FUNDING
The Northland Regional Council is currently undertaking due diligence to purchase Kauri Mountain Farm and, with our society's help, convert it to Northland's first regional park. Much like work done at Awaroa, Elliot Farm, Hinewai, or Motu Kaikoura, these ‘lighthouse projects’ not only benefit the local area - but show others what can be done and encourage others to think about long-term afforestation and habitat loss in New Zealand. This progress shows a commitment to making a difference and leaving a lasting legacy to future generations of New Zealanders.
ONGOING OPERATIONS
Our initial estimate is that ongoing costs of management and governance would be in the range of $70,000 to $100,000 ($300 to $430 per hectare) per year plus rates, if no rates relief is given. This estimate is based on recent financial reports for Bream Head and an aggregate of other costs from similar projects such as Tawharanui and other regional parks, adjusted to a per hectare figure.
We have identified income sources both productive and charitable, as well as one off income from selling the existing mature stand of more than 10H of radiata at $60k net revenue per hectare.
We expect initial administrative start up costs in year one such as trust establishment legal fees that will not repeat. On an operational level, we foresee additional costs for fence fixing and earthworks which would not repeat in the same scale in future years.
We would expect the committee members to work on a volunteer basis and we expect a certain number of volunteer hours and in kind work from the community that we have already started growing around this project.
If it would help you, we can provide more detailed estimates on all the productive income sources we have identified. You can see a list of potential revenue sources and costs on the next page.
In conclusion, we believe that if the Kauri Mountain Restoration Society Trust was tasked with managing the regeneration of Kauri Mountain Farm and given access to the windfall from harvesting the current mature pine, we could provide a business plan that shows that this project would never burden regional rate payers.
Please contact us if you have any further questions and we hope to work with you soon on preserving and restoring Kauri Mountain for Northlanders and visitors for generations to come.
EXPENSES AND INCOME ASSUMPTIONS
EXISTING REVENUES
Existing identified revenue streams for ongoing management
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10Ha of mature radiata forest ready to be processed - expected
income $300k
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Over 100Ha of arable cattle farmland which can be eventually
fenced off and phased out once regeneration takes effect - also potential to create a blend of conservation, recreation and sustainable farming - an example of this would be Tawharanui.
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A nine cabin eco-campground with amenities as a revenue source.
Potential identified revenue streams for ongoing management
POTENTIAL REVENUES
Potential identified revenue streams for ongoing management
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Emission Trading Scheme carbon credits - whether through radiata and harvesting or through native forest regeneration.
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Honey production
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Part block forestry - while the regeneration project becomes economically self sustaining
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Grant applications for afforestation
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Pest control
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Research and education projects.