A Christchurch city councillor says the council rushed through the purchase of properties worth almost $17 million in order to prop up a developer who is in financial trouble.
Mayor Bob Parker says the purchase of the properties, mostly in the city centre, was essential to achieve the council's plans for urban intensification.
The deal came after developer Dave Henderson ran into serious financial difficulties. Two of his companies are facing liquidation proceedings in the High Court.
Mr Parker says the council wants to mix quality, high-density housing with retail and commercial activity, along the lines of Mr Henderson's own plans.
Mr Parker says this would have been jeopardised if the sites were bought and developed as retail outlets.
However, councillor Chrissy Williams, who voted against the move, says the decision to buy the property was rushed through behind closed doors.
Ms Williams says the main motivation seemed to be bailing out Mr Henderson.
She says only one valuation was sought on each of the properties, and that rushed decision-making, without enough transparency, has been characteristic of this term's Christchurch City Council.
The properties were bought at their current market valuations, and the purchase will be funded with annual interest payments of $1.4 million.
