Tauranga council to consider co-ownership with Māori of $16m CBD land

Site A is proposed to be part of a co-ownership deal between Tauranga City Council and local Māori. Image / TCC

A core chunk of Tauranga CBD real estate worth $16 million is being considered as part of a co-ownership deal with mana whenua that could see the city council lease the land from a joint council-controlled organisation for $1.

Tauranga City Council will meet today to decide on a potential partnership with Otamataha Trust - a trust that oversees property on behalf of Ngāti Tapu and Ngai Tamarawaho.

If successful, the deal could see the land between Wharf St, Willow St, Harington St and Durham St - known as Site A of the city's civic precinct development Te Manawataki o Te Papa - transferred as part of a perpetual peppercorn lease.

However, this would only happen following public consultation.

A bird's eye view of the land that will be the heart of Tauranga's future civic precinct, showing the council, library and BayCourt theatre buildings in 2001. Photo / Jimmy Joe

In his report to the council, strategic property team leader Phil Kai Fong said the council wanted to ensure the development "respects and reflects the significant history and importance of the area to mana whenua".

"The relationship with mana whenua will be pivotal to the success of many of the outcomes to be achieved on the city precinct site."

A non-binding accord has already been signed by the council and trust on July 11. The accord is considered to be an initial step to recording the collaborative partnership approach and intention of working together toward "mutually beneficial outcomes for the community".

How the future library and community hub, exhibition and museum buildings could look in the heart of Tauranga's CBD. Image / Supplied

The accord also set out the intention to implement co-ownership arrangements for the land.

The co-ownership was expected to be done through the establishment of a council-controlled organisation that would hold ownership of the underlying land and enter into a ground lease with the council. The council would be responsible for the construction of buildings on that land and retain ownership of those buildings.

The land would be transferred to the council-controlled organisation for a nominal sale price of $1, subject to a perpetual peppercorn ground lease back to the council.

Kai Fong said such a move would "provide a contemporary reconciliation to a long-standing grievance".

"It also enables a wide range of benefits to be realised by the community as a whole, including securing uncontested use of the land for future generations, and ensuring long-term certainty for the community in terms of public use."

The matter stems from decisions already made in March 2020 by the former council but which were interrupted by the removal of councillors and the appointment of a commission.

The meeting begins at 9.30am and will be held at Bay of Plenty Regional Council chambers and livestreamed via the city council's website.