Reading deal dead, but what now for lifeless hotspot?
The demise of the $32 million Reading Cinemas deal will have a massive impact on the council’s plan to make Courtenay Place vibrant, businesses say.
The deal between the Wellington City Council and Reading Cinemas would have seen the council purchase land under the vacant cinema complex, a boarded-up eyesore on Courtenay Place, so the owners – Nasdaq-listed Reading International – could reopen the earthquake prone cinema. Yesterday’s confirmation the deal had collapsed comes after months of controversy.
In a press release, mayor Tory Whanau said the outcome was “disappointing, but the right one”.
Jeremy Smith, the owner of Lulu Bar and El Horno, said the end of the deal was a massive blow to the chances of bringing life back into the area.
“Courtenay Place doesn’t just need the midnight to 3am crowd, we need it to be vibrant from 4 o’clock in the afternoon,” he said. The reopened cinema would have brought people in during the daytime slump.
The deal would have been a step forward, and he hoped there was another plan that could see the complex open its doors again.
Sir Mark Dunajtschik had made an offer to step in and provide a similar deal to Reading in the council’s place, but the council did not take him up on the offer.
Dunajtschik told The Post he was glad to see the council’s deal no longer going ahead, “as it was too much in Reading’s favour”. He did not comment on whether he would enter negotiations with Reading over the empty complex.
“Maybe Mark can come to the rescue,”
Smith said.
Chamber of Commerce president Simon Arcus said it was no surprise to see the deal fall over after a “public thrashing”.
“The central issue remains that the Courtenay Place area needs revitalisation. It’s a good opportunity to bring businesses and council together to collaborate.”
Around the council table, supporters of the deal were unanimously disappointed at its failure, while the opponents – some of whom were investigated by high-profile
lawyer Linda Clark for alleged leaking of information about the deal – were delighted at the news.
Despite the glee from opponents of the deal, most could agree that something needed to be done to turn around the rundown entertainment area.
Wellington central MP and former councillor Tamatha Paul said she applauded the mayor for “giving it a crack”.
The vacant Courtenay Central complex was an “absolute wasted opportunity” and contributed to the area being “dingy and unsafe”. “It is unacceptable that multinational companies can land bank their derelict buildings on the most prime real estate in Wellington. I want to see the full force of the Government and councils cracking down on land banking so that our city can reach its full potential.”
Councillors hoped the Government would look at giving them greater powers to encourage redevelopment.
At the moment, Ben McNulty said, council had “no alternatives” but to enter the negotiating room with private owners like Reading who had empty buildings. Without the deal, the complex would stay empty until at least 2035, he believed.
“The fact that this deal was such a sweetheart deal reflects the fact there are no alternatives.”
The Public Health Act could be used in cases where buildings were unsanitary or dangerous, and the Public Works Act only applied if required for a significant infrastructure project like a road or train line. The council had also considered ramping up rates for Reading, but were told that was unlawful, McNulty said.
Land value rating was one tool the council was continuing to investigating in the long-term which could make a difference.
“I’m glad we tried,” said deputy mayor Laurie Foon. The council would refocus its energy to find other ways Courtenay Place could be improved, she said.
Councillors spoken to by The Post were not clear on the details of exactly what went wrong in the due diligence process to derail the deal, which was described by staff last month as 80% complete.
John Apanowicz, an architect of the deal, said “that’s just the way it goes”. There must have been “some sticking points” that prevented the deal being signed during the past month.
He believed there would still be opportunities in the future for the council to work with owners of other vacant sites, like the Amora Hotel.
Iona Pannett was “delighted” the deal was no longer going ahead and said she felt vindicated in her opposition to the deal.
She was “flummoxed” as to how the deal had come so far, through two council votes, with what she believed were obvious unanswered questions.
“They’ve never been able to explain why Reading couldn’t afford to do its own redevelopment.”
Tony Randle said he had always thought it was a bad deal and was “pleasantly surprised” it had failed.
“I think the increasing public opposition to this deal helped the council avoid this well-meaning but fatally flawed proposal.”
He hoped councillors would be able to set politics aside and work with businesses to bring the central part of Wellington back to life.