"Land that's apparently worth $30,000 being sold for $1 is not prudent financial management," said Matthew Casey, QC.
"And now I'm concerned about the secrecy that surrounds all of this. Council's position, in this case, has been to withhold information to avoid scrutiny in its dealings over public land."
Casey described Richmond Villas owner Colin Parker and his wife as major investors in the community and Thames-Coromandel District.
The Parkers have just completed a three-storey apartment block on their site on reclaimed land that is not subject to flooding - an overall $30 million investment on top of his existing villas.
He said TCDC should retain ownership of the reserve land and reinstate it as local purpose reserve rather than sell it and risk flood protection work not being done.
He told councillors he's gravely worried about the flood risk to Thames. On January 5, 2018, a storm surge over-topped the seawall.
"Where the river bends in the Kauaeranga River is the most dangerous part. It's really serious, this stuff. All I want is protection around it," he urged councillors.
The TCDC put a flooding hazard notice on the Richmond Villas title in December 2018 after granting consent for the apartment block the previous year.
Parker wants to buy the land to extend flood protection walls he's built around the rest of the land on which retirees reside.
But he understood the land had been offered for sale to Ngati Maru for $1 and in exchange for the right to gain access to a walkway on the esplanade along this stretch of coast.
The public access provision has seemingly since been removed, Casey said.
"The land should not be disposed of, if it is, it should be offered on the open market so that Richmond and others have the opportunity to bid for the land," said Casey.
"It's our understanding that council proposed to sell the land for $1. That's a gross undervalue and fiscally irresponsible.
"These matters should not be considered in secret. Both Richmond and the public have a right to know what's going on."
Paul Majurey, for Ngati Maru, joined the meeting by video link to speak. He said large parts of Thames were gifted for schools, a police station, the hospital and other reserves.
"In 1877 Thames County and Ngati Maru signed an agreement that Ngati Maru are not now or in any time in the future to pay rates, with protection for waahi tapu and cultivation. This reneged a few years later, the courts ruled against Ngati Maru on a legal technicality, and council has tried to levy rates against Ngati Maru for 130 years.
"In recent years council have agreed to try to resolve this issue over this historical rates agreement and is hopefully not too far away."
Between 1932 and 1947 the iwi's ownership in Thames fell from 163 to 31 properties because of rates demands, Majury said.
Ngati Maru bought Thames' Kiwi Rail holdings, Danby Field and some land at Shortland Wharf as part of a 2009 Crown redress package.
"Ngati Maru plans to invest heavily here, to activate a mixed-use precinct of food and beverage and housing. That is what led to the proposal to acquire the land in question in 2016. Ngati Maru has invested significant time and money for the planning of this land.
"We do not know in 2020 this matter is being reconsidered. Ngati Maru does not renege on its agreements and we do not expect council is going to renege on its agreements either."
He said commercial negotiations are not done in public and Richmond Villas should go to the Ombudsman if it had complaints.
Mr Casey said a report to council in December 2016 suggested the land was valued at $12,500 and Ngati Maru had offered to buy the land for that price.
The report suggested that despite the land sale not being contemplated in TCDC's Long-Term (10-year) Plan, it should be sold to Ngati Maru for $1 in exchange for providing access to the esplanade walkway.
"The land is worth considerably more than the valuation which we consider was provided by Ngati Maru. Richmond Villas has offered $30,000. Richmond has already paid for a wall around most of its land and wants to continue that, and the reserve land is suitable for that purpose."
Mr Casey said Parker only found out about the sale from a small notice in the Hauraki Herald which advised of the intention to revoke the reserve status and sell the land.
Council did not consider offering the land for public sale or give Richmond the chance to protect its land from flooding, Casey said.
After objection by Richmond Villas, meetings were held in secret and staff were resolved to negotiate further with Richmond and Ngati Maru: "however there was no engagement with Richmond [Villas], no negotiation and no proposal let alone any agreement."
A report based on "incomplete information" was presented to council following this, Casey said, with direction to sell the land for $1.
TCDC then sought Ministerial consent to revoke the reserve status, as is required for sale of public reserve land.
Richmond Villas wrote to the Conservation Minister asking that the land be retained for flood protection and in turn, the council received a response from the Department of Conservation.
"DOC's email is not included in your agenda report so I've attached it ..." said Mr Casey.
He said Richmond had been refused a copy of TCDC's Property Manager report. "We assume it's addressing the matters raised by the Minister of Conservation's letter but we just don't know. We're coming to you with a couple of hands tied behind our back."
Later, Councillor Terry Walker asked Majurey if he could see Richmond Villas was just trying to protect its investment.
Majurey responded: "For any development, Ngati Maru wishes to undertake, we have to go through the Local Government Act and Resource Management Act. All matters required would be addressed by Resource Management Act and go through council."
Council was then addressed by John McEnteer and Leanne Ngamane representing Ngati Tamatera on another agenda item for TCDC to revoke the reserve status at a strip of land bordering Ngati Tamatera co-governed land further up the Thames Coast, at Tapu.
Ngati Tamatera "lived, breathed and died" on the land at Tapu which was set aside for the iwi's cultivations and burial grounds, said Ngamane.
"It's serendipitous that the previous speakers were talking about coming here with their hands tied behind their back - I feel worse, I come here with no information at all," said McEnteer.
The iwi had also seen a notice in a newspaper and had no contact from TCDC.
"Last night I couldn't get the agenda paper to get this paper - nothing - we don't even know what on earth your advice is.
"The concern for us is the whole lot of this area is an area of considerable importance to Ngati Tamatera.
"If you're going to take public land and take the reserve status off it, you have got responsibilities under the Reserves Act to be considering your Treaty partner.
"We would've thought and it makes good sense to talk to us and offer it to us. You might be going to sell it, you might be going to sell it for $1, who knows? By hook or by crook if we have to go to the higher authorities to find out these decisions, we don't want to be in a situation where you've got egg on your face.
"We're earnestly trying to have good relations but hey if you're going to take parts of the land and say it's not going to be the council's, fine. But you offer it back to us. You're messing around in a really important place - that's Ngati Tamatera's up the Thames Coast, and it's not a good way to do it."
Mayor Sandra Goudie said the item would be discussed. "My understanding is that due process has been followed however there will be further discussion around that in public excluded."
