CERA has released its draft red zone recovery plan. Here is a link to it.
Taking into account the five key criteria the Chief Executive’s preliminary views on the quantum of the new Crown offers were as follows:
• For all vacant red zone land: a new Crown offer at 100% of the 2007/08 rateable land value.
• For all insured commercial red zone properties: a new Crown offer at 100% of the 2007/08 rateable land value and 100% of the 2007/08 rateable improvements value for the insured improvements, if the insurance benefits are transferred to the Crown. Alternatively the owners may choose not to accept any payment for the improvements and keep the benefits of their insurance claims.
• For all uninsured improved red zone properties: a new Crown offer at 80% of the 2007/08 rateable land value. This takes into account the need to balance health and wellbeing needs and a timely recovery process with insurance status and precedents, costs to the Crown and fairness and consistency. No payment should be made for uninsured improvements. The owners could choose to relocate, salvage or sell any uninsured improvements, or they could elect for the Crown to demolish the improvements. The Crown would meet the demolition costs.
Comments on the proposal were required by 9 July 2015.
