Marine precinct sale stopped as injunction granted

The sale of Tauranga's marine precinct has been stopped at the last minute. Photo / Brydie Thompson

 

The sale of Tauranga’s marine precinct has been halted at the eleventh hour after current users filed an injunction.

The $13.98 million sale of the Tauranga City Council-owned precinct to Christchurch developer Sam Rofe was due to settle on Friday.

At 8.20pm on Thursday, the High Court granted an interim injunction, which prevented the sale from being completed, Mayor Mahé Drysdale said in a statement.

The council was also served with judicial review proceedings that raised concerns about the council’s processes relating to the transaction.

Drysdale said the council was assessing the documents to understand the nature of the claim.

The council had requested information and legal advice, he said.

“This is of significant importance to our city and the council will meet promptly to consider this matter after it has had an opportunity to assess the claim and its advice.”

 Pacific7 managing director Sean Kelly. Photo / John Cousins
Pacific7 managing director Sean Kelly. Photo / John Cousins

The injunction was filed by Sean Kelly, the managing director of marine service company Pacific7, which is based at the precinct.

Kelly said the injunction was on behalf of the affected businesses to safeguard the community’s interests and the future of local marine businesses.

Earlier this week, Kelly said he had planned to file an injunction but had to abandon it due to the financial risk.

After obtaining the sale and purchase agreement, Kelly said he and his legal team felt compelled to act.

“We now have clarity about what’s at stake, and it’s our responsibility to protect the interests of our community and industry.”

Kelly’s lawyer, Matthew King, said Pacific7′s main legal argument was that the council knew before entering into the sale agreement that many of the marine precinct users would be displaced, and that before deciding to go ahead with the sale, the council should have consulted with those users to understand the benefits they brought to the local economy and if it would be possible to move them.

“Pacific7 further states that the decision to sell places considerable risk to the future of our local fishing and marine service industries.”

Tauranga MP Sam Uffindell met with the Auditor-General and asked him to investigate the Tauranga marine precinct sale. Photo / Alex Cairns
Tauranga MP Sam Uffindell met with the Auditor-General and asked him to investigate the Tauranga marine precinct sale. Photo / Alex Cairns

These concerns echo those of local MP Sam Uffindell, who told Local Democracy Reporting it was in his view a “really bad deal for Tauranga”.

He met with the Auditor-General and asked him to investigate the sale.

Drysdale said he had written to the Office of the Auditor-General to express full support for any review or investigation it might deem necessary.

In May, Tauranga City Council announced the sale of the precinct at Sulphur Point for $13.987m to Rofe, to be developed into a superyacht refit destination.

The sale conditions meant most of the working-boat operators would need to shift from their precinct berths.

A report presented to the council said Rofe approached the council in late 2023 with a proposal to buy the precinct.

The Government-appointed commission running the council decided to sell the precinct. Elected councillors replaced the commission in July after the decision was made.

An aerial overview of the Tauranga marine precinct. The precinct is outlined in red, the blue-shaded areas are privately owned. Image / Tauranga City Council
An aerial overview of the Tauranga marine precinct. The precinct is outlined in red, the blue-shaded areas are privately owned. Image / Tauranga City Council

The 2.98-hectare precinct, also known as Vessel Works, was valued at $18.63m and $19.24m by different valuers. It is zoned for port industry and some sites within the precinct are already privately owned.

The 7195sq m hardstand area was separately valued at $6.12m and $7.81m.

To reach the sale price, the council started with a “valuation midpoint” of $23.13m then deducted $6.96m for the hardstand and $2.54m for “risk”. An agreed value of $110,000 for the hardstand and $250,000 for the Vessel Works plant and equipment was added, according to a report presented to the council.

As part of the sale, the council also agreed to pay up to $29.2m to develop an alongside wharf and replace the existing Bridge Wharf, and the council would receive part of the berthage fees.

Reports presented to the council said developing the precinct under private management would benefit the city’s economy.

The council will meet at 1pm on Monday to discuss next steps.

Drysdale said the meeting would not be open to the public due to the sensitive legal and commercial nature of the information and advice to be considered. The council would not comment further because the matter was before the court, he said.

  • This story has been updated to clarify that King’s words were Pacific7′s legal argument.

LDR is local body journalism co-funded by RNZ and NZ On Air.

10 comments

Good on you…

Posted on 23-11-2024 11:53 | By Shadow1

…Sean and Sam, this should have been stopped quite a while back. Obviously the Mayor and Councillors have been concerned about the sale but have quickly realised how bad the situation is, and not just for ratepayers. Our fishing industry deserves better too.
I’m sick of repeating how bad I think the commission was for Tauranga but this particular situation shows us how closely we need to look at all the deals set up by these people. It also shows us that there are ways of stopping them if we’re serious about them.
Good on you Mr. mayor and Councillors for thinking like ratepayers and considering their costs.
Shadow1


Rich ppl scrapping but rate payers foot the bill

Posted on 23-11-2024 13:28 | By anotherone2

Rich people scrapping over who gets richer while rate payers cover the legal costs.


Belongs to Tauranga

Posted on 23-11-2024 13:34 | By Rolingin

There seems to be to much Underhanded dealings going on , proper consultation never seems to take place , It is lucky that someone who is going to be affected by this sale has made the effort to Halt the sale .


Further investigations please

Posted on 23-11-2024 16:07 | By Kaimai

The transaction/ the signoff of the Marine Precinct are so smelly the SFO should be involved as well


The Master

Posted on 24-11-2024 16:00 | By Ian Stevenson

It has taken an injunction to stop the nefarious TCC mess, that costs a lot of money to do it.

It is shameful that the Council and its elected members have let it all get that far, that as a last resort the Courts have stopped it for now. This mess is just so bad, why does it have to get that far before TCC is stopped from such bad behaviour?

Sure, the FAB-4 set all this in motion, but EM;s recently elected failed to act appropriately, promptly and in line with already know to them concerns from the public about this dodgy deal.

Obviously the AG/SFO needs to be involved, it has got that bad.


@ Kaimai

Posted on 25-11-2024 08:13 | By Yadick

Totally agree with you. Absolutely the SFO needs to be involved in this. It is that serious.
In fact ALL the deals and transactions from the Commorons need looking into. There was way too many underhanded deals, misinformation, mismanagement, dirtiness and shoddyness going on in their term of control and manipulation.


Hmmm

Posted on 25-11-2024 09:13 | By Let's get real

Will the Tolley tribe be required to account for their actions...?
Will the irresponsible former MP that imposed this gang of four onto unsuspecting ratepayers, ever accept that it was an unwarranted and despicable act against local democracy.
It's not only our council staff, but also the Labour, Green and Maori party government that should be required to explain how millions of dollars have been allocated from public funds into nice-to-have vanity projects under their watch.
Maybe the Marine precinct is now being used to take pressure off the ridiculous community Whare project that is now coming out of the ground in Willow Street and the hyper extravagance of an eco-building to house those under the current spotlight elsewhere.
It's NOT your money.


Not just the Commissioners

Posted on 25-11-2024 09:58 | By QuietObserver

I think the dodgy staff that put the deal to the Commissioners in the first place also need to be held to account and questioned about how they went about the sale - they are the ones that would have justified to the Commissioners / sold the idea to them that it was a "good deal for Tauranga" and they would have been the ones that decided whether or not community consultation was required!!


Time for SFO

Posted on 25-11-2024 10:05 | By an_alias

Time for Tolls and the 3 Amigos to get taken to court for fraud ?
Get some of the glory rates returned to the tax payers where we had NO SAY IN ANYTHING.
For that matter we need an investigation into HOW LABOUR pushed these people into power without EVER being voted in.
ALL WE NEEDED was a cheap re-election BUT POLITICS was played to push COUNCIL AGENDA forward. We need an investigation into COUNCIL as well, heads need to roll.


Hmmm

Posted on 25-11-2024 16:26 | By Let's get real

I know that we can't direct pointed opinions at one person any more, following comments of support from the new out-of-town mayor and the way opinions are moderated to protect feelings by the media. However, as is generally the case, and has likely been pointed out to incumbent staff, they will ride the wave until it peters out and public opinion will focus elsewhere.
There is absolutely no chance to turn the clock back to stop these abysmal decisions without it costing ratepayers even more in court costs.
Meanwhile the architects of these actions will continue with their ideological dreams and ratepayers will continue to see selective consultation with groups that hold ill-conceived opinions, but will not be paying the bills through rates payments. We need democracy, honesty and integrity rather than hot air and dreams.
IT'S A CITY NOT A THEME PARK.


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