Those who sell property are usually looking for the highest possible offer, but Newport-Mesa Unified School District officials considering what to do with 11.36 acres of costally zoned land in Newport Beach are taking a different course.
Trustees on Tuesday approved seeking a waiver from the state that would exempt them from portions of California Education Code that require public school districts to accept the highest bid when leasing or selling a piece of surplus property.
The move comes after a NMUSD-convened advisory group, composed of a cross-section of stakeholder representatives, held a series of public hearings beginning in November to prioritize potential uses for the site.
Located at the western terminus of Costa Mesa’s 16th Street, the parcel is adjacent to the 384-acre former Banning Ranch oil field (renamed Randall Preserve), recently acquired through a $97-million conservation effort by the nonprofit Coastal Corridor Alliance.
Conservationists and community members urged members of the Banning Ranch Surplus Land Committee to advise that Newport-Mesa Unified officials retain the property as open space, while others favored creating an outdoor classroom where students could benefit from the proximity of Randall Preserve.
Wendy Leece, a former NMUSD trustee who served from 1993 to 2002, spoke on behalf of both options during Tuesday’s board meeting.
“I challenge you to take this process seriously. Because it’s an opportunity,” she told board members. “It isn’t just 11 acres of dirt — there are owls out there, the burrowing owls, and there are rules regarding the habitat that surround the burrowing owl. I encourage you to think outside the box and think of an outdoor classroom on the westside.”
Despite the predominance of that viewpoint, members of the advisory committee identified a ground lease with a state waiver as the best possible use for the site, followed by keeping it as undeveloped open space and then selling off the land.
Committee chair Adam Ereth — who owns a Costa Mesa-based environmental consulting business and chairs that city’s planning commission — explained the group’s preference was to give the school district the widest spectrum of options.
“There are some very strong feelings around wanting to retain this as open space. And although that may be true, and I think a lot of people do believe in that, the fact does remain that there are other options that you can pursue,” Ereth said Tuesday. “We, collectively on this board, wanted to leave that to you to decide, not just us.”
District legal consultant Stephen McLoughlin assured trustees seeking a waiver from the state would not obligate NMUSD to take any particular course of action but would, instead, allow officials to issue requests for proposals meeting any parameters they wanted to establish.
“When you do these RFPs, you get people from all over the world who will come to your property and come up with ideas that, frankly, we hadn’t thought about,” he said. “It’s a good first step — it doesn’t commit us to anything.”
Newport-Mesa Assistant Supt. Jeff Trader said Wednesday it will ultimately be up to board members to decide whether they want to pursue a nature-oriented use for the property or consider other alternatives, including workforce housing or swapping the parcel for another, more buildable site with fewer environmental constraints.
“I think the board would make a determination of what the most beneficial use is, and that may not be the highest bid,” he said. “They simply want the flexibility to get the best value.”
In its application to the state Board of Education, the district must include information indicating whether each of its bargaining units officially opposes, supports or is neutral to the idea of a waiver, something Trader anticipated would be completed by April 16.
NMUSD is currently looking at going before the board sometime in July, he added.
Bert Potter (front) and residents of the Centrepoint Community in Albany. Photo / Supplied
A multimillion-dollar Auckland property that was the site of New Zealand’s most infamous commune, Centrepoint, has been withdrawn from sale without finding a buyer.
The huge site in the city’s north has a council valuation of almost $9 million and had been billed as “one of the last significant underdeveloped landholdings on the fringe of Albany”.
It also has a dark history as it was where Bert Potter served as the spiritual head of the Centrepoint commune.
Potter was arrested in 1990 for sexual abuse and drugs crime, with survivors sharing stories of life in the commune in the acclaimed documentary, Heaven and Hell – The Centrepoint Story, in 2021. Many of them had been exploited as children by adults living at the commune.
The commune was shut in 2000 and Potter died in 2012, aged 86.
Since then, the property at 14 Mills Lane has been run as a wellness and retreat centre, before being put up for sale and marketed last year as a big development opportunity.
However, agent Michael Nees, from Bayleys North Shore Commercial, said the property did not get a buyer “so it was withdrawn from the market” at the seller’s wish.
Advertisements for the sale of the site were taken down from property website OneRoof in December.
Council has valued the 7.62ha site at $8.7m, but it is believed the owners had hoped to get more than $10m.
Owners Prema Charitable Trust bought the property in 2008 for just over $4m. The trust operates the Kawai Purapura retreat at the site, which was also home to the Wellpark College of Natural Therapies.
It had been advertised as “an incomparable opportunity” to secure a huge slice of city land where applying for rezoning could generate “considerable value uplift”.
The site sits on land overlooking Albany’s commercial precinct and is close to Albany Bus Station and Westfield shopping centre.
Centrepoint was opened by Potter in 1977 and at its peak had a permit for 244 fulltime residents.
It was based on therapeutic encounter groups popularised in California in the 1960s, promising social transformation by encouraging open communication.
The commune was shut down in 2000 after some leaders, including Potter, were convicted of sexual abuse and drugs crimes.
Potter was convicted and sentenced in 1990 to three and a half years in jail on drug charges and in 1992 to seven and a half years for indecent assaults on five children, some as young as 3.
Other men were also convicted of indecently assaulting minors, sexually assaulting minors and attempted rape of a minor.
A 2010 Massey University study revealed that one in every three children at Centrepoint was sexually abused.
Three survivors from the infamous cult spoke out in 2021, writing an open letter calling for restorative justice for children who were abused.
Christchurch GP Caroline Ansley wrote the letter with two other Centrepoint survivors, who are featured in the TVNZ docudrama Heaven and Hell – The Centrepoint Story.
Ansley said realising she was not the only one who was abused was empowering.
“I had to ask myself what’s worse – fear of exposure or the disappointment of not advocating for the right thing.”
The trio asked in their letter that former Centrepoint members consider “their obligations towards the children of the community” and acknowledge the resulting social, emotional and psychological difficulties many still experience as adults.
“We ask you to hear our voices. We ask you to set aside your complex feelings surrounding this issue and acknowledge our realities. We ask that you work with us to find ways to enable healing and restoration of the history.”
Drugs such as LSD and ecstasy were manufactured on the property and taken in group experiments that involved youngsters.
“This potent mix of social control, parental child neglect, drug use and hyper-sexuality set the scene for child abuse to occur,” the letter stated.
The signatories, some of them anonymous but known to the authors, include Louise Winn. She was only 11 when she was brought to Potter’s hut by his wife Margie. She was later also sexually abused by his son John Potter and other men.
To keep predators away at night, the girl barricaded herself with junk in her caravan on the property or escaped into the bush.
- In Japan, homes where a death has occurred carry a stigma that can make the home hard to sell.
- But some agents are making a career out of getting these “stigmatized” properties off the market.
- One expert estimates that some of these houses can have their prices reduced by as much as 50%.
The first time Koji Hanahara stepped into one of Japan’s “stigmatized properties,” it was the scene of a lonely death. An elderly man had died alone in his apartment, and his body was only discovered two months later.
It was unnerving, but it reminded Hanahara of why he chose to do what he did. As the CEO of Marks Co., a Japanese real-estate company that specializes in cleaning, renovating, and selling stigmatized properties, it’s his job to get these houses back onto the market again — despite their history.
“I thought I should be the one to do it. At that time, I realized again that it is my mission to help as many people as possible,” Hanahara told Insider.
Building a business around ‘accident properties’ that are hard to sell
The term “jiko bukken” — which translates to “stigmatized property” or “accident property” — is most commonly used to describe a property where a suicide, murder, or natural death has occurred.
“In Japan, it is said that there are about 30,000 lonely deaths at home, about 13,000 suicides a year, and about 2,000 homicides and fire deaths a year, making it a total of 45,000,” Hanahara said. “Not all these properties are rented or sold, but the current situation is that there are a large number of accident properties.”
Not only can these houses be hard to clean, but the stigma makes them almost impossible to sell.
“In Japan, many people have the impression that accident properties are ‘scary,’ ‘ghostly,’ and ‘dirty,’ which makes them exclude accident properties when choosing real estate,” Hanahara said.
While most real-estate agents want to avoid sharing grisly details, Hanahara does quite the opposite.
After working at a construction company for residential homes, Hanahara started his own real-estate agency, Marks Co., in 2016. He pivoted to specializing in stigmatized properties in 2019.
The listing information on his company’s site, Jobutsu Real Estate, includes a room description and details of how and when the previous owner died. “Suicide in December 2018” reads one listing currently available for 26.8 million yen, or $194,857. “The former owner died indoors in 2014” reads another that’s on the market for 21.8 million yen.
Cheaper to rent or buy
Despite the stigma that’s attached to these houses, there’s a big plus point for buyers and renters: price.
Hanahara estimates that properties where lonely deaths have occurred tend to have prices reduced by 5 to 10%, while houses where suicides have occurred tend to have prices reduced by 20 to 30%. The prices of houses where murders have occurred can be reduced by as much as 50%, he added.
On the Jobutsu site, a 29-square-meter stigmatized condo apartment in Shinagawa-ku, Tokyo, costs 21.8 million yen. A non-stigmatized condo of the same size in the same location costs 27.6 million yen, per data from the Japanese real-estate platform Utinokati.
For some young families, the cheap rent is attractive. Kasia Pawlus-Ono, a Polish stay-at-home mom, moved to Japan from Australia with her Japanese husband and their daughter in 2019.
They lived in a stigmatized property in Hanamigawa, in the Chiba prefecture, from March 2019 to May 2021. The former tenant was a young mother who had died in the house, Pawlus-Ono said.
“It was around 25,000 yen when it was half-priced,” Pawlus-Ono told Insider. “We paid one year of the rent basically up forward, because it was half price from the original because of the stigmatized property status.”
In contrast, the average monthly rent for an apartment in Hanamigawa is 56,084 yen, per Utinokati.
“I would say it was a positive experience because our neighbors were fine. It also seemed like they were quite happy that someone moved in because for them it was strange that it was empty for so long,” Pawlus-Ono said. She added that her rent went back its regular price — about 50,000 yen — after a year.
Rent may recover over time, but it doesn’t mean agents no longer have to notify future tenants about the incident. Japan’s Building Lots and Buildings Transaction Business Law prohibits realtors from intentionally withholding facts about the properties they’re selling, Hanahara said. And in October, new guidelines from the Ministry of Land, Infrastructure, Transport and Tourism specified that brokers must disclose deaths if they had been well-known incidents, involved foul play, or have a significant decision-making impact. Realtors must also disclose all past deaths, regardless of their nature, if tenants ask.
Scott Rothman, a technical director from the United States, moved into a stigmatized studio apartment in Shibuya, Tokyo, in September 2017. He lived there for slightly over three years.
“I got I think two free months of rent and the rent was quite discounted,” Rothman told Insider. “The value was way better than I ever could have actually afforded and I even got a couple of free appliances out of it.”
The previous tenant was an older woman who had died of natural causes in the house, Rothman said: “I was weighing the pros and cons of the apartment when I thought, ‘People have to die somewhere? What’s the difference?'”
How to find stigmatized properties in Japan
People can also find stigmatized properties in Japan on a website called Oshimaland.
The site maps stigmatized properties and provides the details and date of the incident that occurred there. However, it’s not an official record; anyone can submit entries to the site, website creator Teru Oshima told Insider.
“Landlords have an incentive to check the website since everything that’s written on it has a negative impact on the prices of their assets,” Oshima said. “They can send me emails, post comments, send direct messages through Twitter or Facebook or any other route to contact me to correct the information if it’s not true.”
Marks Co. receives about two to three notifications about potential property listings in a day, most of which come directly from the relatives of the deceased. The company also works with funeral houses and special cleaning companies to look for more properties, Hanahara said.
In terms of tenants, he’s noticed a trend of people in their 20s and 30s, single mothers, and single women living in stigmatized houses. And while the discounted pricing is one reason these apartments can be appealing — Tokyo, for example, is the fourth-most expensive city in the world to purchase property — it’s not only about money.
“When you think of living in an accident property, you may have the idea that you are choosing the accident property because you have no money,” Hanahara said. But the property might have other appealing perks, such as being located near public transport or in a new building, he added.
Some real-estate agents have reservations about dealing with stigmatized properties.
“I know there is certain demand, but it’s really risky,” Yuki Yanagita, a sales representative from real-estate company J&F Plaza, told Insider. J&F Plaza specializes in helping foreigners find property in Japan.
Along with a smaller pool of buyers, the cost of deep cleaning the house is borne by the agency — something not every company is willing to take on, Yanagita said. People in Japan often also closely associate stigmatized properties with the paranormal, he added.
But as for Hanahara, his goal is step in and handle exactly the stage of the process that others stay away from.
“We will help those who are willing to sell their accident property right from the stage when the accident occurred,” Hanahara said.