At a press conference with Auckland City Mayor John Banks and city councillor Scott Milne yesterday, Sir Geoffrey said: "The law is clear. If Auckland City Council wishes to secure those marinas, they will have to pay for them and they will have to pay market rates."
The council is now eyeing not only the marinas but a number of prime waterfront sites, including Hobson, Princes and Queens wharves and the Wynyard Wharf "tank farm", west of Viaduct Harbour. All are port company assets.
The proposal comes just a day after Mr Banks and Manukau Mayor Sir Barry Curtis revealed the preferred route for the 27km, $4 billion eastern corridor.
Yesterday, Mr Banks said the council would bid for the entire western half of the waterfront, from Queens Wharf at the Ferry Building to the small park west of the harbour bridge. The cost, depending on which properties were bought, could be between $100 million and $400 million.
The waterfront is just one of several big property purchases the city council is considering.
The property plan will be put to councillors at a special meeting tomorrow
If it gets the green light, as seems likely, an "enterprise board" made up of councillors, council staff and outside appointees "with relevant expertise" will be set up.
The plan will include "mixed use" of retail, residential and public open space.
Announcing the plan yesterday, Mr Banks invoked the "Father of Auckland", Sir John Logan Campbell, comparing it to the gift of Cornwall Park to the city 103 years ago.
The waterfront sites were "gilt-edged real estate" Mr Banks said.
"We cannot miss this opportunity to stop this prime land simply being flogged off ad hoc to the highest bidder."
The council was not aiming to become a property developer but should secure waterfront properties for "sensible development".
The city's net debt was "zero" and it had $4 billion in private property assets, Mr Banks said.
The waterfront working party's report gives a number of financing options. They include sales of land the council does not want, selling its Auckland International Airport shares, valued at $254 million, and a rise in rates.
Mr Milne, chairman of the working party, said a bid would be filed by the March 31 deadline but there would be public consultation.
The "conditional on consultation" bid meant the council could not do a deal with rival bidder the Royal New Zealand Yacht Squadron, which has formed a consortium to buy Westhaven.
Squadron commodore Bill Endean was unimpressed. "The last thing we want is a bidding war with our own council over Westhaven."
Rt Hon Sir Geoffrey Palmer:
Opinion for Auckland City Council on Certain Assets Vested in Ports of Auckland Limited
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