Car park to go under hammer

The Bay Hill car park sought by a developer will be sold to the highest bidder, as long as it’s retained as a car park.

At the inaugural Timaru District Council meeting on Tuesday, councillors recommended the car park, next to motels and businesses overlooking Caroline Bay, be sold by public auction.

It follows an offer to buy the car park by developer Allan Booth, who said it would assist his plans to redevelop the Hydro Grand Hotel site into a hotel, apartment and office complex.

Concerns were raised in letters circulated to councillors this week by neighbouring parties. They said no public consultation was carried out, and a sale could have a negative impact on residents.

The councillors’ decision has prompted Booth to re-evaluate.

A report to the council said revenue collected from the car park did not cover annual costs to run it.

The report did not detail the value of the land. Council online records show it was valued at $235,000 in 2013.

Councillors Peter Burt, Tracey Tierney, Steve Wills and Mayor Damon Odey all cited conflicts of interest and sat in the public gallery, as reappointed deputy mayor Richard Lyon stood in for Odey.

Council chief executive Peter Nixon explained that as the car park was a freehold property, there was no need to seek formal consultation.

‘‘If it was a park, or reserve, then there would be a requirement [to consult].’’

The council was required, however, to take into account factors relating to a sale of the site, including concerns and impacts on interested parties and the wider community, he said.

Councillor Kerry Stevens asked about its existing use and the possible effects on nearby residents if it was sold.

Residents had their own car park, and though the car park might be used by visitors or guests, it was simply a car park, Nixon said.

‘‘We are not considering any changes, except ownership of the land.’’

Councillor Dave Jack proposed discussing the matter in committee, in light of concerns raised by the letters.

Nixon agreed to go into committee to accept legal advice.

After the public was readmitted, Stevens said it was clear the car park was surplus to council requirements. Coupled with interest from several parties, it was a ‘‘win-win’’ situation.

Jack said although he helped instigate the creation of the car park, he agreed it was not making money.

Councillor Andrea Leslie said she supported the sale as long as it was transparent and took into account the needs of the district.

Subject to a covenant that it be retained by the new owner as a car park, councillors recommended selling it by public auction.

After the meeting, Booth said he was disappointed at the decision and would re-evaluate ahead of an upcoming resource consent application hearing.