Public may win prime Waiheke Island site

A public buyout of prime coastal land on Waiheke Island is on the cards only days after a $170 million bid to renationalise Ports of Auckland to develop the city's waterfront for public use.

Auckland City Mayor Dick Hubbard last night told the Herald he would be talking with Waitemata Infrastructure Ltd about its 7.1ha land holding on the valley floor at Matiatia, which the Environment Court has decided can be developed but on a smaller scale than the company wanted.

Mr Hubbard, who has told islanders he favoured buying the land, said he would explore options with the company now that the court had issued its interim decision.

"Not only is the Matiatia land strategic for transport but it ... is also the outlet for the limited sewage scheme that comes from the village of Oneroa," Mr Hubbard said.

The mayor has the backing of the Waiheke Community Board and Hauraki Gulf city councillor Faye Storer, who said buying the Waiheke land was no different than Friday's bid by Auckland Regional Holdings, a unit of the Auckland Regional Council, to make a full takeover bid for Ports of Auckland.

Waitemata Infrastructure director Stephen Norrie said the court decision "provides a framework for a commercially viable development to commence". It is understood the company was open to a council offer.

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 Island. In 2002, the company unveiled a $35 million plan for a village of apartments, restaurants, bars and hotel facilities with the backing of former mayor John Banks.

The plans met stiff opposition from islanders, who saw it as the "Aucklandisation" of their slice of paradise.

In his interim decision, Environment Court Judge Laurie Newhook said Waitemata Infrastructure should be allowed 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. The judge said there was sufficient water for a 1.2ha building space but he was "not certain" it would cope with the wastewater discharge, which relied upon recycling at this level. It would be better to limit development to 1ha at the present time, he said.

Mr Norrie said the decision had taken a "conservative view to ensure that any development does not exceed the sewage and water constraints which exist for all property owners on Waiheke Island".

Claude Lewenz, of the Community and People of Waiheke lobby group, said it was safe to say Waitemata Infrastructure did not win from the decision and a stretch to say Waiheke had won.

The best solution would be for Auckland City Council to step in, buy the land, set the planning rules in conjunction with the community and re-sell the land for private development, he said.

Judge Newhook has given the parties until the end of May to reach agreement on several outstanding issues, such as legal and governance issues of the private plan change. If they could not agree, the judge said he would hold a further hearing and rule on the issues.

* The story so far

2000: Waitemata Infrastructure (WIL) buys the 7.1ha 'Harbour Master' property at Matiatia for $3.5m.

2002: Auckland City Council accepts WIL's private plan change to develop 2.9ha as of right.

2003: Council rejects plan change on advice of planning commissioners. WIL appeals decision to Environment Court.

2004: WIL reduces scale of development to 1.2ha as of right and permission for up to 1.85ha.

2005: Environment Court interim decision says WIL can develop 1ha as of right and permission for further 0.85ha.