Hubbard rebuffed on island plan

The company behind a $35 million development at Matiatia on Waiheke Island plans to press on with its plans despite Auckland City Mayor Dick Hubbard raising the idea of putting it into public ownership.

Waitemata Infrastructure director Stephen Norrie said that given the vast investment of time, effort and capital in the project "just on-selling the property does not seem a commercially attractive option".

"We believe our property at Matiatia is unique in the Auckland region and, properly developed, will provide a secure and sustainable return for decades to come."

Mr Norrie was responding to comments by Mr Hubbard this week that he planned to "explore options" with Waitemata Infrastructure after an Environment Court ruling on the project.

The company's plans have met stiff opposition from islanders, who believe it represents "Aucklandisation" of the island.

Waitemata Infrastructure, two-thirds controlled by investment bankers FR Partners, paid $3.5 million for the land in 2000 after the council bid about $1.5 million.

Since then, property prices have rocketed on Waiheke.

In an interim decision issued last week, Judge Laurie Newhook said Waitemata Infrastructure could proceed with a private plan change to develop 1ha of the 7.1ha site near the Matiatia ferry wharf as of right and seek resource consent for a further 0.85ha.

Mr Hubbard did not want to comment.