Tauranga Mayor Mahe Drysdale criticised over marine precinct sale, locals demand action

By Libby Kirkby-McLeod of RNZ

Tauranga Mayor Mahe Drysdale has called the sale of marine precinct land a “s*** deal”, but residents say he is not taking the opportunity to cancel the deal.

Council commissioners announced in May the Marine Precinct at Sulphur Point had been sold, with purchaser Sam Rofe set to develop it into a superyacht destination.

Commercial boat operators who based their businesses in the precinct were dismayed by the news.

After council elections in July, marine precinct users organised a meeting to discuss the issue with the newly elected mayor and councillors.

Drysdale was strong in his criticism of the deal in that October meeting.

“It’s a shit deal, you know... we’ve inherited it.”

Tauranga mayor Mahe Drysdale. Photo / Alisha Evans

He told users the new council did not want the deal to go ahead.

“If we could get out of this deal … we would get out of this deal,” he told Lobby for Good director Erika Harvey, an outspoken opponent of the sale.

She pointed RNZ to a clause in the sale contract that said the council could cancel the sale.

It states: “If at any time before the settlement date, an injunction proceeding is issued or any court granted preventing the sale and/or registration of a transfer in pursuance of this agreement, the vendor will be entitled, by notice in writing to immediately cancel this agreement”.

Harvey said she did not understand why the council had not now stopped the sale, especially given the assurances from Drysdale at the October meeting.

“It did seem to everyone in that room that they wished that there was a way out. So, when we gave them one, and they didn’t take it, it came as a shock to all of us.”

The “way out” is the High Court interim injunction, which prevented the sale from being completed and was issued after precinct-based business Pacific7 filed judicial review proceedings.

Roger Rawlinson was at the October meeting and said the mayor made them feel he was on their side.

Tauranga’s marine precinct. Photo / Mark Mckeown

“We assumed moving forward that if there was any wiggle room or any way to get out of it, he would go out of his way to do that.”

He now felt that the mayor may not have been honest at the start.

“Because if he was consistent, he would just be what he was in that first meeting... but it appears either something has changed his mind, or he wasn’t honest to begin with.”

Drysdale told RNZ he stood by what he said in the October meeting and reiterated the current deal would not have been approved under his council.

Last week, the interim injunction stopping the sale was heard in the High Court at Tauranga, with the purchaser arguing it should be thrown out and the sale go ahead.

Drysdale said council was at the hearing, but was not fighting the injunction.

“As Tauranga City Council, we are a party and, obviously, provided information that was required to that, but we weren’t actually a party to the strike-out of that injunction,” he said.

The council was working productively with all parties to find the best possible outcome, he said.

“We have looked at every option available to us.”

The council was following legal advice but could not disclose that advice.

RNZ asked the council whether it has considered enacting the cancellation clause, or if it had taken any votes on the matter.

Spokeswoman Christine Jones said the council had sought legal advice and had legal representation in respect of the injunction and the agreement.

However, as the matter was subject to legal proceedings, it would not be making any comment.

The High Court reserved its decision after the hearing last week, and an interim order pausing the sale remains in place.

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