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Home / Business

Decision reached in City Rail Link lease dispute

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
23 Nov, 2015 10:30 PM3 mins to read

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The Environment Court has ruled on a dispute between landlords and Auckland Council/Auckland Transport. Photo / Jason Dorday

The Environment Court has ruled on a dispute between landlords and Auckland Council/Auckland Transport. Photo / Jason Dorday

The Environment Court has issued a decision on a condition in an agreement involving the $2.5 billion City Rail Link.

Principal Judge Laurie Newhook with two environment commissioners was asked to decide on wording after a dispute between Auckland Transport and Auckland Council versus influential landlord Tram Lease.

At issue are the negative effects of the CRL works on Tram Lease's commercial premises at 32 Normanby Rd, Mt Eden.

Auckland Transport is not intending to buy that property but ramping works must be carried out there for three to four weeks, reducing the number of on-site carparks.

READ MORE:
• Court refuses landlord's City Rail Link appeal
• MediaWorks eyes rail link compensation
• Landlords fight rules for rail link

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CJM has the head lease on buildings tenanted by various businesses including stationery and furniture distribution and retailing business OfficeMax.

A number of large businesses went to the Environment Court over the CRL.

These businesses own properties along or near the route and were concerned about trouble caused by the tunnels being dug including disruption to businesses and tenants, vibrations, noise and many other negative effects.

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All were named in the latest decision and include:

• Tram Lease which owns Mt Eden's 32 Normanby Rd, the property at the centre of the latest decision;

• Mediaworks (TV3's owner) at 3 Flower St in Eden Tce;

• International luxury hotel Stamford Plaza Auckland on lower Albert St.

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• Neighbouring Stamford Residences' Owners Corporation which owns the properties above the hotel;

• NZX listed Precinct Properties which owns a group of buildings on the waterfront including Downtown where it plans to build a $550 million 38-level tower, with the CRL tunnels running underneath.

• Samson Corporation and Sterling Nominees which owns many properties affected by the CRL including 251 - 253 Karangahape Road; 259 - 281 Karangahape Road; 8 - 12 Beresford Street; 30 Mercury Lane (part of 2 Canada Street); 161 - 165 Symonds Street; 167 - 169 Symonds Street (part of 30 St Benedicts Street); 30 St Benedicts Street; 193 Symonds Street; 195 - 199 Symonds Street; 201 Symonds Street; 203 - 205 Symonds Street; 207 - 209 Symonds Street; 211 - 213 Symonds Street.

Auckland Council and Auckland Transport proposed a clause in the agreement which said that the authorities would consult with sub-lessees with the land owner and head lessee present, unless the sub-lessees requested otherwise.

See an Auckland Transport Video about the CRL here:

But Tram Lease and CJM wanted the clause to say that the authorities would consult with sub-lessees only in the presence of the landowner and head lessee.

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"In light of this disagreement, the parties requested a determination be made as to the most appropriate wording," the written decision said.

The court decided on the Auckland Council/Auckland Transport wording, saying that was fairer to sub-lessees.

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