The Y at 149 Greys Ave also fronts Vincent St. Photo / Google Streetview
The Y at 149 Greys Ave also fronts Vincent St. Photo / Google Streetview
Auckland Council must pay $803,000 costs after the City Rail Link compulsorily took land underneath a privately owned inner-city site for a tunnel in the $5.5 billion project.
The Land Valuation Tribunal ruled on costs in the dispute over a portion of land beneath a property, theYMCA site at 149-157 Greys Ave, not far from the CRL’s new Karanga-a-Hape Station.
That property also fronts Vincent St where exterior branding is for low-rise fitness centre The Y Auckland City, which is beside the multi-level YMCA Hostel, 20 Pitt St.
Property owner YMCA North Inc argued it deserved $18 million 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 about the amount it had to pay. YMCA North Inc was awarded about $800,000, and now has won costs for a further $803,000.
The dispute was over City Rail Link running beneath part of this YMCA property between Vincent St and Greys Ave in Auckland. Photo / Google Streetview
The council and the Government are jointly funding the CRL.
Tribunal chairman Judge Jeff Smith issued his decision on May 1, ruling under the Public Works Act for the $803,000 costs to be paid to YMCA North Inc.
The judge said the costs were after a challenge to land acquired and covenanted for the CRL tunnel.
YMCA North Inc was represented by Simon Cogan and Lloyd Berryman, of Quay Chambers.
The judge referred to an earlier May 2022 Land Valuation Tribunal decision that fixed the total compensation payable to YMCA at $2m, but said both YMCA and the council appealed that, so the amount was reduced.
On appeal, YMCA North Inc won about $800,000 in compensation, so the costs decision is in addition to that.
Last year, the High Court heard appeals from YMCA North Inc as well as Samson, owned by the wealthy Friedlander family.
In that High Court case, Davey Salmon KC argued why Samson wanted more compensation for its land.
In compulsorily taking subterranean land under the Public Works Act, restrictions were imposed from about 5m below the ground surface that could compromise any development of the site, he argued.
Excavation, foundation, piling or any work within the covenant area must have the council’s agreement in advance, Salmon argued then.
The City Rail Link has moved beyond the civil stage and hundreds of kilometres of cables are being laid to run the stations and trains. Photo / Corey Fleming
Essentially, that made it hard for the development of sites, sinking foundations or piles or digging down below the ground for any new buildings, Salmon argued.
YMCA argued 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 in that High Court case.
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 to be able to be built on its big site, so close to the motorway network and Spaghetti Junction.
The new Karanga-a-Hape Station under construction. Photo / Michael Craig
The YMCA is now prohibited from carrying out work at a certain level below ground without written consent.
In the newly published decision, Judge Smith referred to the YMCA’s case, which was that the council “did not make every endeavour to negotiate in good faith. Rather, it made a series of low-ball offers ranging between $216,903.00 and $297,796.00, seemingly unsupported by any valuation”.
But the council submitted the allegation that it did not make a formal compensation offer and therefore did not comply with its obligations was false and misleading. It disputed that it had made a low-ball offer.
The judge ruled the council should pay YMCA North Inc costs of $803,000. That is on top of an award from last year in the High Court of $800,000 compensation.
The CRL is due to open in early 2026.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
