Mayor's plan fails to tempt developer

The company behind a $35 million development at Matiatia on Waiheke Island plans to press on with its plans despite Auckland City Mayor Dick Hubbard raising the idea of putting it into public ownership.

Waitemata Infrastructure Ltd director Stephen Norrie said that given the vast investment of time, effort and capital in the project to date "just on-selling the property does not seem a commercially attractive option".

"We believe our property at Matiatia is unique in the Auckland region and, properly developed, will provide a secure and sustainable return for decades to come." Mr Norrie was responding to comments by Mr Hubbard this week that he planned to "explore options" with Waitemata Infrastructure, following an Environment Court ruling on the project.

The company's plans have met stiff opposition from islanders, who believe it represents "Aucklandisation" of the island.

Waitemata Infrastructure, two-thirds controlled by investment bankers FR Partners, paid $3.5 million for the land in 2000 after the council bid about $1.5 million. Since then, property prices have rocketed on Waiheke.

In an interim decision issued last week, Judge Laurie Newhook said Waitemata Infrastructure could proceed with a private plan change to develop 1ha of the 7.1ha site near the Matiatia ferry wharf as of right and seek resource consent for a further 0.85ha. The company wanted to develop 1.2ha as of right and be able to apply for a further 0.85ha.

Mr Hubbard yesterday said through a spokeswoman that he was setting up a meeting with Waitemata Infrastructure and did not wish to comment until he had talked with the company.

"Any purchase would have to be on appropriate terms taking into account that it is ratepayers' money," the spokeswoman said.

Brian Griffiths, chairman of the Community and People of Waiheke lobby group, said islanders strongly favoured the council buying the land.

He said islanders had reservations about the bulk and scale of Waitemata Infrastructure's plans and thought the development was out of character with Matiatia.

Mr Norrie said he hoped all the parties could work together to complete the process required by the court so the best possible development at Matiatia could start as soon as possible.

"As Mayor Hubbard noted ... the property is very strategically located, a key consideration when Waitemata acquired the property from its Japanese owners in 2000," Mr Norrie said.

Judge Newhook has given the parties until the end of next month to reach agreement on several outstanding issues, such as legal and governance issues of the private plan change. If they do not agree, the judge will rule on the issues.