Developer doesn’t get to dodge $400k bill

A property development company has failed to dodge paying a city council more than $400,000, with a High Court judge upholding councils’ ability to charge levies for large commercial projects.

But the man behind the company says the judgment is only ‘‘round one’’.

Palmerston North City Council succeeded in fighting an application by Palmerston North Industrial and Residential Properties Ltd, which is connected to a web of companies controlled by Brian Green, to avoid paying a $415,494 development contribution levy.

In his decision, Associate Judge Kenneth Johnston outlined how the Palmerston North property was owned by various companies, all part of the ‘‘Brian Green group’’.

The issue had its genesis in a 2014 application by one of Green’s companies to develop a warehouse and distribution centre for DKSH.

The consent was granted, with the council requiring a development contribution levy of $513,507.34 to be paid.

There was then an application by a different Green group company to subdivide the land into two lots, which the council granted subject to the payment of another $185,685.

There was then a challenge by Green to the first levy, with the council accepting it was too high and knocking it down to $445,330.

But Green wanted it to go lower, challenging the recalculation, but getting the warehouse and distribution centre built in the meantime.

By November 2016, the $445,330 fee was further reduced to $415,493.

However, the fee had not been paid by May 2018, pushing the council to issue a statutory demand for payment.

One of the Green group companies then went to the High Court to have the demand set aside.

Green group lawyer David Sheppard said the company did not have to pay the levy, partly because of the way the law was worded and how the council tried to get the company to pay.

It was also argued the council was trying to recover the money from the wrong company in the Green group, making the statutory demand void. But the judge said the law clearly said the council was right to do things its way.

Furthermore, the argument about which company should pay was seeking to ‘‘elevate form over substance’’.

Green had engaged with the council multiple times on behalf of the group of companies without saying which company he was representing, the judge said.

‘‘Mr Green has effective control of all of the entities within the Brian Green group.’’

Not allowing the council to recover the money purely because of steps taken by the Green group would amount to ‘‘an injustice’’, the judge said.

The judge dismissed the claim, meaning the $415,494 must be paid.

Away from court, Green said he did not want to comment as the matter was ‘‘still before the courts’’.

‘‘The only thing I can add is this is round one.

‘‘There are 11 rounds to come.’’

The only thing I can add is this is round one. There are 11 rounds to come. Brian Green