Pursuant to sections 16 and 19 of the Canterbury Earthquake Recovery Act 2011, the Minister for Canterbury Earthquake Recovery gives the following notice.

N o t i c e

1. Title

1.1. This notice is a direction to develop a Residential Red Zone Offer Recovery Plan.

2. Direction

2.1. Pursuant to section 16(1) of the Canterbury Earthquake Recovery Act 2011, I direct the Chief Executive of the Canterbury Earthquake Recovery Authority (the “Chief Executive”) to develop a Residential Red Zone Offer Recovery Plan (the “Recovery Plan”) in accordance with the matters specified in this direction.

3. Geographical Extent

3.1. The Recovery Plan must only apply to the areas of greater Christchurch identified as the residential red zone by the Crown.

3.2 The Recovery Plan will not apply to land outside the residential red zone.

4. Matters to be dealt with

4.1. The matters to be dealt with in the Recovery Plan are focussed on whether the Crown should make offers to purchase vacant, commercial and uninsured property in the residential red zone (both flat land and in the Port Hills), whose owners have not accepted or been made a Crown offer.

4.2. It will also consider how such offers should be constructed, including the terms and conditions and method of calculating the quantum of consideration. (It is noted that regardless of the outcome of the Recovery Plan no “replacement” offer will be less than the September 2012 Crown offer of 50 percent of the 2007/08 rateable value for land only.)

4.3. As a consequential matter the Recovery Plan should address whether new offers should be made to other owners who did not receive the Crown’s 100 percent payment, for example, but not limited to, those property owners who were underinsured by more than 20 percent, those who have already received (but did not accept) a Crown offer and for Māori land where owners were unable to accept the Crown offer.

4.4 The Recovery Plan will not address:

4.4.1. zoning decisions (that is, the basis on which properties were zoned as red or green and the decision to make an offer to purchase properties only in the residential red zone);

4.4.2. the Crown offer to purchase insured residential red zone properties;

4.4.3. remediation or mitigation of land or natural hazards;

4.4.4. the interim or future use of the residential red zone; and

4.4.5. district plan zoning and provisions.

5. Development of the draft Residential Red Zone Offer Recovery Plan

5.1. The Chief Executive is directed to prepare a preliminary draft Recovery Plan available for consultation. During the consultation period, any person who wishes to may provide written responses to the preliminary draft, and any information they consider relevant, which would then inform the development of the draft Recovery Plan.

5.2. The Chief Executive must provide 10 working days for written responses from the public. The Chief Executive is not required to hold any public hearings.

5.3. The Chief Executive is directed to consider the public’s written responses and any additional information, and must develop a draft Recovery Plan to be submitted to the Minister for Canterbury Earthquake Recovery to be publicly notified in accordance with section 20 of the Canterbury Earthquake Recovery Act 2011 by 26 May 2015.

6. Other Recovery Plans

6.1. The Christchurch Central Recovery Plan and the Land Use Recovery Plan have been approved. The Lyttelton Port Recovery Plan is currently being prepared.

7. Minister for Canterbury Earthquake Recovery

7.1. Upon receipt of the draft Residential Red Zone Offer Recovery Plan, the Minister for Canterbury Earthquake Recovery will notify it in accordance with section 20 of the Canterbury Earthquake Recovery Act 2011. Written comments will be invited from the public on a 10 working day basis.

Dated at Wellington this 20th day of April 2015.

Hon GERRY BROWNLEE, Minister for Canterbury Earthquake Recovery.