefit of Council. No detailed design has been undertaken. The Indicative Development Plan proposes a 2 -lot subdivision. Lot 1 would be 992m 2 in size and would be made available for sale as a fee simple residential lot. The balance lot would remain in the ownership of HCC. The reason for leaving the balance area in the ownership of HCC is that it hosts a stormwater pipe. The need to operate and maintain this pipe, including the need for vehicle access, would restrict building in its vicinity. Therefore, the area to the west of proposed lot 1 has been left in HCC ownership on the Indicative Development Plan. This provides maximum flexibility with respect to future access to the area of the stormwater pipe and culvert and to the HCC land to the rear of the site. The rear of this balance lot has a no build area due to the soil profile. Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

7 3 It appears that a shed on the property to the west, 9 Harold Grove, may encroach onto the site. This would need to be confirmed by survey and a boundary adjustment could be considered should HCC desire. Alternative Scenario 3-lot subdivision including a balance lot in HCC ownership The proposed Indicative Development Plan is one which recognises and gives due regard to the natural and physical characteristics of the land. An alternative scenario considered was a boundary adjustment to bring a small area of the HCC land behind the site into the site. A 3- lot (including balance lot) complying subdivision could then take place. However, this option was not pursued as Cuttriss were of the view that a lot at the southern/up-hill end of the site would be expensive to develop in this low value area, and would devalue the front site and reduce its width making it less able to accommodate a range of dwellings. In comparison, the proposed Indicative Development Plan allows a developer/lot owner more ease to build a modest dwelling that is easily compliant with site coverage and sunlight access recession plane standards for the General Residential Activity Area. In Cuttriss experience this makes the lots more attractive to the market and therefore more readily saleable. Alternative Scenario no subdivision Another alternative is to simply have an easement surveyed and placed over the stormwater pipe wide enough to allow vehicle access and to sell the two Titles. 4 Site Valuation DTZ have undertaken a desk-top market assessment to provide an indicative average section price for the allotment proposed by the Indicative Development Plan. Based on sales within the location, DTZ have assessed a likely selling range of the section to be between $95,000 - $100, 000. A full copy of the DTZ market estimate is provided at Appendix C. This estimate assumes no significant geotechnical issues. However, as can be seen from the T&T preliminary geotechnical stability assessment provided at Appendix A, the property is anticipated to require additional foundation preparation costs of between $18,000 - $20,000. Generally in a soft market DTZ would expect purchasers to discount the price they are prepared to pay roughly in line with the anticipated costs of any additional foundation costs. In a buoyant market or in locations where land is in short supply, they would expect purchasers to absorb some of this cost into the house cost and therefore a lower discount on the land would be warranted. Therefore, for the purposes of this assessment we have deducted the average additional foundation costs of $19,000 from the estimated average selling price of the section of $97,500. The resultant estimated total selling price of the subdivided section is $78,500. The current economic climate brings an element of uncertainty to the future demand for sections. We recommend HCC carefully monitor the situation in respect of returns and costs. Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

8 4 5 Service Infrastructure The site is within a fully-serviced residential area. In general, service connections are available in close proximity. Stormwater Wastewater Water supply Other matters No significant constraints No significant constraints No significant constraints No significant constraints 6 Preliminary Cost Assessment 6.1 Subdivision consenting and survey costs The following are preliminary cost estimates for a straight-forward, non-notified subdivision with no significant service constraints. Cuttriss have provided much of this input. The costs assume that the area of the proposed subdivision has been rezoned to General Residential under the District Plan. Cost (GST exclusive) Survey & Consenting Professional Fees $5,000 - $6, 000 Geotechnical Report $2,000 Council Processing Fees (assumes a non-notified process) $1,500 plus engineering fees of $474 (being 3% of construction costs) Council Development Levies ($2,600 per lot) $2,600 Council Reserve Contributions ( %of land value) $4,317 (5.5% of the estimated land value) Legal Fees ($750 per lot) $750 Land Information New Zealand Fees $800 Total $18,441 These estimates do not include the cost of any statutory processes with respect to the Reserves Act 1977 and Plan Changes. Council fees for processing the resource consent application for subdivision vary considerably according to the scale of the subdivision and the planning process (whether notified or not). Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

9 5 6.2 Subdivision development/construction costs A schedule of development costs is provided at Appendix D. The cost estimate is preliminary only, based on general development costs to achieve the draft Indicative Development Plan prepared for the site. Development costs exclude telecommunication and power. The estimated development costs are $15, Gross Return Assessment The following table provides an estimated gross return. Potential number of lots Estimated sale price $ (see Section 4) Consenting & survey costs $ (see Section 6.1) Subdivision development/construction costs $ (see Section 6.2) Gross return 1 $ 1 $78,500 $18,441 $15,800 $44,259 1 The cost assessment provides a gross return and does not cover sale costs, tax or GST, any statutory processes with respect to the Reserves Act 1977 or Plan Changes The alternative scenario of simply creating an easement over the stormwater pipe and selling the two Titles as they exist is likely to provide a greater return as there would be significantly less consenting, survey and construction costs. 8 District Plan Assessment 8.1 Introduction The purpose of the District Plan assessment is to identify any matters that need to be considered as issues or constraints to the planning process to subdivide and develop the site for residential use. In terms of planning process, the assessment focuses on the following two matters: 1. Whether a Plan Change would be required to rezone the land for residential use; and 2. Whether there are any matters of non-compliance with the District Plan standards at the time of resource consent for subdivision. At this early stage of preliminary investigation, it should be noted that the outcome of the Plan Change and resource consent processes cannot be guaranteed. The views of neighbours and the public will need to be taken into account by the Council s Planning Department/Committee. Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

10 6 In addition to the planning matters assessed below, a likely issue for any Plan Change will be the effect of the loss of reserve land (albeit unclassified) balanced against the benefits to be derived from the development of part of the reserve. The assessment below is provided to give an early indication of the likely planning process and District Plan compliance issues. We understand that HCC will, where required, undertake any statutory processes with respect to the Reserves Act Zoning Requirements Current District Plan Zoning General Recreation Activity Area 1,286m 2 (with a small strip of General Residential Activity Area 145m 2 ) Recommended District Plan Zoning Part General Recreation Activity Area / Part General Residential Activity Area Plan Change required? Yes A General Residential Activity Area is considered appropriate for that portion of the site intended for development, being proposed lot 1. The surrounding residential areas are zoned General Residential. It is recommended that the balance lot should remain with its current zoning being largely General Recreation and partially General Residential. A Plan Change to the District Plan would be required to undertake the desired rezoning. This would be a publicly notified process and a successful outcome cannot be guaranteed. Should HCC wish to sell the site without undertaking any subdivision, it would first need to be rezoned to General Residential. 8.3 Compliance with the District Plan The Indicative Development Plan has been prepared on the assumption that the area of the proposed subdivision can be successfully rezoned to General Residential in the District Plan. The Indicative Development Plan has been prepared on the premise of providing a lot size and subdivision design in keeping with the Controlled Activity provisions of the District Plan for the General Activity Residential Activity Area. If the Indicative Development Plan is further progressed, it is recommended that HCC s Subdivision Engineer and Subdivision Consents Planner be consulted in that process. This helps to confirm (or otherwise) consent category, notification/affected party status, get any design inputs early and minimise any surprises at later stages. Preliminary Land Development Assessment - 8 Harold Grove, Stokes Valley T&T Ref HUTT CITY COUNCIL November 2009

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12 Appendix A: Preliminary Geotechnical Report

13 REPORT HUTT CITY COUNCIL Preliminary Geotechnical Suitability Assessment Between 7 and 9 Harold Grove, Stokes Valley Report prepared for: HUTT CITY COUNCIL Report prepared by: TONKIN & TAYLOR LTD Distribution: HUTT CITY COUNCIL TONKIN & TAYLOR LTD (FILE) 1 copy 1 copy August 2009/Rev A T&T Ref:

14 Table of contents 1 Introduction General Scope of Work 2 2 Geotechnical Assessment, Harold Grove (Site NW5) Site Description Site Geology and Soil Profile Geotechnical Considerations Site Geotechnical Summary Information 4 3 Applicability 5 Appendix A: Scala Penetrometer Logs Preliminary Geotechnical Suitability Assessment T&T Ref HUTT CITY COUNCIL August 2009

15 1 Executive summary Tonkin and Taylor Ltd (T&T) has been engaged by Hutt City Council (HCC) to undertake an Urban Development and Planning Assessment for strategic sites within the Northern Ward of Hutt City. T&T has included a preliminary geotechnical assessment at each of these proposed sites to determine geotechnical constraints to residential development. We note that these sites are under review only and are not surplus to HCC requirements. The table below summarises the findings of our geotechnical assessment for the site at Harold Grove, Stokes Valley, (Site ref NW5). Geotechnical Summary Information Site reference Geotechnical suitability classification (refer Figure 1) 1 Approximate total area available (m 2 ) Typical soil profile Most appropriate remedial solution Additional foundation preparation cost per lot 2 Harold Grove (Site NW5) A/B m fill over rock Timber piles to rock $18,000 B m colluvium over rock on 25 degree slope Excavate building platform and install low (1.5m high) retaining wall and batter slope to stabilise upslope cut $20,000 1This is the most suitable land for residential development at each site, refer Table 1 for full breakdown of available areas. 2 Foundation preparation costs for a 10x15m building platform on each lot. These are costs over and above the costs of standard NZS3604 type shallow foundations and exclude clearance of vegetation, formation of access roads etc. Preliminary Geotechnical Suitability Assessment T&T Ref HUTT CITY COUNCIL August 2009

16 2 1 Introduction 1.1 General Tonkin and Taylor Ltd (T&T) has been engaged by Hutt City Council (HCC) to undertake an Urban Development and Planning Assessment for strategic sites within the Northern Ward of Hutt City. We note that these sites are under review only and are not surplus to HCC requirements. A key development consideration in this assessment is the potential geotechnical constraints on each site. T&T has undertaken an initial geotechnical investigation at each of the proposed sites. This report summarises the findings of our geotechnical investigation for the site at between 7 & 9 Harold Grove, Stokes Valley (Site NW3). The conditions of our engagement are detailed in our proposal dated June Scope of Work The scope of work for the geotechnical assessment includes: Desk top study Review of 1:50,000 geological map of the area and HCC historic aerial photographs. Review of topographical maps. Liaison with service providers to determine if any services extend through the site. Liaison with greater Wellington Regional Council to check historic contamination records (SLUR register) Site Investigation (refer Figure 1 for investigation locations) 4 Scala penetrometer probes 4 investigation pits Geological mapping Analysis and reporting Review of all subsurface investigation results Preparation of factual summary report and zoning maps of foundation suitability. 2 Geotechnical Assessment, Between 7 & 9 Harold Grove (Site NW5) The soil profile and depth to rock is inferred from 4 Scala penetrometer probes and 4 excavated investigation pits. It must be appreciated that the subsurface conditions could vary away from the test locations. Preliminary Geotechnical Suitability Assessment T&T Ref HUTT CITY COUNCIL August 2009

17 3 2.1 Site Description Site NW5 is located at the south-western end of Harold Grove, Stokes Valley (between numbers 7 and 9). The site includes the titles Lot 6 DP49500, CT WN17C/373 and Lot 93 DP (an existing 4m wide strip of land extending between Harold Grove and the recreational reserve to the south east of the site). Existing dwellings are located on neighbouring properties to the north-west and east of the site. Based on aerial photographs, a shed structure owned by the northern property owner appears to be encroaching onto the site. HCC records indicate that there is an existing 300mm diameter stormwater pipe trending north-east south-west across the western portion of the site. The north-western half of the site is generally flat with grass cover (refer B Figure 1). The southern corner of the site slopes up towards Clapham Grove at approximately degrees and is covered in regenerating bush (refer A/B Figure 1). The south-western corner of the site slopes down to an existing gully (at approximately 25 degrees) which is drained with a stormwater culvert (refer C figure 1). Historic aerial photographs show that Harold Grove is situated on an infilled gully. We envisage that (from a site walkover, testpits and aerial photographs) the gully has been levelled (infilled) as part of the development of the Harold Grove carriageway and subdivision between 1972 and The steep rise from this end of the site up to Harold Grove is inferred to be a fill embankment marking the southern extent of the gully infilling. The change in elevation is 4-5m. The fill placed in the mid 1970 s has interrupted a natural overland drainage path along the existing gully. Drainage of the gully to the south of the site is now provided by a stormwater culvert and pipe leading down Harold Grove. If the stormwater culvert is not maintained there is a risk of ponding in the gully to the south of the site. Under extreme events and over time this could cause flooding and or instability in the existing fill batter. The site is not registered on the Greater Wellington Regional Council (GWRC) Selected Land Use Register (SLUR). The SLUR is a record of all documentation held by the GWRC regarding contaminated materials and uncontrolled filling. The extent of the proposed site (Site NW5) is shown on Figure 1 attached. 2.2 Site Geology and Soil Profile The geotechnical investigation at Site NW5 comprised 4 Scala penetrometer probes (typically to 3.5m depth), 4 investigation pits to 3m depth and a geomorphic assessment of the site. Scala probes SC 1 to SC 4 and test pit logs TP1 to TP4 are presented in Appendix A and Appendix B, and their locations can be seen on Figure 1. It is envisaged that the northern half of the site (refer B Figure 1)generally comprises varying depths (2 to 5m) of stiff to very stiff, Silty Clay Fill. The fill material contains layers of organic material comprising twigs, branches, topsoil and organic clays. The depth to natural ground is shallowest on the hill slope in the south-eastern portion of the site (refer A/B Figure 1). Scala penetrometer testing suggests the depth to competent rock is less than 0.5m in this area. Preliminary Geotechnical Suitability Assessment T&T Ref HUTT CITY COUNCIL August 2009

18 4 In the south-western corner of the site, near the stormwater culvert, a layer of Fill material (approximately 1m deep) overlies natural gully infill comprising firm to stiff, Silty Clay interbedded with organic layers. The general site is poorly drained. The flat north-eastern section of the site ponds water. 2.3 Geotechnical Considerations Over the northern portion of the site (refer Area B Figure 1), buildings are likely to be founded on 2 to 5m of stiff fill. The organic content and uncontrolled nature of the fill means that any development would require site specific foundation design. Piles founding in natural rock are likely to be required based on the test pits excavated by T&T. The existing natural slope to the south west (refer A/B Figure 1) is generally suitable for residential development. Some retaining walls or batter slopes would be required on the upslope side of excavations for building platforms. These foundation recommendations are inferred from limited investigation pits and scala penetrometer testing. It must be appreciated that ground conditions could vary away from these investigation locations. 2.4 Site Geotechnical Summary Information Table 1: Summary information for Site NW5, Harold Grove Geotechnical suitability classification (refer Figure 1) Approximate total area available (m 2 ) Typical soil profile Most appropriate remedial solution A/B m fill over rock Timber piles to rock B m colluvium over rock on 25 degree slope C N/A 1 m uncontrolled fill over 3m alluvial/colluvium gully infill Excavation and retaining/battering of upslope cut No build zone-limit to landscaping areas Additional foundation preparation cost per lot 1 $18,000 $20,000 N/A 1Foundation preparation costs for a 10x15m building platform on each lot. These are costs over and above the costs of standard NZS3604 type shallow foundations and exclude clearance of vegetation, formation of access roads etc. Preliminary Geotechnical Suitability Assessment T&T Ref HUTT CITY COUNCIL August 2009

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20 Appendix A: Scala Penetrometer Logs

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25 Appendix B: Test Pit Logs

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31 Appendix B: Draft Indicative Development Plan

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33 Appendix C: DTZ Market Estimate

34 Jenny Clafferty Senior Resource Management Consultant Tonkin & Taylor Limited PO Box 2083 Wellington Direct Tel: Direct Fax: Mobile: Our Ref: Kb09152/r 27 October 2009 Dear Madam Market Estimate 8 Harold Grove, Stokes Valley, Lower Hutt - Northern Ward Land Review Project Thank you for your instruction to undertake a desk-top assessment to provide an indicative average section price for the proposed subdivision at 8 Harold Grove, Stokes Valley. At this stage we understand that high level valuation advice is required only and that a more detailed valuation would be required of each lot as it moves further into the land review process. Brief Description The subject property consists of a single allotment containing 992 square metres. The site provides a level building platform, with the balance of land being steeper bush covered to the rear. The property is located at the base of a ridge within the northwestern part of Stokes Valley within what is considered an average residential location. Zoning As instructed, our valuation is based on a proposed zoning of General Residential. Indicative Market Value Based on sales within this location we assess a likely selling range of this lot to be between: The above valuation is inclusive of GST. $95,000-$100,000 DTZ Level 10, State Insurance Tower 1 Willis Street, Wellington PO Box 1545, Wellington 6140 New Zealand Tel: +64 (0) Fax: +64 (0) A list of directors' names is open to inspect at the above address DTZ New Zealand Limited MREINZ Licence Number Registered Office Level 16, 34 Shortland Street, Auckland

35 Our valuation is on the basis that separate title is provided to each lot and that all conditions of subdivision have been met. Market Considerations Sales noted in the course of our assessment include the following: General Stokes Valley Street Sale date Sale Price Land area Land rate 432 Stokes Valley Road Jun-09 $90, $ George Street Jun-09 $30, $ George Street May-09 $30, $ George Street May-09 $30, $ Manuka Street Apr-09 $200,000 5,589 $36 29 Thomas Street Feb-09 $92, $ & 30 Hanson Grove Nov-08 $60,000 1,916 $31 We look forward to providing more detailed advice once details of the proposed subdivision are finalised. Yours faithfully K Blucher Dip Val, SPINZ Associate Director, Valuation Services Kb Harold Grove ltr 2/2

36 Appendix D: Preliminary Schedule of Development/Construction Costs

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