Base buyback could cost $40m

By WAYNE THOMPSON

Auckland City Council may have to pay between $41 million and $56 million to take over ownership of America's Cup bases at the Viaduct Harbour.

The city wants the Halsey St property - known as Syndicate Row - to achieve its aim of a marine events centre in the Viaduct Basin.

Officials are working on a memorandum of understanding about the takeover with the site's owner, America's Cup Village Ltd (ACVL), which is a subsidiary of publicly owned Infrastructure Auckland.

But Infrastructure Auckland's electoral college - which consists of the mayors of seven local councils and the chairman of the Auckland Regional Council - has objected.

After hearing a proposal from city officials and Mayor John Banks, the college supported the city acquiring the land for America's Cup purposes.

But the meeting's record shows a resolution saying that the land be used for the public good in perpetuity and vested in the city "after an appropriate exchange of value".

The city council is challenging the resolution.

The chairman of the college, Manukau Mayor Sir Barry Curtis, said the resolution was going back to the next meeting for clarification.

"There is a view afoot that the land should change hands at no cost to Auckland City Council and that, of course, would mean many of the local authorities of the region would effectively be subsidising the sale."

The Auckland Regional Council decided unanimously on Monday it would support the transfer only if the use of the land was protected for the public good and after an appropriate exchange at present market value.

ARC chairwoman Gwen Bull said the land's transfer to Auckland City for nothing would mean less money for Infrastructure Auckland to grant for badly needed transport projects.

ARC member Craig Little - who was chairman of Infrastructure Auckland's predecessor, the Auckland Regional Services Trust - said the trust spent a substantial amount of public funds to build the Cup base.

The intention was that when the buildings went, the reclaimed land was available for the ratepayers of the region to get their money back.

Support for Auckland paying the fair valuation for the land also came from Rodney Mayor John Law, Papakura Mayor David Buist, Franklin Mayor Heather Maloney and North Shore Mayor George Wood.

Mr Banks said the view that land must be transferred at market value was "somewhat neanderthalic".

"Auckland owns most of the shares in Infrastructure Auckland and it doesn't make sense for us to be paying money to ourselves.

"But there could be an argument that Auckland City pays the difference between our shareholding and the total shareholding."

Infrastructure Auckland chairman John Robertson said the land's market value had not been defined.

Infrastructure Auckland forecasted a receipt from the ACVL sale in its long-term funding plan in a range of $41 million to $56 million but that included more than just the wharf and base sites.

The story so far


1996: The Auckland Regional Services Trust pays for reclamation of land at Halsey St for the America's Cup bases and marina.

1998: The trust's successor, Infrastructure Auckland, takes over ownership of the company, America's Cup Village Ltd.

March 2003: Infrastructure Auckland says it may sell the site for $41 million and use the money for regional transport and stormwater projects.

May 2003: Auckland City Council proposes to take over ownership of the land.

June 2003: Neighbouring councils say Auckland City should pay for it.