The sale of Tauranga’s marine precinct could cause “irreversible harm” and drive some businesses out of town, a court has been told.

Tauranga City Council’s $13.98 million sale of the precinct to Christchurch developer Sam Rofe was due to settle in November 2024, but was halted by a last-minute High Court interim injunction.

The injunction was filed by Sean Kelly, managing director of marine service company Pacific7, who owns land at the precinct.

Kelly also applied for a judicial review of the council’s processes relating to the transaction.

Justice Peter Andrew heard arguments in the case in the High Court at Tauranga on Tuesday before a packed public gallery in the main courtroom and an overflow courtroom.

The basis for Pacific7’s injunction was the displacement of the working boats that use the precinct and a lack of consultation with precinct users.

Pacific7’s lawyer Matthew King said fishing boats had a long history in Tauranga and had been using the area that became the precinct for decades.

Pacific7 managing director Sean Kelly on the Tauranga Harbour in 2018. Photo / John Cousins.

The reason for filing was a “genuinely and strongly” held view the sale would do “irreversible harm” to longstanding members of the precinct.

A proposal for the fishing boats to instead work from Fisherman’s Wharf near Tauranga’s CBD was “not a feasible alternative” as some could not fit under the Tauranga Harbour Bridge, King said.

Evidence from some businesses was they would have to leave the area if they did not have access to a wharf north of the bridge.

This would mean a loss of jobs and loss of significant revenue for the city, King said.

“Commercial marine business is the fabric of our culture and this deal puts it at risk.”

Under the sale and purchase agreement, there was no guarantee for berthing for working boats at the precinct, King said.

King said he was currently not looking for a full judicial review of the sale but for the interim injunction to continue while the sale was examined.

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.

Tauranga City Council’s lawyer Sally McKechnie said the key context was the marine precinct was a “non-core council” activity.

She said King’s submission was about commitments to the marine industry but much of this was focused on fishing.

“There is no statutory requirement for the council to provide a marine precinct at all or for particular users or in a particular form.

“It’s not a strategic asset of the council’s and it never has been.”

The council did not have to provide fishing or working boat facilities, McKechnie said.

There were no ongoing contractual commitments to the users or potential users of the current wharf, she said.

The council had acknowledged that the sale would impact on some current users, McKechnie said.

For the interim orders to continue, the council submitted Pacific7’s challenge did not have the merit to further delay the development of the precinct, she said.

There would be “further costs on the council to maintain an asset which is underperforming and not achieving the economic aspirations of the city”, McKechnie said.

Large vessels may have to relocate from the Tauranga marine precinct in future. Photo / Brydie Thompson

The issue of whether the precinct users were consulted about the sale was discussed at length.

Lawyers for the purchaser argued numerous meetings were held with marine users and, over the years, the option to sell was openly discussed.

Lawyer Jeremy Johnson said: “The issue of the future of the [marine precinct] was much discussed in this community for years.”

Rofe approached the council in late 2023 with a proposal to buy the precinct with a vision of it becoming a “premier superyacht refit destination”.

King said when the decision was made to sell the precinct to Rofe, users were not made aware of it.

Kelly was overseas when the sale was announced publicly in May 2024 and did not find out until September when he returned, he said.

When the sale was entered into in May the council was run by a government-appointed commission. It was due to settle in November after the July election.

The newly elected council first discussed the sale at a meeting in October where users aired their frustrations with the sale and being forced to leave the precinct.

Justice Andrew reserved his decision and said the interim orders remained in the meantime.