PHOTO: Wellington city councillor Iona Pannett. Photo: RNZ / Samuel Rillstone
According to Wellington City Councilor Iona Pannett, prospective buyers should steer clear of purchasing apartments in Wellington City due to the escalating expenses associated with earthquake strengthening and insurance. Her remarks come in the wake of a devastating fire that consumed a heritage building in the city. This fire incident occurred after more than two decades of disputes concerning the property owner’s obligations for earthquake strengthening.
Iona Pannett has expressed the need for the government to reevaluate the earthquake strengthening laws, which she considers impractical since their enactment in 2016. “For a long time, we’ve been aware of this issue, and the legislation implemented in 2016 was destined for failure,” Pannett asserted.
Wellington mayor Tory Whanau said the city council wanted to look at the way it managed heritage buildings. Photo: RNZ / Samuel Rillstone
She emphasized the importance of concentrating on public buildings to ensure public safety but suggested a more comprehensive risk analysis when it comes to privately owned structures. Pannett also raised concerns about insurers becoming increasingly assertive, particularly in response to climate-related disasters. Even if the government revises the laws, insurers might insist on high premiums or refuse coverage. This situation could result in individuals violating the law by not insuring their properties, creating a complex dilemma.
The recently affected building, Toomath’s building on Ghuznee Street, dating back to the late Victorian era, was engulfed in flames. Fortunately, no injuries were reported, but the building’s severe deterioration prevented entry. It had been subject to quake-prone building notices for over two decades and had remained vacant since 2019.
The property had become a canvas for graffiti, covered in vines, and the temporary shelter for transient occupants who accessed it from the back, facing a Cuba Street parking lot. The police sought to interview four young individuals, three boys and one girl, aged approximately 10 to 15, who were observed entering the building before the fire.
Felix Wenzel, the owner of a neighboring store, Capital Fishing, expressed disappointment that the property owners and the council failed to reach an agreement, leading to the building’s deterioration. He suggested that the council should be more flexible and make decisions regarding such deteriorating properties.
In response to the incident, Wellington Mayor Tory Whanau expressed a desire to review the management of heritage buildings in the city. She stressed the need to retain the city’s heritage look where feasible and evaluate potential changes in legislation to address earthquake-prone buildings more effectively.
This fire incident occurred shortly after the council announced a substantial cost increase in the Wellington Town Hall strengthening and redevelopment project, which had already experienced significant budget overruns. Additionally, plans were unveiled for the costly strengthening and rebuilding of Wellington Library.
Pannett proposed that both local and central governments should consider the extent of support they can provide to private property owners required to strengthen their buildings for public safety. She recommended the provision of grant funding, as the existing loan scheme is insufficient to cover all costs. Given the current circumstances, she believed long-term renting was a more sensible option for inner-city living.
“In the current environment, purchasing property may not be advisable due to the associated costs,” she concluded.
SOURCE: RNZ