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Decision on land next to Pacific events centre
Media Release
3 March 2009
Court decision on land next to Pacific events centre
The High Court has ruled that if land next to the TelstraClear Pacific events centre is sold the net proceeds would go to Manukau City Council.
The council and the Counties Manukau Pacific Trust were seeking legal clarification of agreements that relate to a parcel of land next to the events centre.
Under those agreements, the council provided the trust a grant equal to the net sale proceeds of the land (approximately $11 million) in 2003. Early in 2008 the council repurchased the land from Eldamos Investments, using a condition in the sale and purchase agreement to buy it back if it wasn’t developed.
The High Court ruled that the net proceeds from another sale of the land should go to the council and not the trust.
The court also ruled that the council has an obligation to consult with the trust over the sale of the land and ensure it isn’t used for something incompatiable to TelstraClear Pacific.
The land is between the events centre and Rata Vine, it is not the site currently proposed for stage two of the TelstraClear Pacific development.
Manukau City Council Chief Executive Leigh Auton says the council welcomes the court’s decision because it provides legal clarification of a situation that wasn’t foreseen when the original trust agreements were prepared.
“This decision makes it clear that the council can retain the net proceeds from any sale of the land.
“The court decision confirms that the trust does have an interest in what is done with the land. It’s always been the council’s intention to work closely with the trust to get something on the site that is compatible with the events centre.
“The council and the trust have a very good relationship, this legal process hasn’t affected that. We’ve been extremely pleased to see how successful the events centre has been,” Mr Auton says.
The land’s value was estimated last year to be $30-40 million. Although there has been interest in the land the council is currently not in any negotiations to sell it.
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