Tauranga City Council has released a range of previously private documents and agendas from closed-door meetings relating to the controversial sale of the marine precinct.
The sale of the precinct has been halted at the eleventh hour a week ago after current users filed an injunction. 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. It was seeking information and legal advice, Drysdale said. Here's some of what RNZ has learnt from those documents. A property developer brought the deal to the councilOn 2 August 2023, council's chief executive Marty Grenfell met with developer Rupert Curry and discussed development opportunities in the city. A couple of weeks later, Curry travelled with Christchurch developer Sam Rofe to Tauranga to show Rofe the marine precinct. The land has never been advertised by the council as being for sale on the open market. On 21 August, Curry wrote to Grenfell saying the two "have a bit of a vision with this undeveloped site as detailed in his email below, If [sic] of interest would you be keen to meet Sam?" Grenfell said he would be "very happy" to meet Rofe. Council knew the process was riskyWhen taking options to the commissioners, a public-excluded council agenda from 8 April 2024 recommended a "direct, non-competitive negotiation and divestment process with Sam Rofe" despite noting the risk that council might be challenged for not providing an open process and that it meant council wouldn't really know what the market value for the land was. The report had a second option, going to open market to sell the land, but felt there would be a risk that Rofe might withdraw his offer and council might in turn not get another favourable one. Council obtained two valuations of the land - Rofe's offer was much lowerCouncil obtained a valuation of the land in July 2023, followed by a second valuation in December of that year. When including improvements to the land the midpoint valuation was $22.144 million. A public-excluded council agenda from 8 April 2024, said that "the purchaser has agreed to align his offer with the valuation mid-point data". 25 Hikuwai Place, valued at $6.963m was excluded from the sale and Rofe was "not willing to pay the harbour front premium" of $3.3m " that was included in one of the valuations "as his view is that this is appropriate for residential but not an industrial precinct". The land was sold to Rofe for $13m. The council could have consulted on the sale - but didn'tAs part of the 2021-2031 Long-Term Plan (LTP) Amendment, council talked about the potential sale of non-core council assets to fund the new civic precinct in the city centre, Te Manawataki o Te Papa. The marine precinct was specifically mentioned as one of the assets that might be considered for sale. It was noted that it was likely further consultation would be undertaken with key stakeholders prior to any disposal. However, the public-excluded council agenda from 8 April 2024 said that the marine precinct was not considered a strategic asset so its sale did not need to go through the LTP consultation process. The report said it did consult with two stakeholders, but did not name them. It also said that in 2022 the council had engaged consultants to look at future options for the marine precinct, which included possible sale or lease, and that could be considered as consulting with the community. "In short, council can decide that no further consultation is required," the report said. Original Article: https://www.rnz.co.nz/news/national/535062/property-developer-took-marine-precinct-idea-to-council-newly-released-documents-show
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The sale of Tauranga’s Marine Precinct has been temporarily stalled by the High Court after an interim injunction was officially filed late last night by Pacific 7 Limited. This action successfully halted the settlement, which was scheduled for today, 22nd November. Sean Kelly of Pacific 7, supported by an affidavit from Erika Harvey on behalf of affected marine businesses, took this decisive step to safeguard the community’s interests and the future of local marine businesses.
Having obtained the Sale and Purchase Agreement via a Local Government Official Information and Meetings Act (LGOIMA) request, Kelly and his legal team felt compelled to act. “This decision wasn’t made lightly,” said Kelly. “We now have clarity about what’s at stake, and it’s our responsibility to protect the interests of our community and industry.” Matthew King, who is part of Pacific 7’s legal team, elaborated: “Pacific 7’s main argument is that Council knew before entering into the agreement to sell the Marine Precinct that many of the Marine Precinct Users would be displaced as a result of the proposed sale. Before deciding to go ahead with the sale, Council should have consulted with those Marine Precinct Users to understand what benefits they were bringing to the local economy and whether it was even possible or feasible to relocate them within the Tauranga City Harbour precinct. Pacific 7 further states that the decision to sell places considerable risk to the future of our local fishing and marine service industries. This reflects concerns raised by central and local MPs who, in recent days, have voiced their own objections to the Commissioners’ decision to sell the Marine Precinct. The Tauranga City Council did not oppose interim orders being made on a temporary basis. This pause allows the community and council to review the circumstances of the sale more thoroughly. “We’re encouraged by the council’s willingness to take this step,” said Harvey. “It reinforces their promise to prioritise accountability and collaboration moving forward.” A Path Toward Accountability Despite this development, the ongoing investigation by the Auditor-General remains critical. Harvey stressed the importance of examining how this deal unfolded and ensuring better governance practices in the future. “This sale has been a wake-up call,” she said. “It’s about ensuring public assets are managed responsibly and that decisions reflect ratepayers’ interests.” Looking Ahead Kelly, Harvey, and the newly elected council members are optimistic about developing a more productive working relationship. “This injunction gives everyone the opportunity to take a breath and focus on the best path forward for the Marine Precinct and those who rely on it,” added Kelly. “We see this as the beginning of a process to ensure fairness and community-driven solutions.” The current users of Tauranga’s Marine Precinct remain committed to transparency and creating a more genuine and collaborative partnership with council, iwi, and the wider community. Together, they see these steps as a vital opportunity to secure a sustainable, inclusive, and community-driven future for the Marine Precinct and its stakeholders. ![]() Press Release: Lobby for Good The local marine industry has been forced to withdraw its injunction against Tauranga City Council’s controversial Marine Precinct sale due to overwhelming financial risks. The sale, made unconditional before the public was informed, has left small businesses with few options to secure their future or prevent displacement. Already facing significant legal expenses, stakeholders were warned that continuing, could result in more than $100,000 in additional costs. Worse, if the injunction failed, they risked being held liable for the new owner’s legal fees and damages, potentially amounting to millions. This stark reality exposes the severe disadvantage everyday Kiwis face in a system that allows deals like this to happen unchecked. “We’ve poured time, resources, and money into trying to protect our livelihoods, the community’s best interests, and our industry,” said Sean Kelly, owner of Pacific 7. But without access to essential documents like the purchase agreement and sale contract, which we’re still waiting on from the city council, the financial risk became too great to bear. I’m absolutely gutted.” Despite this setback, pressure on the council continues to grow. Erika Harvey, Director of Public Affairs at Lobby for Good, first called for an investigation into the Marine Precinct deal during her speech on 23rd October. Her advocacy quickly gained the support of National MP Sam Uffindell, who has been working closely with Harvey and the affected businesses. Uffindell even hand-delivered Harvey’s letter and other key documents directly to the Auditor-General, strengthening the push for an investigation. ACT MP Cameron Luxton also met with the Auditor-General, adding his voice to the call for scrutiny. “Taking from the have-nots and giving it to the have-yachts,” Luxton remarked in a press release. Now, Tauranga Mayor Mahé Drysdale has formally written to the Auditor-General, requesting an investigation into the sale. “This is a significant win,” said Harvey. “It’s encouraging to see the investigation moving forward, and we hope it will uncover deeper patterns of decision-making within the city council.” A Reckless Deal Under Investigation Harvey believes the investigation could expose how such a flawed deal was allowed to happen. “If I were the chief executive or chief financial officer, I’d be feeling concerned about what this investigation might uncover,” she said. “This isn’t just about the Marine Precinct, it’s about how public assets are being managed and whether ratepayers’ interests are truly being prioritised.” The Marine Precinct, valued at upwards of $30 million, was sold behind closed doors for just $13.9 million, essentially a "Black Friday deal." Ratepayers are now liable for an additional $29 million in upgrades to the precinct, while the buyer benefits from payment terms that allow them to make significant profits with minimal upfront costs. “This deal isn’t just reckless; it raises serious questions about governance and accountability within the city council,” Harvey added. A Call for Community Action Harvey and Lobby for Good are urging Tauranga residents to stay engaged and demand better oversight. “This investigation is a step in the right direction, but it’s only the beginning,” she said. “The community must hold the council accountable, push for meaningful reforms, and ensure deals like this are never made again.” The partnership between Harvey, Uffindell, Luxton, and the affected businesses highlights the power of communities and representatives working together. “This is what advocacy looks like, collaborating to ensure our voices are heard and driving the change we need,” said Harvey. Lobby for Good remains committed in its mission to fight for transparency, fair practices, and a council that prioritises the people it serves. Small Business Owners, MPs Rally Together To Demand Transparency In Tauranga Marine Precinct Sale13/11/2024 Wednesday, 13 November 2024, 12:05 pm
Press Release: Lobby for Good Tauranga, NZ – Calls for transparency around the controversial sale of Tauranga’s Marine Precinct are gaining momentum, with National MP Sam Uffindell and ACT MP Cameron Luxton joining Erika Harvey, Director of Public Affairs at Lobby for Good, to push for an Auditor-General investigation into Tauranga City Council. This cross-party support has brought together political leaders, small business owners, and the wider Tauranga community, to protect public interests and demand better accountability and transparency in council operations. Erika Harvey, whose organisation Lobby for Good is dedicated to bridging the gap between decision-makers and communities, believes the Marine Precinct sale highlights a pressing need for stronger rules on local government transparency. “This sale, and the lack of information surrounding it, shows exactly why we need better regulations to hold council staff and it’s leadership more accountable,” Harvey said.” “Ratepayers deserve a council that serves them, not one that makes backroom deals selling off public assets to private interests at a discount price.” The Marine Precinct sale, sold for nearly $14 million despite an assessed worth of $33 million including assets, has left many questioning the council’s handling of public resources. With ratepayers on the hook for an additional $29+ million in wharf upgrades that will benefit a private investor, the lack of consultation and accountability has fuelled widespread concern. Harvey first voiced her call for an investigation at the Tauranga City Council’s public meeting on 23 October, followed by a formal request to the Auditor-General on 2 November. Her call was soon echoed by Uffindell and Luxton, who stressed the importance of public trust and openness in local governance. A Troubling Lack of Transparency in Local Government. Harvey has been seeking clear answers from Mayor Mahé Drysdale and Tauranga’s newly elected council members, but their responses have been vague and noncommittal. This lack of openness has only fueled community frustration, especially among small business owners in the Marine Precinct, who are now left uncertain about their future access to the site. “Since 2016, I’ve spent over 2,600 hours working with council officials to protect local businesses, keep the precinct accessible to the marine industry, and stays within community hands,” Harvey stated. “This sale puts years of work and trust at risk. It’s part of a larger pattern of decisions being made without public oversight or input. Local government is funded by ratepayers, so its decisions should be fully transparent and serve the people who pay for them.” Harvey points to the sale as an example of why New Zealand needs stronger regulations around local government decision-making. “It’s almost impossible to trace how this deal came together, who was involved, and why key protections for local businesses were overlooked,” she said. “We need proper rules and oversight so ratepayers can see exactly where their money is going and ensure its spent in their best interests, not handed off to private ventures.” Legal Action to Protect Public Assets Supporting the push for transparency, local advocate Sean Kelly has filed an injunction to halt the sale until a thorough investigation can be conducted. “This injunction is critical,” Harvey said. “It gives us the chance to get clear answers and hold council officials accountable before any more irreversible decisions are made. The people of Tauranga deserve to know why public assets are being sold at a discount and why ratepayers are now facing millions in added costs to support a private venture.” A Call for Local Government Reform Lobby for Good wants to see true local government reform, focusing on greater transparency and accountability in how councils make decisions that affect their communities. Harvey argues that the Marine Precinct sale is a clear example of the need for these reforms. “The public has a right to know who is making these decisions and why,” she said. “When councils operate in secrecy, it erodes public trust and leaves us vulnerable to poor management of our assets.” Harvey’s message is resonating with Tauranga residents, many of whom are rallying around her call for change. “This is about setting a new standard for transparency and accountability in local government,” she emphasised. “If we can’t trace how a decision of this scale was made, we need to ask ourselves what other decisions might be slipping through the cracks. It’s time to reform the way councils operate, so they truly serve the communities they’re funded by.” A Movement for Change With only days remaining before the sale’s settlement date on 22 November, Harvey and her supporters are urging the council to honour its duty to the public by addressing critical questions around the sale’s financial impact, the lack of open-market bidding, and protections for local businesses. “We need rules that ensure councils are working openly and responsibly,” Harvey said. “This community is strong and determined, and we’re standing together to push for the change that’s so clearly needed.” Join the ConversationFor updates on this story, follow Erika Harvey’s advocacy on Facebook at www.Facebook.co.nz/ErikaHarveyNZ, and stay informed on the latest news. This movement is a powerful reminder that when communities stand together, real change is within reach. |
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