Cooperative Development

[CraigD]

For over a decade a group of derelict shops have stood at the end of our street rented out as substandard dwellings by a landlord who is now under more pressure to sell due to the regulative changes. There is a pre-unitary plan resource consent granted for development for apartments of which a feasibility study showed to be marginally profitable and no developer has gone near it in the 7 years it has been marketed.

The upmarket neighbouring community despises the block (which has had a history of drug dealing), and there is no shortage of neighbours who would like ownership and control but as yet no one has been able to organise a way forward.

Can anyone advise or give direction to advice regarding cooperative group/community developments, their potential structures and governance? If a cooperative were to take ownership, although holding initially there would be longer term options to obtain an adjacent shop which would then allow a profitable apartment development.

[DaveW]

You say a developer has not gone near it in the 7 years it has been marketed for sale. I would want to know why that is.

[CraigD]

You say a developer has not gone near it in the 7 years it has been marketed for sale. I would want to know why that is.

Unrealistic cashed up vendor who was happy to let it as a slum while they waited (healthy homes regulation will put pressure on this) and who mistakenly believes the tens of thousands they put in to resource consent for apartments has value (it is not a feasible project). It's been with two agencies with no effort put into marketing and the first thing the agents say is how unrealistic the vendor currently is.

The 4 commercial units they would A) need substantial basic improvements B) not be high demand or yield/m2. So the place is mostly attractive for people who dislike the status quo rather than investors or developers. Long term there may be pay off though in expanding the development plans but that has many unknowns and would take a long time. I definitely wouldn't go near this alone, but for the sake of the community if the risk could be spread a lot I would been keen.

[DaveW]

I would first determine if there is enough interest in the community to contribute to a fund towards purchasing the property. A bank would then want to see a registered valuation. A lawyer would help you put the fund together.

[artemis]

After being involved with a couple of cooperatives and a body corporate there is no way I would go there. Getting anything done is a time consuming nightmare if not impossible.

[nick000]

Where abouts is the project?