A judge has dismissed an injunction halting the controversial sale of Tauranga’s Marine Precinct.

Justice Peter Andrew’s decision, released on Friday, said the interim injunction order was no longer in force and had been discharged.

He found the arguments for stopping the sale “generally weak”, while claims of a local boat fleet being harmed were “overstated”.

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

The injunction was filed by Sean Kelly, managing director of marine service company Pacific 7, who owns land at the precinct.

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

The basis for Pacific 7’s injunction was the displacement of the working boats that use the precinct and a lack of consultation regarding the sale with precinct users.

The case was heard by Justice Andrew in the High Court at Tauranga in February, with the public gallery so full that an overflow courtroom was needed.

Justice Andrew’s decision said the merits of Pacific 7’s claims were “generally weak”.

“I concluded that Pacific 7 had overstated the impact on the black boat fleet. I reject the claim of irreparable harm.”

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 haul-out and fit-out services of the Marine Precinct would remain available after the sale to Pacific 7 and other users on commercial terms, Justice Andrew said.

The development agreement allowed use of the precinct by the working boat fleet for at least the next three years.

There were also alternative locations for Pacific 7 and the working boats, he said.

Despite these factors, there would be a “material change” for Pacific 7 and others at the precinct likely to face “a period of considerable uncertainty”.

In regard to the claim about a lack of consultation, Justice Andrew said the council “went beyond minimum requirements for consultation”.

It carried out engagement outside of and after the 2021– 2031 Long-Term Plan amendment process, he said.

The council formed the Marine Precinct Advisory Group after an independent review in 2019 and Kelly was a member.

There was consultation by TwentyTwo consultants from June 2021 to December 2022. This involved several reports and episodes of engagement with the council and Marine Precinct stakeholders.

Pacific 7 managing director Sean Kelly on the Tauranga Harbour in 2018. Photo / John Cousins

The stakeholders’ consultation included Pacific 7 and the Harvey Family Fishing Group.

The option of the type of disposal of the precinct was expressly canvassed on multiple occasions, Justice Andrew said.

Justice Andrew acknowledged the significant contribution Kelly made to the Marine Precinct community.

He concluded that during the relevant consultation and decision-making period Kelly had “stepped back significantly from the Marine Precinct”.

From 2022, Kelly took a two-year break for a sailing trip with his family.

He had previously told TwentyTwo that he did not plan to continue operating at the Marine Precinct, Justice Andrew said.

“Mr Kelly’s position may well have changed, but his apparent surprise late in the piece that the precinct was to be sold does appear, in substantial part, to be explicable by his absence.”

Pacific 7’s lawyer Matthew King told Local Democracy Reporting his client was reviewing the decision and taking legal advice on next steps.

Tauranga City Council confirmed on Friday it had received the High Court judgment.

Publication of the judgment was embargoed for 24 hours, until Saturday morning and the council would make a statement once the court embargo was lifted.

Both parties have been asked about their next steps in the case. Counsel for Rofe was also approached for comment on the judgment.

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