Decision clears way for Sylvia Park super-centre

By ANNE GIBSON

Kiwi Income Property Trust says its Sylvia Park development will be open for business by mid-2005, after an Environment Court ruling cleared the way for the $500 million project.

Kiwi's rivals took matters to the court in July and August, saying Kiwi should not be granted a rezoning to allow the large-scale development to go ahead.

Kiwi's plans for the 21ha Sylvia Park site include 60,000 to 75,000 sq m of shops and offices - nearly double the size of Westfield's shopping centre at St Lukes in Auckland

In June 1999, Kiwi applied to the Auckland City Council for a re-zoning of the land "to provide for the development of a new planned shopping, entertainment, office, community, retail, residential and passenger transport centre," the Environment Court noted.

The council approved the rezoning on March 9 last year.

But Westfield, which owns 11 malls around New Zealand, and Two Double Five Broadway, which owns the shopping centre on the corner of Broadway and Morrow St in Newmarket, as well as shops at Mission Bay, opposed the development.

Although the two shopping centre owners had disagreed over development in Newmarket, they put aside their differences and joined to oppose Kiwi.

They argued against the establishment of a large new retail area at Sylvia Park.

The Environment Court heard evidence about increased traffic flows in the area and the effects on surrounding suburbs such as Panmure, Otahuhu and Pakuranga.

"Westfield acknowledged that by the nature of its business, it would be in trade competition with a business centre established at Sylvia Park," the court said in its written ruling.

"It accepted that in deciding the reference, the court is prohibited from having regard to trade competition."

Westfield's case was mainly focused on "claimed adverse effects on communities" served by existing shopping centres and the loss which the centres would suffer because of Sylvia Park, the court noted.

Westfield called nine witnesses, experts on planning, retail market analysis, social assessment, traffic and transport and economics.

It also called witnesses from business associations in Panmure and Otahuhu.

Two Double Five also opposed Kiwi's plan change for the area.

It did not call witnesses, but said Sylvia Park was contrary to the policy of the district plan.

Because of this, it said, the retail component of the park development should be more restricted.

Although not listed as appellants, two other parties which had made submissions to the Auckland City Council on the development were also heard in the Environment Court.

The Newmarket Business Association opposed Sylvia Park, as did the Ngati Maru Iwi Authority.

The authority claimed that Ngati Maru and other tribes of the Marutuahu Confederation had a "special relationship with the subject land and claimed that it contained special sites having metaphysical value to them for which Marutuahu have kaitiaki responsibilities," the Environment Court said.

But the court determined that all the appeals be disallowed, and ruled that Kiwi should be allowed to have its land rezoned.

Richard Didsbury, joint managing director of Kiwi, was pleased with the decision yesterday.

"I am not surprised with the result, as we worked closely with Auckland City Council over a long period," he said.

"We are pleased that the council's decision has now been vindicated."

International architectural firm Gensler will develop a master plan for the site, discussions with key tenants have revealed "strong interest" in the concept. and Sylvia Park would be open in mid-2005, Mr Didsbury said.

The site is now occupied by Second World War storage sheds, built for American armed forces.

Kiwi's lawyer, Russell Bartlett, said the development would transform the area, and the decision was in line with the city's growth strategy and planning objectives.