The Tribune development's atrium is at the centre of a dispute between the property developer and tenant that could go as far as the High Court. Photo / Warren Buckland
A baker says an argument about where he could place chairs for his customers has sparked a relationship breakdown with his landlord at an upmarket central Hastings development.
The heat in the now-ongoing dispute at the Tribune development, hailed during construction as a space that couldhelp reinvigorate the city, has now risen to the point where it could end up in the High Court.
Scott Wynands, owner of OMGoodness Specialty Breads, says his tenancy at Tribune on Queen Street East has been fraught with issues since he moved into the premises in November 2021.
Wynands said when he signed the agreement to the lease with Hansen Property Group, he understood the atrium of the Tribune building was a common space and his seating in the atrium would be accessible at all times when it was not otherwise in use for private events.
In a November 2021 email seen by Hawke’s Bay Today, understood to be fromRob Hansen of the Hansen Property Group to Wynands, Hansen described the atrium as a common space for the use of all tenants, but emphasised that it was controlled by Hansen Property Group and having tables and chairs in the space was “a privilege, not a right”.
“We see the outside laneway as the outdoor eating area for the OMG cafe and Tu Meke Don - that is your front yard,” Hansen wrote.
“There is no provision in your lease that you have any rights over the atrium.”
Wynards says he and his landlord clashed several times about the terms of OMGoodness’ use of the atrium space before Wynands was informed earlier this year through a letter from a lawyer for Hansen Property Trust that it intended to physically remove his furniture from the atrium.
Wynands said the day after the letter from the lawyer, Hansen Property Trust moved the furniture into a large pile near the front doors and placed large planter boxes in the area.
Wynands said he then placed some furniture back and moved the planter boxes around because it was “completely impractical to operate with them in place”.
The furniture was then removed a second time and the planters were fastened with padlocks, he claimed.
For a third time, Wynands placed his furniture back.
He said he then received a Property Law Act Notice (PLN) to cancel the lease because of his furniture in the atrium.
Wynands applied to the District Court for relief from the cancellation notice.
A lawyer on behalf of Hansen Property Trust advised the judge that Hansen Property Trust was filing another application in the High Court for the cancellation of lease in respect to another PLN relating to unpaid rent.
The lawyer confirmed in writing through a memorandum that Hansen Property Trust withdrew the PLN relating to the use of the atrium and the case was dismissed as there was no longer a basis for the application proceeding even if the court was satisfied it had jurisdiction.
Wynands said the situation had become impossible to operate a business in, and he had decided to stop rent payments until the situation had been rectified through a court process.
He said he had since paid his last month’s rent, but he was still in arrears and had had to cancel multiple upcoming bookings because of the uncertainty.
“Our tenancy has been fraught with delayed timelines, poor communication ... severe animosity ... and refusal to attend the legally sanctioned mediation or arbitration channels to resolve disagreements,” Wynands said in a statement to Hawke’s Bay Today.
“We have managed to continue to grow the wholesale operation and create a popular cafe destination despite the setbacks, however ... an environment [has been created] that is impractical to operate a business in and is unnecessarily stressful for everyone concerned.”
Rob Hansen was approached by Hawke’s Bay Today for comment but declined, opting to release a statement instead.
“We can confirm that there is an application to the High Court for non-payment of rent,” the statement said.
“We are very proud of the Tribune development, the community of 25 businesses that operate there and the positive impact it has had on the Hastings CBD.”
When asked if he would respond to specific claims from Wynands if they were put to him, Hansen said he would deny what Wynands was claiming.
James Pocock joined Hawke’s Bay Today in 2021 and writes breaking news and features, with a focus on environment, local government and post-cyclone issues in the region. He has a keen interest in finding the bigger picture in research and making it more accessible to audiences. He lives in Napier. james.pocock@nzme.co.nz