Update – 20 October 2020
The Council meeting to consider and vote on the key commercial terms for the proposed development of Shelly Bay, and a public engagement approach for possible upgrades to Shelly Bay Road has been confirmed for Wednesday 11 November 2020.
The Council papers will be available on this website from Friday 6 November 2020.
Council officers also sought independent legal advice on whether there may be any risk of a real or perceived conflict of interest which may disqualify Councillors from voting on the issues above. This was to provide assurance to the public and ensure the process is transparent and robust.
The legal advice - which has been provided to Councillors - shows there are no real or perceived issues which would affect their ability to vote at the meeting.
You can read the legal advice provided to the Elected Members below.
Update - 21 September 2020
Below we have published the monitoring report on the status of the Shed 8 building and foundations in Shelly Bay. This report has also been provided to a member of the public who requested them under the Local Government Official Information and Meetings Act (LGOIMA).
In 2014, the Council engaged the environmental and engineering consultants, Tonkin and Taylor to assess the building and seawall annually as part of ongoing asset maintenance.
In early 2015, the Council carried out remedial work on the foundations and piles supporting the building, based on the engineering assessments. This included installing temporary steel props to support the building’s piles and replacing timber rails with plywood boards to protect the foundations from erosion due to the waves.
In the most recent memo dated 27 July 2020 (based on an inspection on 22 June 2020), Tonkin and Taylor advised the Council that their staff were not prepared to continue doing regular engineering assessments until further remedial work is completed.
Given that Council could no longer monitor the building’s safety, we contacted the three tenants in Shed 8 to explain why we needed to close the building. We have been working with the tenants on timeframes to move and help them identify possible alternative locations.
Report released under the LGOIMA:
Update – 7 August 2020
On Wednesday 4 August Council officers provided the Mayor and Councillors with a progress update on the proposed Shelly Bay development at a workshop. This involved:
- a recap of the Council’s approach since September 2017
- confirming the areas of the key commercial terms that will form the basis of any commercial agreement for the sale and lease of Council land
- the shared responsibilities including costs, for the Council based on whether or not the development proceeds. Note: these costs are outlined in the committee paper considered by Council in September 2017
- discussion on approaches to engagement with stakeholders and the public on Shelly Bay Road between Shelly Bay and Miramar Ave.
In line with the undertaking made by the previous Chief Executive, recommendations will be brought for consideration to Councillors in October 2020 that will include the key commercial terms and approaches to engagement on the road.
Below is a copy of the presentation and updated list of Frequently Asked Questions
Update – 28 February 2020
In 2017 the Council agreed, in principle, to sell and lease portions of Council land at Shelly Bay, following preparation of a commercial agreement.
In line with the Council’s resolution of September 2017 and Chief Executive Kevin Lavery’s statement of 11 July 2019, Council officers are now undertaking the work necessary to be able to report back to the Council for consideration and decision. This will include the proposed key commercial terms.
We recently received a letter from Craig Stevens Barrister (acting on behalf of Peter Jackson) a copy of which you can find below.
Our lawyer has responded to this letter today, a copy of which you can find here.
For completeness we have also updated the frequently asked questions document which you can access below.
Previous Chief Executive updates
Application decision – 31 October 2019
Please find the Independent Commissioners’ decision regarding Shelly Bay which we released on 31 October 2019:
Note: The decision was re-issued on 31 October 2019 with a minor correction under section 56 HASHAA and section 133A RMA. Paragraph 179 has been deleted from the original version of the decision.
The resource consent has been granted.
Specifically the Commissioners unanimously issued three decisions:
- Decision One – Subdivision Consent – Granted subject to conditions.
- Decision Two – Land Use Consent – Granted subject to conditions.
- Decision Three – Cancellation of Amalgamation Condition – Agreed.
In doing so the Commissioners consider that the proposal is consistent with Part 2 of the Resource Management Act largely adopting the assessments provided by the applicant and the Officer’s recommendation report. They considered that the proposal has been designed (with appropriate conditions) to sufficiently mitigate adverse effects.
Regarding consent conditions, other than some refinement to improve clarity in terms of what is required of the consent holder, these are consistent with the conditions as first imposed when the initial Officer decision was made.
Please also note that we will be coming back to Council with a general update on the decision, including a final decision on the sale and lease of Council land and upgrade of roading infrastructure, in due course.
— Kevin Lavery, Chief Executive Officer
Message from the Chief Executive – 2 September 2019
Following last week's Council meeting, and the notice of motion item, we received a request from the media for the minutes from the PE meeting on 26 April 2017.
I am now releasing those minutes and they can be found on the Shelly Bay webpage.
Please note I have not made available the PE minutes from another item on the agenda, 4.1, which related to land acquisition.
Chief Executive response to the Notice of Motion from Cr Foster – 28 August 2019
I was in correspondence with Councillor Foster during July and early August on the subject of a notice of motion in relation to decisions on Shelly Bay.
In that correspondence I confirmed in writing that I would be referring the matter back to Council and that Councillor Foster’s request for a notice in motion was not needed.
There has been considerable speculation and controversy in the press over the last six months about whether Councillors were advised about the changed ownership of Shelly Bay between Port Nicholson Trust and the Wellington Company. In fact, the Council received a report in public excluded on the 26 April 2017. Even though Councillors have had the information before I believe it is in the public interest to release the report and table it for this meeting. There are some minor redactions to protect individuals and commercial interests.
I hope that this sets the record straight.
— Kevin Lavery, Chief Executive Officer
Chief Executive response to the Notice of Motion from Cr Foster – 11 July 2019
I have received a Notice of Motion from Councillor Andy Foster, which seeks to amend the Shelly Bay decision of Council on 27 September 2017, and require the matter to be referred back to the Council for further decision.
Because of the high level of public interest in this, I believe it is appropriate that the transaction be reconsidered by the Council once the outcome of the resource consent process is known.
I have written to Councillors to explain I do not intend to carry out any action in accordance with the delegation given to me on 27 September 2017.
I will instead bring a paper to the Council’s City Strategy Committee (or equivalent) for referral to the Council, which makes recommendations in respect of the following:
- The outcome of the resource consent process in respect of the development, including any conditions of any consents granted;
- The key terms of the transaction that Council proposes entering into in respect of the development, including the counter party;
- The timeframe for progressing any transaction in respect of Shelly Bay;
- The timeframe, scope and funding of further work in respect of Shelly Bay Road;
- Any of the resolutions made on 27 September 2017, which may need to be amended or rescinded as a result of any of the above.
This will ensure that the Council has an opportunity to consider the transaction with all relevant factors before them, as was the case on 27 September 2017.
Given this is consistent with what Councillor Foster is seeking to achieve with his Notice of Motion I do not believe it is necessary to progress with the Notice of Motion at the August Council meeting. Instead, the matters will be canvassed once the outcome of the Resource Consent process is known, and the Council has the matter before them again. Accordingly, I have invited Councillor Foster to withdraw the notice and allow the matter to be dealt with as above.
Should the Notice of Motion proceed to Council in August, a report from me will be required under Standing Orders. This report will:
- Provide the same commitment from me to refer the matter back to Committee before any decisions are made as set out above; and
- Contain officer advice about the Notice of Motion, including that paragraph xviii(g) contained in the Notice of Motion cannot be agreed to by Council as Council’s advice in relation to the traffic effects has already been provided to the Commissioners as part of the report required by section 42A of the Resource Management Act 1991.
— Kevin Lavery, Chief Executive Officer
On 27 September 2017, the Council agreed to enter into an agreement to sell and lease land with Shelly Bay Limited so a planned development of housing and public space could proceed. To date, no transaction has been finalised between Wellington City Council and Shelly Bay Limited. You can view the Council’s full decisions at the links below:
Work in line with the 27 September 2017 resolutions is being progressed and further decisions will be made later in 2020. A timeline (including relevant documents) outlining what has happened since June 2014 is available below:
Resource Consent application for Shelly Bay
On 18 April 2017, resource consent for the Shelly Bay development was approved under the Housing and Housing Accord and Special Housing Areas Act 2013 (HASHAA).
In December 2018, the Court of Appeal quashed the resource consent approval finding that the Council had erred in its application of the law in relation to one section of the HASHAA and instructed Council to reconsider the application. Three Commissioners with expertise respectively in law, engineering and planning have been appointed by the Chair of the Regulatory Processes Committee to reconsider the resource consent application, which is now underway. This is in accordance with the Council’s standard process and delegations.
In line with the Court of Appeal’s recommendation, three Commissioners with expertise respectively in law, engineering and planning were appointed by the Chair of the Regulatory Processes Committee to reconsider the resource consent application. This consent was granted in October 2019 and you can view the documents relating to this below.
Decision of independent hearing panel appointed by Wellington City Council (632KB PDF)
Message from the acting Chief Executive – 21 February 2020
Kia ora koutou
I have recently updated the Mayor Andy Foster and City Councillors on the current status of the proposed Shelly Bay project.
This was to ensure new Councillors, in particular, are aware of the background and issues relating to the development proposal. I have included a copy of what was presented at the bottom of this message.
During this briefing Councillors were advised that with the resource consent granted by independent commissioners in October 2019, work will progress in line with the Council’s 27 September 2017 resolution.
For further information we have developed a frequently asked questions document which you can access below.