The Christchurch rebuild is being held up by a wrangle over $44 million in insurance payouts.
The Star can reveal today that projects are being delayed while the city council's insurer, Civic Assurance, battles for the money with its reinsurers.
Last week the city council received a $18.7 million payout from Civic Assurance after it won a legal battle with reinsurer New India for underground repairs.
But the city council says it is still short of other money it says it is owed.
Until this money is received by the council iconic buildings such the Sign of the Takahe on the Cashmere Hills won't be repaired.
Other projects include several on the council's Top 30 priority list like the Scarborough Life Boat Building and the Lyttelton Recreation Centre.
Civic Assurance is in arbitration with its reinsurers American International Group (AIG) and German based R + V for the money.
The council's corporate and finance committee chairwoman Cr Helen Broughton said it would be a dire situation if Civic Assurance did not win its legal battle.
"With all legal battles it could go either way - and that is my concern. If Civic loses Christchurch loses," she said.
"It doesn't look like we are going to get that money very quickly and it is holding up our rebuild."
She said the city council could handle a deficit of $10 million but not anything higher.
Community recreation and culture committee chairman Yani Johanson agreed the city council could not afford to wait for Civic Assurance to win the legal battle.
He was frustrated with Civic's lack of communication with city council staff.
"Everytime we wait then the cost [of construction] goes up and up."
Deputy Mayor Ngaire Button said the subject of insurance was "sensitive" and city councillors should not be commenting publicly.
"This is certainly not something we should be broadcasting because it is sensitive information and it will be released at the appropriate time."
Residents needed to be patient and let the city council "go through the process".
Civic Assurance's chief executive Tim Sole said he was not as "pessimistic as city councillors" about the $44 million.
"We are very confident we will win," he said.
- By Shelley Robinson of The Star
