Piha society must pay for failed cafe case: council

Waitakere City Council has received only a $500 "goodwill" payment for the legal costs run up during the Piha Cafe court case.

In August, the Environment Court ordered cafe opponents Protect Piha Heritage Society to pay $5000 towards the council's costs of defending the society's appeal against resource consents for establishing the cafe.

The court also ordered the society to pay $10,000 to Preserve Piha, which built the cafe and opened in October.

On Tuesday, the council's regulatory committee was told that the society's cheque for $500 left $100 in the society's bank account.

Council legal services manager Denis Sheard said the society's accounts confirmed that the society remained insolvent and was unable to pay its debts in full.

Deputy mayor Penny Hulse said the committee confirmed it wanted payment in full and directed the chief executive to make an arrangement for the costs to be paid in full over time.

She could not recall any case where the council had used its discretion to waive costs ordered by the court against a community group.

"It cost Waitakere ratepayers more than $80,000, so I think we are taking a lenient approach."

Cafe spokesman Andrew Higgs said the cafe was still in discussions with the society with the aim of settling the debt.

The society's 70 members include Sandra Coney, author of Piha historical books and chairwoman of the Auckland Regional Council parks and heritage committee.

But its spokesman, lawyer Peter Hosking, said the society's membership was drawn from all ages and some were better off than others. "We are just an average community group".

He said the society was incorporated and individual members were not responsible for the debts of the society.

"That's not to say we can't do fundraising among our members to work our financial situation through."

The society had indicated goodwill by paying $500 on account to the council and now that the council had passed a resolution to back up its chief executive, would sit down with council staff and sort out a schedule of repayment.

Mr Higgs said the Piha Cafe had a "fantastic" first summer of trading.

However, conditions on its resource consents were "onerous" for a business to comply with. These included a ban on serving alcohol and preparation of food in a kitchen on site and limits on the number of seated patrons, opening hours and noise.