Jessie Wong, Mark McGuinness and Brooke Roberts were all original members of Tory Whanau's business advisory group. Composite photo / NZME
Jessie Wong, Mark McGuinness and Brooke Roberts were all original members of Tory Whanau's business advisory group. Composite photo / NZME
Wellington Mayor Tory Whanau set up a business advisory group last year to give her direct feedback during “disruptive but transformative change” in the city.
New documents reveal McGuinness raised concerns with the state of Wellington, planned Golden Mile works, and the level of homelessness before quitting.
Now, official documents released under the Local Government Official Information and Meetings Act detail concerns raised by members about the state of Wellington city and reveal how the resignations played out.
Following his resignation, McKenzie, who owns Hawthorn Lounge, told the Herald he didn’t feel the meetings were getting anywhere because the council wasn’t listening.
Justin McKenzie at Hawthorn Lounge. Photo / Nicola Edmonds
Documents show McKenzie’s sudden resignation came in the form of a September 24 email to the mayor’s senior adviser.
“Please accept apologies as I will not be able to attend the meeting this afternoon due to staff matters requiring my attention.
“I would also like to notify you and the mayor I will be stepping down from the business group. Effective immediately.”
McGuinness, who founded Wellington development company Willis Bond, would not comment when approached by the Herald following his resignation last year, except to confirm he had left the group.
The correspondence released shows McGuinness emailed on December 10.
“I am writing to let you know that I have decided to resign from the group,” it read.
“I have appreciated the opportunity to be involved and wish you, the mayor, and other members of the group all the best.
“Kind regards, Mark.”
Mark McGuinness of Willis Bond, at the Wynyard Quarter. Photo / Dean Purcell
Earlier emails shed some light on the concerns he holds for the city and why he doesn’t believe the council’s focused on the right issues.
In July, McGuinness emailed the mayor’s senior adviser and other business leaders in the group, outlining a number of Wellington’s troubles.
“To be frank I am personally very uncomfortable with the impact of these works on the small retail businesses along the route that are holding on to survival by a thread,” the developer wrote.
“The city could get much better value investing elsewhere. However, I am advised that this decision is a done deal.”
Works to revitalise the intersection at the top of Wellington's tired Courtenay Place will start in late April. Photo / Mark Mitchell
McGuinness suggested redirecting the funding for the Golden Mile, which the council is paying tens of millions of dollars for, to “deal with the homelessness and safety issues in the city”.
He said the new Beat Police initiative was “excellent news” but would not entirely solve the issue.
He went on to share a personal anecdote of a recent dining experience to illustrate the issue of homelessness in the city.
“Outside Pickle and Pie today at lunchtime were seven homeless, I saw one drug deal go down and they were drinking openly,” McGuinness noted.
The developer says homelessness is "killing" the inner-city. Photo / Mark Mitchell
“We need to develop a strategy to address this issue as it is killing the CBD and Courtenay Place.
“A joined-together strategy is needed to support these people and give them an opportunity to get off the street.”
Further shop vacancies would become more of an issue following the start of Golden Mile works, McGuinness warned.
He also raised the city’s lack of growth, the need to attract talent, and the cost of living and doing business in the capital.
“Wellington has (by some margin) the highest property outgoings cost of anywhere in the country. If businesses have an option, it is much cheaper to be based elsewhere. Among other things, this has assisted corporate flight from the city. This is ominous for the economic life of the city as well as for the city’s likely rates income over time.
“This factor, along with the Government’s determination to shrink the public sector, is clearly a material economic headwind.”
The email ended with an optimistic note: “The city has faced challenges before and overcome them. I would like to think that we can do this again.”
Another property mogul, Eyal Aharoni of PrimeProperty, shared concerns about the Golden Mile, saying he doesn’t believe there is public support for it.
“Not good timing,” Aharoni said.
“Considering the current retail struggle, many are likely to fold and the benefits, if any, will be too late for some,” the developer wrote.
When contacted by the Herald, McGuinness again said he had no further comment to make on his resignation or the points raised, other than to clarify that they were not criticisms, but “suggested issues to be addressed by the group”.
There have been no further resignations from the group this year, the mayor’s office confirmed.
Whanau told the Herald in a statement that fashion designer Julia Palm, digital marketing leader Tim Pointer, and Epic Hospitality owner Greig Wilson were appointed in January to take the place of McGuinness and McKenzie.
“These business leaders are bringing a real-world perspective to the table,” Whanau said.
As for the concerns raised by members regarding the Golden Mile project, Whanau said the group “was set up to have a diversity of views”.
“Some members of the group don’t support the Golden Mile but others do. Where possible, we have sought to take on board feedback and make changes.”
Construction on the first phase of the project is set to start later this month. A contract is yet to be signed for the bulk of the work and financial business support has been ruled out by the mayor.
Ethan Manera is a multimedia journalist based in Wellington. He joined NZME in 2023 and is interested in local issues, politics and property in the capital. Ethan is always on the lookout for a story and can be emailed at ethan.manera@nzme.co.nz.
