Hawke's Bay councils are figuring out where to find $92 million for buying out red-zoned properties.
The Government has agreed to pay half, but the rest will likely fall on the region's ratepayers.
Details of the new deal were finally revealed on Thursday, but for the more than 250 red-zoned residents, it doesn't change much.
Red-zoned resident Chris Barber told Newshub the deal is "just one piece of the puzzle but it doesn't change our day-to-day life, or how we move on from here".
His neighbour Dan Gale is in the same boat and said the deal is disappointing.
"All those bits that are critical to making informed decisions are missing. There was no detail on the structure of the buyout and how that would look for mixed-use properties that have businesses and homes," said Gale.
The latest Government package for Hawke's Bay is worth $556 million:
- $260 million is for infrastructure projects
- $203.5 million will be spent on flood protection
- $92.5 million on buying out red-zoned houses.
Hastings District Mayor Sandra Hazlehurst told Newshub there is still information being worked through.
"We don't know the details of that offer at the moment, but that is being worked out and finalised now. We are then going to talk to our community," said Hazlehurst.
Hastings and Napier Councils need to find $92 million for the buyouts alone, which is expected to push rates up.
"We know this is a financial burden and we need to manage that burden for future generations," said Hazlehurst.
But she added that while the terms of the agreement from the Crown place an obligation on the council to share costs, it is offset with a Government contribution to critical bridge, roading and transport network repairs.
"So there is no increase in the overall costs for our recovery by adding this requirement to co-fund buy-outs", Hazlehurst said.
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Napier's Mayor Kirsten Wise was hoping the Government would pay a larger percentage of property buyouts because the Crown covered 100 percent of the cost of Christchurch's red zone.
She worries there will be an unfair cost to Hawke's Bay's ratepayers.
"These will be loan funded, it's not something we will have money in the bank right here and now. It's certainly going to be a challenging time ahead of us," said Wise.
Although she's grateful the deal includes funding for roading and flood protection because it was something her council pushed really hard for in negotiations.
"That's just fantastic for the whole region", she said
Cyclone Recovery Minister Grant Robertson said the $556 million package is the result of five weeks of negotiations.
"We've tried to work with councils to be as fair as we can possibly be while also looking after taxpayer's money," he said.
But the ratepayers aren't thrilled, some told Newshub they wanted the Government to treat Hawke's Bay the same as Christchurch.
"The Government should pay the lot," said one woman.
Those who don't want to leave Esk Valley are worried they'll be forced to, fearing the council will try and stop building consents and extinguish property rights.
"We'll be screwed over, like what the Whakatane District Council did to residents in Matata," said Gale.
Robertson said those decisions are up to councils, but that Cantabrians didn't face those problems.
"We saw in Canterbury that there are still people in the red zone in Christchurch," said Roberston.
Hawke's Bay councils are aiming to present buy-out offers to homeowners by October 1 and although it's unknown how much they'll be offered, it's hoped to be close to market value.
"Initial conversations we've had is that it will be pre-cyclone valuations," said Wise.
