Shelly Bay development

Information relating to a proposed Shelly Bay development.

Shelly Bay Road is now open

Road open

19 September 2023 

Shelly Bay Road is now open to vehicles, pedestrians, and cyclists.

The clean-up works following the Shed 8 fire have been complex, especially with all the debris on site being considered asbestos contaminated material.

The Shed 8 site will remain closed to manage any remaining risks associated with the site.

Other Council-owned land at Shelly Bay will also remain closed to the public while reinstatement works are underway.  

Shed 8 fire clean-up update

21 July 2023

Following the fire that destroyed Shed 8 on June 7, a Council appointed specialist asbestos removal contractor has been undertaking the necessary health and safety measures to manage the risks for those involved in the clean-up. 

This work includes the installation of 5m high shrink-wrapped scaffolding, decontamination facilities including a vehicle wash-down facility to minimise further contamination and the spread of hazardous materials within the city, and on-site water dampening for dust suppression to prevent the possible release of asbestos fibres into the air during the clean-up process.

A ramp constructed from scaffolding which allows a vehicle to drive up to a platform to be cleaned.
Installation of the raised vehicle wash-down facility

During the clean-up operation, a section of Shelly Bay Road will remain closed to traffic and pedestrians for public health and safety until further notice.

Whilst the progress of the clean-up relies on several factors, including weather conditions, it is estimated to be completed in September.

Fire at Shelly Bay

23 June 2023

On June 7, 2023, a building known as Shed 8, on Council-owned land at Shelly Bay, burnt down.

As the building contained a significant amount of asbestos, all the debris and remaining structural parts on this site are considered contaminated, and a careful clean-up approach is required.

The clean-up of the Shed 8 site will likely take three months, depending on several factors, including weather. Another factor is the need to keep the people doing the clean-up safe.

This means Shelly Bay Road within the 300m exclusion zone will be closed to all traffic, including pedestrians, until further notice. We appreciate your understanding and cooperation during this critical process.

We acknowledge the inconvenience this will have on road users, including those people, businesses and communities that might rely on Shelly Bay Road for access. We are working hard to minimise the effects of this clean-up.

Notice of deconstruction of two unsafe buildings at Shelly Bay

25 January 2023

Deconstruction will proceed in respect of two buildings located on Wellington City Council owned land at Shelly Bay to address the health and safety risks posed by both buildings. 

It was always Council’s intention that the existing buildings would be retained and remediated, however, in December 2022, Council became aware of further deterioration of the structural integrity of the Shed 8 and Shipwrights buildings at Shelly Bay.

Both buildings are defined as “Dangerous” and “Earthquake Prone” pursuant to the Building Act 2015 due to a combination of weakened structural integrity and significant contamination (including asbestos). Accordingly, both buildings were closed by Council. Due to the level of asbestos in the buildings they will be deconstructed for a slower more managed demolition.

Investigations by the Developer into how the building issues can be addressed have shown that the adjoining wharf is also a hazardous structure and prevents access and repair of the Shed 8 building to which it is connected. Given the findings of these recent investigations, Council is acting to address the risk to both people and property that the buildings bring and considers prompt deconstruction of both structures is required to address this risk. 

Council on 20 December 2022 acting in Councils' capacity as PCBU under the Health and Safety Work Act 2015, issued a formal notice to the Developer, requiring them to deconstruct the buildings at its cost (pursuant to the Development Agreement between Council and the Developer) to address the health and safety risks. 

The deconstruction of the buildings will also facilitate the safe repair and remediation of Council’s underlying seawall and the removal of the adjacent deteriorating Wharf owned by the Port Nicholson Block Settlement Trust.

Council officers are currently negotiating the replacement of the buildings.  

September 2022: Demolition of three asbestos-affected buildings

Wellington City Council is proceeding with the demolition of three asbestos-affected buildings on Council owned land at Shelly Bay to remove the health and safety risk to the public.

Following the publication of the asbestos report in 2021, the Council announced the closure of Council owned land at Shelly Bay on the 17 of November 2021 in order to manage health and safety risks posed by the site.

The Council has now appointed a specialist contractor to remove and remediate the risk of asbestos from these buildings on the Council’s land. Central Demolition Ltd is removing the asbestos to make the site safe prior to the demolition of the three affected buildings.

The asbestos removal and demolition will not affect access to any of the privately owned land at Shelly Bay. The public road through Shelly Bay remains open.

November 2021: Closure of an area of Council owned land at Shelly Bay

We announced the closure of an area of Council owned land at Shelly Bay from 6pm, 17 November 2021 under Council’s Public Places bylaw in order to manage the health and safety risks posed by the site. This includes unsafe levels of asbestos contamination in the buildings and soil on Council’s land.

Council officers met with Mau Whenua representatives on 16 November which included an offer of an alternative location on public land at Shelly Bay, as a result of the closure.

Council’s priority is to ensure people are protected from health and safety risks on public land at Shelly Bay. This includes being able to control and monitor access to certain public areas at Shelly Bay which may pose a risk to members of the public. We will also move to demolish the affected buildings as soon as possible.

The latest asbestos report (linked below) shows unsafe levels of asbestos in the soil surrounding Council’s buildings, which is likely to spread further as the buildings continue to deteriorate.

The Council closed these buildings in 2020. In recent months we have become aware that the buildings have been repeatedly accessed and interfered with. We have taken all practicable measures to ensure further access is prohibited including re-securing the buildings, putting up warning signs and reminding occupiers of the safety risks associated with the buildings. These efforts have been unsuccessful as there is evidence the buildings are still being accessed. The interference with the buildings has increased the risks associated with asbestos contamination and contributed to the Council’s decision to close the area.

The Council’s closure of its land does not affect any of the privately owned land at Shelly Bay including the Chocolate Fish café and car park.

Supporting documents

Wellington City Council Public Notice of closure of public space in Shelly Bay (2.1MB PDF)
Asbestos in soils Shelly Bay Sampling Report (1.2MB PDF)
Follow up email from Fibresafe to Council on Asbestos in soils sampling report (147KB PDF)

November 2020: Council Decision on Shelly Bay and next steps  

On 11 November 2020 the Council voted to adopt the key commercial terms (KCTs) for the proposed sale and lease of Council-owned land at Shelly Bay, and the stakeholder engagement approach to develop options for Shelly Bay Road. You can read the Council paper and minutes from the meeting on the Council website.

Prior to the Council meeting we held a Question and Answer Drop-In Session for Councillors on Monday 9 November. This was open to the public to observe and key stakeholders were invited. On 10 November officers provided Councillors with answers to the common questions that arose, which you can read below.

Shelly Bay Councillor Question and Answers (314KB PDF)\

Council officers are now in the process of:

  • drafting a development agreement which will be finalised over the next three-six months.
  • developing an engagement approach with key stakeholders on the roading options for Shelly Bay Road. We envisage the results will be presented to the Council in 2022, after we complete engagement with stakeholders and the community on the options available.
  • The Council report outlining the key commercial terms (KCTs) for the proposed sale and lease of Council-owned land at Shelly Bay, along with the stakeholder engagement approaches for possible upgrades to Shelly Bay Road, has been published on the Council website. The report will be debated by the Council on Wednesday 11 November.


On 27 September 2017, the Council agreed to enter into an agreement to sell and lease land with Shelly Bay Limited as part of a planned development by The Wellington Company in partnership with Port Nicholson Block Settlement Trust (PNBST). The Council agreed (in principle) to sell (0.3h) and lease (0.6h), a total of 0.9 hectares of land.

The paper published today (5 November 2020) outlines the KCTs which officers have negotiated with the developer.  

Supporting documents

October 2020: Key commercial terms and a public engagement meeting announcement

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.

September 2020: report on the status of the Shed 8 building and foundations in Shelly Bay

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:

 August 2020: Councillor workshop - progress update

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


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)