Shelly Bay land deal gets Council go-ahead

28 September 2017

Wellington City Councillors have today voted in favour of the sale and lease of land at Shelly Bay.

Artist concept of Shelly Bay proposed development.

The vote was close: with 7 Councillors in favour (Deputy Mayor Eagle, Councillors Day, Gilberd, Dawson, Marsh, Calvert, Free), 5 against (Councillors Sparrow, Lee, Pannett, Foster, Woolf), and 2 abstentions (Mayor Lester, Cr Young) as a result of a conflict of interest. Cr Calvi-Freeman was absent.

The vote follows a period of lengthy consultation which saw over 1100 submissions received.

The vote removes one of the last hurdles to the project which will see a new 350-home development on the former Defence site which will also include a boutique hotel with about 50 rooms, 280 apartments, 58 townhouses and 14 standalone houses.

The project is a partnership between the Council and Shelly Bay Limited (SBL), a company set up by property developer The Wellington Company and Taranaki Whānui /Port Nicholson Block Settlement Trust (PNBST).

The Council will now press ahead with the sale of about 0.3 hectares of public land to SBL for housing; the value of this land is in the order of $2.5 million. The Council will retain 2.6 hectares of publicly accessible land which will be used for public space, waterfront promenade and road access.

A further 0.6 hectares of land and two buildings will be leased for 125-years to SBL for commercial, mixed-used development which will be generally publicly accessible; this lease is valued at about $5.5 million.

Deputy Mayor Paul Eagle said the vote was a milestone for all Wellingtonians and iwi.

“This project will resurrect an under-utilised part of the city which will see the development of a new tourist attraction, unlock great public spaces, create over 100 jobs and add much-needed new housing to the city.

“The time spent talking to Wellingtonians about the development through the engagement process has seen some key changes now incorporated into the deal which we believe delivers a stronger outcome for everyone,” Cr Eagle added.

Key areas raised by submitters included concerns over traffic congestion, how the development integrated with wider Council strategies and the development of the peninsula as a whole, the costs of infrastructure, the consenting process and use of the Housing Accords and Special Housing Areas Act 2013 (HASHAA) and environmental concerns.

These changes, including amendments moved at today’s Council meeting, included:


  • Capping Council spending on infrastructure at $10 million
  • Investigation of further upgrades to Shelly Bay Road between Miramar Avenue and Shelly Bay to support multi-modal travel - in particular to enhance cycling
  • Upgrading the wider water supply and waste infrastructure to support future development across the wider Miramar Peninsula at an estimated cost of $5.6 million
  • The Council will work with SBL to instigate further research and opportunities to better accommodate the needs of little blue penguins
  • The Council’s urban design panel will be actively involved in the review and assessment of future designs of buildings, public spaces and other interventions – including responses to climate change and sea level rise - to confirm a quality result
  • SBL undertaking to deliver affordable housing within Wellington city during the life of the development
  • The Council will continue to work with iwi, the community and the Government to develop a strategy for the peninsula as a whole
  • A full review of the Shelly Bay project.