Tide turns on Reading deal
The Wellington City Council political tide is swinging against the controversial $32 million Reading deal, with one supporter now opposing it, another saying he is “very sceptical”, and a call for an official investigation into the agreement.
Councillor Ray Chung, who previously asked the auditor-general to investigate the deal, has now written to the Ombudsman requesting an investigation into the council’s decision to hold two meetings about the deal in private. “The public did not see democracy in action, nor participate in democratic processes,” he said.
Meanwhile, councillor Tim Brown said that so much new information had come to light since he voted for the deal, he would now vote against it if it came back for another vote.
Councillor Ben McNulty, who described himself as the council’s only swing vote on the deal, before voting for it, said he was joining Brown in having a close look to see if the current deal was the best one for the city. He was “very sceptical” that it was.
Brown’s opposition means there are now eight people around the council table opposed to the deal, and possibly eight for it. But if it went to another vote, the split would trigger mayor Tory Whanau’s casting vote. She is a strong supporter of the deal, which she helped to make.
But if McNulty ends up opposing it, that would give opponents a majority.
Council spokesperson Richard MacLean said there were no plans for another vote on the deal, but McNulty has previously said there were “four stages” where the council could walk away from it. He would not clarify how the council, currently going through due diligence, could back out.
McNulty said that part of his and Brown’s current work was looking at whether the city would be better going with an offer from philanthropist Sir Mark Dunajtschik.
The current deal with Reading would see the council buy the land under the Courtenay Place complex for $32m. Reading would use that money to fix and reopen the building, which closed after a structural report in 2019. Reading had the option of buying the land back in 10 years at the original $32m price.
Dunajtschik’s offer would see him approach Reading directly to buy the land, but he would put up his own money only once Reading had put up its money.
The ground rent from Reading would go to the Nikau Foundation, which he had already left his estate to, to support people living with physical and intellectual disabilities. Fifty years later, it would be handed to the people of Wellington. If Reading wanted to buy the land back, it would be at the market rate of the day.
Brown this week said the council had not had time to consider the offer when it voted in February.
New facts that had come to light included the fact Reading International had lost more than $150m in three years and was asking for rent relief, increasing questions about the viability of the project, and Dunajtschik’s offer. “I wouldn’t be supporting the deal” if it came back for another vote, Brown said.
Councillor Diane Calvert, an opponent of the deal, said all the new information that had come to light meant she would be surprised if chief executive Barbara McKerrow “would execute a contract on behalf of the city and be satisfied it’s in the best interest of the city”.
Previous opponents Sarah Free, Iona Pannett, Tony Randle, Nureddin Abdurahman, Diane Calvert, Ray Chung and Nicola Young all still oppose it.