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Land for a new coastal park has been snatched from a developer who wanted to build tourist lodges on a headland between the pristine Te Arai and Pakiri beaches in northern Rodney.
Auckland Regional Council yesterday confirmed it would pay $4.75 million for 49.85ha at Te Arai Rd from troubled finance company Hanover Finance.
The company held a mortgage over the property, owned by Eyres Eco-Park, which only won resource consents in March for seven "eco- tourist" lodges at the point.
Last night, Eyres spokesman Brian Wadman said the property was put up for sale as a mortgagee tender "prompted by Hanover".
"The ARC has been unethical in its dealing with the company," said Mr Wadman.
"They were party to confidential information and negotiating directly with us and a few days before the mortgagee tender, they decided they would not talk to the company any longer and they dealt directly with Hanover."
Mr Wadman said Rodney District Council also helped the project's demise.
"It took six years to work its way through the Rodney District Council and the Environment Court, through the High Court and the Court of Appeal. So time has killed it."
When the project began, Mr Wadman said, it had the support of the district council, the ARC, iwi and Department of Conservation.
However, one Rodney councillor doggedly opposed it "and that started a five-year process that is just too long in the current financial climate".
Mr Wadham said the price paid by the ARC went part-way to covering the company's costs but was a low value for six years' worth of work.
He said that after the debt to Hanover was recovered, Eyres was "out of pocket in seven figures". Mr Wadman said he had worked in tourism in New Zealand overseas.
"But it's impossible to do business here - the process of the Resource Management Act, which allows a process that takes six years, is just too long. So projects just don't get off the ground."
ARC chairman Mike Lee said last night it had not acted unethically.
This was not a case of councils taking unfair advantage of the resource management process and the tough financial climate.
"We took advantage of a property for sale through a tender process.
"We paid a fair market price to the duly authorised vendor."
Mr Lee said the ARC paid more per hectare than it had three years ago for land for a new park at the southern end of Pakiri Beach.
The new park is on a headland which looks 23km down undeveloped Pakiri Beach.
It does not have a coastal frontage. That is provided by an adjoining 26ha reserve owned by Rodney District Council.
On the northern boundary, towards Mangawhai, is a pine forest along Te Arai Beach where a joint venture of the Te Uri o Hau Settlement Trust and developer New Zealand Land Trust is proposing to build a resort village.
This plan is being revised in light of 1666 objections, many of which say it will bring more people to a remote beach where it is hoped the "critically threatened" New Zealand fairy tern will resume breeding.
Te Arai Beach Preservation Society chairman Mark Walker said last night the threatened wildlife area was only a kilometre north of the land bought by the ARC.
"We see the purchase as a positive thing. The opportunity was there and the ARC took it and put it in public ownership."
He hoped an ARC-crown offer for the proposed resort would be taken up.
