Tauranga Marine Precinct sale finalised after court dismisses injunction
The controversial $13.98 million sale of Tauranga's Marine Precinct for a superyacht service development has been settled.
The settlement comes two weeks after a High Court judge dismissed the interim injunction that had halted the sale.
Tauranga City Council was due to settle its sale of the Sulphur Point property to Christchurch developer Sam Rofe in November, but was halted by the last-minute High Court injunction.
It was filed by Sean Kelly, managing director of precinct-based marine service company Pacific 7, on the basis of the displacement of the working boats that use the precinct, and a lack of consultation with precinct users.
Justice Peter Andrew's decision, released on April 11, found the arguments for stopping the sale "generally weak" and that claims of a local fishing boat fleet being harmed were "overstated".
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Council chief executive Marty Grenfell said Justice Andrew's findings were unambiguous.
'Based on further legal advice, council has now met its legal and contractual obligations with regard to the sale of the precinct,' he said in a statement.
Councillors discussed the sale behind closed doors for two hours at a meeting on Monday.
Grenfell said the sale gave effect to the council's original intent for the precinct when it was established in 2015.
This was to help grow the region's commercial marine sector and create significant economic benefits for the local community, he said.
"The reality is that in its current form, the precinct has never achieved its full potential, and ratepayers have been funding ongoing operating losses in the order of $1.5 million a year."
Tauranga City Council chief executive Marty Grenfell. (Source: NZME)
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The sale committed the purchaser to design, construct and complete development of the precinct so that it met its strategic objectives and established a purpose-built marine service facility, for the wider benefit of the industry and the community, Grenfell said.
He said the council would continue to engage with all marine industry stakeholders and ensure the wider interests of the community were met.
Rofe approached the council in late 2023 with a proposal to buy the precinct with a vision of it becoming a "premier superyacht refit destination".
In a separate statement, Rofe said with the settlement complete his company could begin the transformation works first envisaged by Tauranga in 2014.
Rofe said it would deliver a world-class marine precinct that was fit for purpose to provide employment and opportunities in specialist marine services for larger pleasure craft and local commercial vessels.
"The Tauranga Marine Precinct will offer all users the same care and respect that is given so generously by the people of Tauranga Moana to all who visit our beautiful city."
The first stage of the $11.4 million precinct project opened in 2018.
Its development was funded by the council through land sales, and Bay of Plenty Regional Council through the Regional Infrastructure Fund.
LDR is local body journalism co-funded by RNZ and NZ On Air.
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