Hastings mayoral and council seat candidate Steve Gibson specialises in innuendo, as I reported here.

His favourite slap at HDC has made it into his official Voter Guide Profile. Very simply, he says “No” to “incompetence like buying the Assembly of God building for $1 million and selling it for $150,000.”

Now indeed that’s factually correct, almost; it was sold for $155,000. But seriously, there’s a much bigger story around this transaction, which was designed to – and in fact delivered – an award-winning answer to one of Hastings’ most vexing problems … homelessness.

Statements like Gibson’s in his Profile statement are unvetted, so candidates can say anything they want so long as they keep to 150 words. Yet they appear as gospel in every single ballot envelope, which in far too many cases is the only source of reference for voters about the candidates.

For that reason, a misleading statement like Gibson’s deserves calling out. And especially in his case, because for him this isn’t a one-off, it’s emblematic of his entire campaign strategy – making unsubstantiated claims about council ‘misdeeds’ and persisting in them despite official refutation.

So here’s the full story on the “incompetent sale”.

With enthusiastic public support, HDC – using council and government funding, as well as generous private contributions – has spawned a cultural, meeting, entertainment and hotel complex on Heretaunga Street East that most in the city are quite proud of and many frequent.

But plopped in the middle of this – at 305 Heretaunga St East – was the Assembly of God (AOG) mission, attempting to provide respite for the homeless in a dilapidated building they owned (as Hastings Church). Not the ideal activity for the neighbourhood, but making an effort to deal with a very serious social challenge that HDC was also determined to address.

HDC gathered together various parties, including Anglican Diocese, Presbyterian Church, Hastings Church and others to identify a relocation plan that would progress both objectives – enabling more appropriate development of the Heretaunga Street precinct and providing a better facility to provide pastoral care for the district’s homeless.

With those goals aligned, HDC purchased the AOG building in 2022 for $1 million, an amount significantly less than originally sought by the Church, with the intention of redeveloping it. The proceeds of the sale enabled Hastings Church to move their operation and establish what is now known as Kuhu Mai – a much-needed homelessness service providing pastoral care including health services and support for addiction.

Initially Council investigated plans to repurpose its site as an addition to Toitoi. However, as Council’s financial position had changed significantly post-Gabrielle, disposal versus redevelopment became the preferred option, but still seeking an outcome that aligned with enhancing the city centre.

Over about a year, Council officers met with a number of developers and investors potentially interested in purchasing 305 Heretaunga Street East. Conditional offers were received – the highest being $600,000, subject to the purchaser’s due diligence and Council approval. However with adverse due diligence outcomes, none progressed, predominately because of the investment required for asbestos removal and to meet structural strengthening requirements. No formal offer to purchase was realised. 

Finally, in June 2024 Council received two offers, one for $100,000 and another for $155,000. Council subsequently agreed to sell to Wallace Development for $155,000, with key conditions including the retention of the on-street façade. The resource consent has been issued for the work that Wallace Development proposes to undertake with a national tenant.

In a statement to BayBuzz, HDC comments: “We strongly refute any notion of corruption or underhandedness with these property transactions. Council purchased the building with broader outcomes in mind. Those outcomes were achieved with the creation of Kuhu Mai, and the subsequent sale price was supported by market evidence, and based on no development opportunities with a sale price higher than what was achieved.”

As for Kuhu Mai, the programme now located at St Andrew’s Hall and led by Warren and Sarah Heke is currently serving about 170 homeless people, with many of those now receiving medical care for the first time in ages. A report by Impact Lab covering the period 1 Aug 2022 – 30 April 2023 calculated the hub had generated a total social value of $2,636,432, with a social value per person engaged of $22,728. It’s won national award recognition from Local Government NZ.

About 18 months ago, Stuff journalist Marty Sharpe wrote this thorough article on the inspiring Kuhu Mai homeless programme, bringing that dollar analysis to life.

Nevertheless, as candidate Steve Gibson tells it, this is simply an incompetent transaction, possibly bordering on corruption.

This is the candidate Gibson I watched stand before hundreds at a candidates forum last week and say Hastings had no homelessness problem (actually characterising these people as simply beggars who had homes but preferred the street) and argue, in any event, this wasn’t the council’s business.

This is the candidate Gibson who as owner of two motels in Napier in recent years, has received over $1 million per year in government payments to provide emergency housing to the homeless. Perfectly legitimate, just a bit hypocritical.

Personally, I regard this whole episode as an admirable win-win story for Hastings – enabling both a welcome opportunity to further improve Hastings’ cultural precinct and, via HDC leadership, a hugely enhanced opportunity to address a pressing social problem for which the community cannot avoid ownership.

But, if you share the view that Hastings Council has no business trying to enable effective care for its homeless population, then candidate Gibson is your man. And you’ll probably enjoy his other anecdotes too.