KEY POINTS:
The future of the $250 million Soho Square development in Ponsonby is unclear after big plans for the hole in the ground were rejected.
A panel of independent commissioners has turned down plans by Marlin Group to breach the permitted building limit on the 1.3ha site by 80 per cent and to more than double the height limit in places.
Marlin is confident it can overcome the planning hurdles by redesigning two buildings on the site, but is not commenting on its financial position at a time of grim economic conditions for property developers.
Nor would it say when work could resume on the old DYC vinegar factory site.
Strategic Finance, which in September stopped paying interest or dividends on $325 million held by 15,000 investors, has been a strong financial supporter of the Marlin Group.
The company did not return calls yesterday about its position on Soho.
The commissioners rejected Marlin's resource consent application largely because of the adverse effects - shading, dominance and amenity - two buildings would have on properties in Crummer Rd and Maidstone St.
They did not have a problem with the other three buildings on the site, and said a development with a reduction in the height and scale of the two problem buildings might make the overall development sustainable.
Soho project director Paul Hudson said the company was encouraged by positive comments in the report.
The company had lodged an appeal to the Environment Court. Before the hearing it would make a design review of the two buildings to address the issues raised, he said.
Opponents of the project welcomed the decision. The overwhelming majority of nearly 900 submissioners opposed the size and scale of the project, back from Ponsonby Rd in Williamson Ave.
Deborah White, who owns and lives above an art gallery in Crummer Rd, said the commissioners had made the right call. She hoped Marlin would build a project that complied with the district plan and the strong wishes of the community.
Local Western Bays city councillor Graeme Easte said the decision gave Marlin an opportunity to have a bit of a rethink and "proper conversation" with the community.
Marlin already has resource consent for five buildings of up to 15m and has completed groundworks for five levels of underground parking.
The company wanted to increase the floor area from 26,524sq m to 47,732sq m for mostly commercial office space, but also 499sq m of retail space and 52 apartments.
During the consent hearing in September, Marlin offered to increase the retail space to 2495sq m to provide more activity at street level.
Many submissions expressed concerns about the effect of the development on three historic buildings - Allendale House on the corner of Ponsonby and Crummer Rds, the Ponsonby Fire Station in Williamson Ave and Lord Ponsonby's antiques building on the corner of Ponsonby Rd and Williamson Ave.
But the commissioners said any adverse effects on the buildings would not reduce their value or the reasons for them being listed as historic sites.
"Any adverse effects would be minor, with the effects on Allendale House being less than those that could be created if [the current resource consent] was exercised."
SOHO UPDATE
* Marlin has resource consent to build 26,524sq m of floor space up to 15m at the Soho site.
* It sought a new resource consent to increase that to 47,732sq m for mostly commercial office space, some retail and 52 apartments.
* An independent planning commission turned down the consent, but left the door open for Marlin to redesign two of the five planned buildings.
* Marlin has appealed to the Environment Court, saying it will redesign the buildings.
* No date has been set for work to resume on the big hole in Ponsonby.
