The Marine Precinct at Sulphur Point was sold last year, with plans to develop it into a super yacht destination. Photo: LDR / Supplied
- Tauranga Mayor Mahe Drysdale told commercial boat users that the sale of the marine precinct land was a "s... deal" and that if the current council could get out of it, they would
- Precinct users say that with an injunction before the courts the council has a chance to do just that, and they do not understand why the deal has not been cancelled
- Mahe Drysdale says the council is working with all parties towards the best possible outcome
Tauranga Mayor Mahe Drysdale has called the sale of marine precinct land a 's... deal', but locals say he is not taking the opportunity to cancel the deal.
Tauranga City Council's commissioners announced in May that the Marine Precinct at Sulphur Point had been sold, with purchaser Sam Rofe set to develop it into a super yacht destination.
Tauranga Mayor Mahe Drysdale. Photo: Supplied / Tauranga City Council
The news was met with dismay by commercial boat operators who based their businesses in the precinct.
After council elections in July, marine precinct users organised a meeting to discuss the issue with the newly elected mayor and councillors.
In that meeting on 16 October, Drysdale was strong in his criticism of the deal.
"It's a shit deal, you know... we've inherited it," he said.
Drysdale then told users the new council did not want the deal to go ahead.
"If we could get out of this deal Erika, we would get out of this deal," he said.
Drysdale was talking to Lobby for Good director Erika Harvey, an outspoken opponent of the sale.
She pointed RNZ to a clause in the sale contract that said the council can cancel the sale. It read:
"If at anytime before the Settlement Date, an injunction proceeding is issued or any court granted preventing the sale and/or registration of a transfer in pursuance of this Agreement, the Vendor will be entitled, by notice in writing to immediately cancel this Agreement."
Harvey said she did not understand why the council had not now stopped the sale, especially given the assurances from Drysdale at the October meeting.
"It did seem to everyone in that room that they wished that there was a way out. So, when we gave them one, and they didn't take it, it came as a shock to all of us," Harvey said.
The 'way out' is the High Court interim injunction, which prevented the sale from being completed, and was issued after precinct-based business Pacific7 filed judicial review proceedings.
Roger Rawlinson was at the October meeting and said the mayor made them feel that he was on their side.
"We assumed moving forward that if there was any wiggle room or any way to get out of it, he would go out of his way to do that," said Rawlinson.
He now felt that the mayor may not have been honest with them at the start.
"Because if he was consistent, he would just be what he was in that first meeting... but it appears either something has changed his mind, or he wasn't honest to begin with."
Drysdale told RNZ he stood by what he said in the October meeting and reiterated that the current deal would not have been approved under his council.
Last week the interim injunction stopping the sale was heard in the High Court at Tauranga, with the purchaser arguing it should be thrown out and the sale should go ahead.
Drysdale said council was at the hearing, but were not the ones fighting the injunction.
"As Tauranga city council, we are a party and obviously provided information that was required to that, but we weren't actually a party to the strike out of that injunction," he said.
Drysdale said the council was working productively with all parties to find the best possible outcome.
"We have looked at every option available to us."
He said the council was following legal advice, but they could not disclose what that advice is.
RNZ asked the council whether it has considered enacting the cancellation clause, or if the council had taken any votes on the matter.
Spokesperson Christine Jones said the council had sought legal advice and had legal representation in respect of the injunction and the agreement.
However, as the matter is subject to legal proceedings, it would not be making any comment.
Justice Andrew reserved his decision after the hearing last week, and the interim order pausing the sale remains in place.
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