Residents
of Lakes Resort at Pauanui on the Coromandel coast successfully challenged
developers plans to turn their resort golf course into a stand-alone money
spinner.
Advertising for Lakes Resort offered residents private use of a 70 hectare
golf course. Sections were sold with a
tag requiring owners pay annual levies to “an incorporated society to provide
for playing rights on the [resort] golf course”. No incorporated society was ever set up. Developers said this would be a serious
constraint; incorporated societies cannot run as a business, raising capital
and paying a dividend to members.
Control of Lakes Resort changed after a 2002 mortgagee sale and a later
2009 liquidation of a number of Lakes companies. A golf course has operated at the resort
since 2004. Current owner Lakes
International Golf Course Ltd has big designs for the course. Villas were established for rent. A restaurant was set up. Playing rights were licensed to commercial
operators.
Neighbouring residents are refusing to
pay compulsory annual golf club levies, saying current arrangements do not
match those promised when the resort was first developed.
Resident Hartley Vincent went to the
Court of Appeal challenging Lakes International demands he pay golf club levies
for 2011, 2012 and 2013. The Court ruled
he is not liable to pay. A covenant
registered with his Lakes Property requires payment to an incorporated society
running the resort golf club. He can
ignore demands from any organisation other than an incorporated society. Lakes International says the golf course is
not viable if run as an incorporated society.
Vincent
v. Lakes International – Court of Appeal (9.08.16)
16.123