City Rail Link chief executive Dr Sean Sweeney and Auckland Transport executive Mark Lambert provide an update on the progress of the Auckland rail project.
Video / Dean Purcell
YMCA North Inc wanted $18 million compensation for Auckland Council compulsorily acquiring land under its valuable city site for the $5.5 billion City Rail Link but the council only offered it $262,000.
The amount of compensation due under the Public Works Act for an underground portion of YMCA’sland in Greys Avenue being used for the 3.4km underground rail project was at the centre of three judicial hearings in the last year: first in the Land Valuation Tribunal, then two High Court cases.
A view inside the City Rail Link project. Photo / City Rail Link
YMCA argued that it deserved the $18m compensation for the council taking underground land beneath a 1684sq m portion of its site, restricting future apartment development opportunities with big subterranean car parking.
But the council disagreed and said YMCA North was only due to be paid $262,000.
As this country’s largest infrastructure transport project nears completion with most land disputes sorted years ago, the High Court last week issued a ruling in the latest round of the YMCA case.
CRL is due to open around 2026.
At issue is land beneath part of the YMCA site at 149-157 Greys Ave, not far from the CRL’s new Karanga-a-Hape Station. The council’s website showed the rating value on that 4320sq m site of nearly a half-hectare is $27.5m.
Dissatisfied with the council’s compensation offer, the YMCA last year took its case to the Land Valuation Tribunal but only won $2m there in a decision issued last May 24.
Unhappy with that, the YMCA’s legal team headed by Davey Salmon, KC, then took matters to the High Court at Auckland this year in a case heard by Justice Ian Gault delivered on May 31. That was the second hearing.
That second case was heard with a compensation call from one of Auckland’s wealthiest landlords the Friedlanders’ Samson. There, Salmon argued that the YMCA deserved far more than what the council offered.
Davey Salmon, QC, represented YMCA. Photo / Peter Meecham
He put the case for why the landowner was battling for more compensation.
In compulsorily taking that slice of YMCA subterranean land under the Public Works Act, restrictions were imposed from about 5m below the ground surface which could compromise any development of the site.
The YMCA is now prohibited from carrying out work at a certain level below ground without written consent.
The new station Karanga-a-Hape Station under construction last year. Photo / Michael Craig
Excavation, foundation, piling or any work within the covenant area must have the council’s agreement in advance, Salmon argued.
Essentially, that makes it hard for the development of the YMCA site, sinking foundations or piles or digging down below the ground for any new buildings, Salmon argued.
YMCA argued that its land could best be used for an apartment development. That would be the highest and best use of the site where about 329 units over 11 levels could be built.
Crucially, up to 455 car parks in a six or seven-level basement would be needed to support a project of that size to make it meet market expectations, it said.
But that “highest and best use” of its land was now severely compromised as a result of the acquisition and covenant.
The absolute prohibition on encroaching into the YMCA below-ground land taken for CRL means it can’t have more than three basement levels to bring only 246 car parks. That would be well below what the market would demand for the development able to be built on its big site, so close to the motorway network and Spaghetti Junction.
A flooded City Rail Link tunnel. Photo / City Rail Link
But the decision said the evidence did not indicate that a project with up to 455 car parks was “financially feasible”.
Digging that far down could cost $40m and take six months or more, meaning the maximum car park option - given the expected selling price of apartments - was not feasible.
Justice Gault did not find the evidence indicated any potential, legally permissible and financially feasible design that was impacted by the prohibition on the YMCA’s land.
At the most, the YMCA should get $848,000 - less than the $2m award from the tribunal.
Unhappy with that, Salmon then sought the High Court’s permission to appeal Justice Gault’s May decision to the Court of Appeal.
Justice Gault issued his decision last Thursday, denying that because the appeal was not justified. That was the third hearing.
“While I accept the result is of significant importance to YMCA given the much higher amount claimed, both the tribunal and this court – with the benefit of expert valuers – have identified an absence of market evidence to support anything close to that amount,” the judge ruled on the claim.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
