By WAYNE THOMPSON
The Auckland City Council has bought the Westhaven and Hobson West marinas for $46 million from the Government after settling some commercial loose ends in their deal.
The Government successfully bid $54 million last month to ensure the marinas remained in public ownership.
This arrangement was on the understanding that
the council would then buy the marinas for the council's original tender price.
But the council delayed its decision on the purchase at its last meeting, on May 13, blaming unresolved commercial issues rather than the influence of opponents.
The final purchase decision was made by the council's waterfront working party.
Chairman Scott Milne said the city would officially take over the marinas from Ports of Auckland on Tuesday and it already had interest from a number of parties in managing the marina business.
The purchase money would come from borrowing instead of selling assets. Loan costs would be repaid from marina income, including leased buildings.
Mr Milne said the initial study of the marina business books indicated it would break even and require neither rates income nor rises in berth rentals.
"Prices will be set by the market. There's no way we want to price boaties out of their marina."
But Westhaven would still be run as a commercial operation.
Buying the marinas is part of a new council plan to become more actively in property, including the purchase of key waterfront areas.
Under its "Development with Vision" plan, the council will set up a development enterprise board.
Its functions could include buying land and selling or leasing it to developers with conditions to ensure "quality" development.
If the council bought more land, said Mr Milne, it could be paid for by selling assets such as shares in Auckland International Airport, valued at $250 million.
