Silence advised over Shelly Bay plans

Wellington City councillors have been told to keep quiet about the planned redevelopment of Shelly Bay, to minimise the chance of further legal battles.

Lobby group Enterprise Miramar Peninsula took the council to court over the development plans last year, claiming it had acted with bias and with conflicts of interest in granting resource consent for the project.

Consents for the $500 million development were awarded to The Wellington Company and the Port Nicholson Block Settlement Trust but were overturned by the Court of Appeal in December, after it was found the council wrongly applied the law when doing so.

At a council committee meeting yesterday, councillor Andy Foster revealed chief executive Kevin Lavery had sent an email to councillors warning them to ‘‘refrain from any commentary’’ on the matter because it could lead to further legal battles.

The council’s acting strategy and governance director, Hayley

There was ‘‘heightened sensitivity’’ around the topic because resource consent had to be reapplied for. Hayley Evans on the controversial development

Evans, said discussing the matter publicly created a ‘‘real risk’’ of further legal action.

‘‘One thing to note about

[Enterprise Miramar’s appeal] is that one of the key elements of their argument has been bias and, essentially, corruption.

‘‘So we have been in the process of defending this organisation from what are quite serious allegations of political interference.

‘‘There is a real risk, given that it is already in the minds of the parties [who could be] arguing in court, that if there is further council involvement, we will face further criticism from either side. So that is a real live issue.’’

There was ‘‘heightened sensitivity’’ around the topic because resource consent had to be reapplied for, and any future decisions were up in the air, Evans said.

There was ‘‘significant potential’’ for further litigation.

‘‘We have to make sure that we protect the organisation. Allegations of corruption go to the heart of our council’s operation.’’

Wellington Mayor Justin Lester said it was important to note the High Court and Court of Appeal had dismissed the corruption allegations but he reiterated the need for caution.

‘‘Just be careful – refrain,’’ he told Foster. ‘‘You’re not a lawyer, and you bring yourself at risk, and the organisation at risk, in the future.’’

Lavery also said further litigation was ‘‘very possible’’.

‘‘What we’re saying is, ‘Just be careful.’ ’’

The controversial development would involve 350 apartments and townhouses, hotels, a rest home, a ferry terminal, a marina, and a cable-car link to Mt Crawford.