Note: The reports contained within this agenda are for consideration and should not be construed as Council

cil policy
unless and until adopted. Should Members require further information relating to any reports, please contact
the relevant manager, Chairperson or Deputy Chairperson.


I hereby give notice that an ordinary meeting of the Auckland Development Committee will be held
on:

Date:
Time:
Meeting Room:
Venue:

Thursday, 12 June 2014
10.00am
Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

Auckland Development Committee

OPEN ADDENDUM AGENDA



MEMBERSHIP

Chairperson Deputy Mayor, Penny Hulse
Deputy Chairperson Chris Darby
Members Cr Anae Arthur Anae Cr Calum Penrose
Cr Cameron Brewer Cr Dick Quax
Mayor Len Brown, JP Member Josie Smith
Cr Dr Cathy Casey Cr Sharon Stewart, QSM
Cr Bill Cashmore Cr Sir John Walker, KNZM, CBE
Cr Ross Clow Cr Wayne Walker
Cr Linda Cooper, JP Cr John Watson
Cr Alf Filipaina Cr Penny Webster
Cr Hon Christine Fletcher, QSO Cr George Wood, CNZM
Cr Denise Krum
Cr Mike Lee
Member Liane Ngamane

(Quorum 11 members)

Tam White
Democracy Advisor

10 June 2014

Contact Telephone: 09 307 7253
Email: tam.white@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz





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Page 3

ITEM TABLE OF CONTENTS PAGE

9 Hobsonville Point 20ha Block: Future Residential Use 5


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Hobsonville Point 20ha Block: Future Residential Use

File No.: CP2014/11660

Purpose
1. The purpose of this report is to determine the future use of the Councils 20ha block of land
at Hobsonville Point. The report recommends the full 20ha should be committed for
residential development immediately, rather than the current position which is to retain the
option of 10ha of this land for a Marine Industry Precinct (MIP - also branded as Yard 37)
until financial year 2015/16. The report addresses the consequential decisions around
Special Housing Areas (SHAs) and the application of the Councils affordable housing
objectives.
Executive summary
2. In 2010, ACPL assumed management of a legacy project from Waitakere City Council to
develop a Marine Industry Precinct (MIP) on 20ha of land at Hobsonville Point.
3. Despite developing a close working relationship with the marine industry, redesigning the
MIP complex and launch facilities to meet industry needs, obtaining all consents, and
initiating national and international marketing of the facility; there has been no sales of land
at the MIP for boat building premises, nor any significant pre commitment.
4. In May 2013, the Strategy and Finance Committee considered the future of the Hobsonville
Point land and resolved to future-proof two options. The first was a 20ha residential
development of the site. The second was a combined residential marine industry precinct
solution of up to 10ha marine industry, and 10ha residential. The potential for up to 10ha
marine area was on the basis that a minimum of three pre-sales was achieved by financial
year 2015/16. If not the full 20ha would be committed to residential.
5. Four fundamental factors have changed since the May 2013 decision of the Strategy and
Finance Committee which impact the potential development options at Hobsonville.

a) There have been no substantive offers by the marine industry to buy and develop at
Hobsonville. In fact, the only company that had entered some form of arrangement to
locate to Hobsonville exited the site in December 2013.

b) There are, and have been, statements that one or more operators may purchase at
Hobsonville if superyacht contracts can be secured. However this has never
eventuated, and there is no realistic prospect before ACPL that provides comfort that a
thriving and viable MIP can be established at this location.

c) Waterfront Auckland is currently working on a marine strategy, and as part of that is
considering how best to use Site 18 in the Wynyard Quarter to support the marine
sector. Site 18 will, in all likelihood, be the new location for Emirates Team New
Zealand. The strategy will consider options for the use of the parts of the site not
occupied by Emirates Team New Zealand.

d) A residential master plan for the 20ha development has clearly demonstrated that a far
better urban design solution, including a minimum 10% affordable housing component,
can be achieved at Hobsonville Point if the whole 20ha is comprehensively planned for
residential, local centre and mixed use development. To preserve the 10ha MIP, distorts
the residual 10ha land for residential development.

e) The introduction of the Housing Accord and the opportunity for a SHA at Hobsonville
Point, has brought forward the opportunity for the Council to achieve its housing policy
objectives.
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6. The financial implications of this decision are very significant for the Council and its
ratepayers. This is particularly so in the context of the pending LTP, where there is a need
to prioritise expenditure to achieve best overall results.
7. The 2011 business case for the MIP, as presented by ACPL and approved by the Council,
indicated that the 20ha Marine Precinct would result in a loss of around $9.1m.
8. The 2013 review which approved the reduction of the MIP to 10ha with the residual land
becoming residential concluded a loss of $7.6m. This would now be materially greater. At
the same time it was also calculated that should 20ha be sold as residential it would return a
$1m dollar surplus.
9. The predominately residential development now recommended by the ACPL Board will
result conservatively in the Council getting back everything spent to date on this site, some
$30m.
10. It should be noted that all these figures are excluding considerable holding costs. The
predicted 2013 loss for a 10ha MIP would also increase given construction cost increases
since this date.
11. In essence, in the view of the Board of ACPL, the Council faces a clear choice. On the one
hand it can opt for the certainty of a significant housing outcome, already identified as a top
priority, together with a material financial benefit for ratepayers. On the other hand, it can
opt for uncertain, possible but not likely, economic development benefits of a MIP.
12. The conclusion of this report is that the full 20ha of land at Hobsonville Point be committed
to residential development at this time and that the following recommendations be adopted.

Recommendation/s
That the Auckland Development Committee:
a) note that despite extensive marine industry consultation and national and
international marketing of the marine industry opportunities at Hobsonville, no
presales were achieved, nor is there any current substantive prospect of presales.
b) note the marine industrys view that the refit industry offers prospects for the New
Zealand marine industry, and that Waterfront Auckland offers opportunity for the refit
industry, in addition to other options that are available in the region.
c) note that the urban design solution for a comprehensive 20ha development at
Hobsonville Point is a significantly better urban design solution compared to a master
plan which attempts to preserve a 10ha MIP in the interim.
d) note the significant demand for additional housing within Auckland as outlined in the
Auckland Housing Accord, and the opportunity the 20ha Hobsonville Point block
provides to assist in furthering the Councils housing objectives.
e) note that ACPL continue to provide interim accommodation for the one short-term
tenant which remains on the Hobsonville site, subject to agreeing appropriate terms
to exit the premises.
f) agree that Council not proceed with a MIP at Hobsonville Point and that no further
work be undertaken on the MIP apart from existing contractual obligations.
g) approve the full 20ha of Hobsonville Point be committed for residential development
and associated ancillary activities at this time.
h) endorse the 20ha Hobsonville Point block being developed for predominantly high
intensity residential development with a mix of typologies and incorporating a local
centre/mixed use precinct.
i) endorse the affordable housing offer of a minimum 10 per cent up to 15 percent of
the Auckland Regional median house price.
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j) agree ACPL be authorised to seek a SHA classification for the remaining 10ha block
at Hobsonville Point.
k) agree that Launch Road be vested as a Public Road.
l) ask ACPL to advise the marine industry of this decision and the reasons for it; and to
thank the industry for its attempts to activate this precinct over the last three years,
and to encourage the industry to continue working with Waterfront Auckland and
ATEED on refit options.
Comments
Context
13. Following the Government decision in 2000 to close the Hobsonville Air force base,
Waitakere City Council sought to establish a MIP at Hobsonville Point.
14. This was for two reasons. The first was to promote economic development in support of the
marine industry in Auckland, and a view that the industry would significantly benefit from the
opportunity to cluster at a single location. The Hobsonville Point land was originally seen as
a significant opportunity for the marine industry because it was one of the very few locations
on the Auckland Waterfront which was close to the harbour with deep water access, albeit
with height limits due to the Auckland harbour bridge. The second reason was to assist in
providing local employment.

15. The MIP was seen as offering benefits to Auckland in terms of:
Creating a base and home for the Auckland marine industry;
Promoting economic development;
Creating the opportunity for the clustering of land extensive superyacht builders; and
Providing local employment.

16. The disadvantages of the site were seen as:
The separation of the MIP land from the harbour which requires expensive infrastructure
to launch and retrieve vessels
The amount of dredging and up front capital input to create the facilities;
The inability to bring tall masted vessels to pass under the Harbour Bridge; and
The disproportionately high expense for the short term refit of vessels due to launching
costs and in some cases the removal of masts from vessels.

17. This project was adopted by the Auckland Council as a legacy project in 2010 and was
placed under the management oversight of ACPL.
18. In 2010, there were two superyacht businesses operating on short-term leases, at
Hobsonville one on the ACPL property, and one on adjoining land owned by HLC. The
purpose-built superyacht Sovereign Building remained effectively vacant.
19. By 2011 the land was acquired and a comprehensive development plan (resource consent)
approval was granted. In addition ACPL revised the Masterplan and review of the launch
infrastructure in consultation with the marine industry. Funding approval was received from
the Strategy and Finance Committee in September 2011. ACPL indicated to the marine
industry that if the necessary level of commitment (three significant committed purchasers)
was achieved then the Council would trigger the development process.
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20. ACPL instituted a significant review of the MIP in 2012 and worked with the marine industry
to ensure the 20ha precinct was workable and efficient for the marine industry. All the
necessary resource consents were obtained, including an amendment to the
Comprehensive Development Plan (CDP).
21. The development needed significant capital injection at the beginning of the project, to put in
place the necessary infrastructure to get 100m long superyachts from the harbour to the
MIP. This required special roading, ramps / slipways and dredging. The government,
through NZTE, committed $2 million including GST to these enabling works as part of a
partnership between the Council and NZTE.
22. The marine industry was never able to make this level of commitment, and the MIP has not
been triggered to date.
23. A review of international trends in the superyacht marine industry, and discussions with the
marine industry in 2013 identified that there was minimal prospect of the New Zealand
marine industry needing 20ha at Hobsonville.
24. At the same time, the Council was developing the Auckland Plan the first time the region
would benefit from a fully integrated strategy for Auckland. This plan identified a number of
key strategies for Auckland. Two critical strategies are particularly relevant to this issue,
being the Councils housing objectives and economic development objectives.
25. In May 2013, the Strategy and Finance Committee considered all matters relating to the MIP
at Hobsonville. A copy of that decision is appended as Attachment A. In essence, the
committee resolved:
To reduce the MIP from 20ha to 10ha, recognising the feedback from the marine industry
and analysis of international trends that there was minimal prospect of needing the full
20ha.
That the residual 10ha should be committed to housing, and that the land should be
zoned Residential.
To retain the opportunity for the marine industry for up to 10ha of land at Hobsonville
while the Unitary Plan was going through the statutory process or until the 2015/16 year.
That if the marine industry could secure the necessary three significant presales from
major boat builders, then the MIP would be triggered.
That if it could not be achieved by the time the Unitary Plan became operative in
2015/16, then the remaining 10ha would also be committed to housing.

Current marine industry activity at Hobsonville
26. Following this Committee resolution, and in line with the May 2013 resolutions, in order to
future proof the MIP, ACPL has:
Engaged with the marine industry on the strategy for the Yard 37 project (MIP)
articulating the parameters of ACPLs involvement and the required pre-commitment of 3
significant boat building presales.
Secured approval for comprehensive development plan (resource consent) for the 10ha
site and have also secured resource consent for an amended road network design
around the MIP.
Progressed in line with the Infrastructure Funding Agreement (IFA) between HLC &
ACPL to develop joint infrastructure to service the area. HLC activated the Launch Road
section of these works in 2013. This required the roading and associated infrastructure
to be fully designed and constructed to MIP standards which is currently underway.
Negotiated with NZTE with a view to extending the $2m Major Regional Initiative (MRI)
grant for a period of up to 3 years.
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27. To date there has been no substantiated interest in the MIP from the boat building/marine
industry necessary to trigger the development. Nor is there definite interest in the
foreseeable future.
28. One superyacht operator did try and establish in the former Sovereign Yachts building.
However, this operator was unable to make its operation work and exited the premises in
December 2013.
29. A second operator who had a lease of a former hangar building on HLC land adjoining the
MIP, and who was targeted to transfer onto MIP land, has closed down its business and also
exited the Hobsonville Point area.
30. The third operator has a month to month licence to occupy and remains on-site in a former
wasp hangar building within the MIP 10ha block. However, the nature of workload for this
business means it is not in a position to commit to a full lease or purchase of the premises.
31. Recently a major boat builder has indicated that it may have a possible boat order towards
the end of the year. Should the order materialise, it states it may be in a position to
purchase land for the boat building operation. If this eventuates, there would still be a
shortfall of two further significant boat building sales to achieve minimum needed. There is
still no certainty around an agreed contract for the job and there have been previous similar
situations of potential boat building sales and nothing has eventuated.
32. Lastly, it is important to acknowledge the current situation. In May 2013, when the
resolutions were made by the Strategy and Finance Committee there was one prospective
sale and two existing operators at Hobsonville. The current reality is that there is now only
one operator at the MIP base, on a month to month licence paying less than market retail.
Establishment Costs
33. The Hobsonville Point land was originally seen as a significant opportunity for the marine
industry. This was because it was one of the very few locations on the Auckland coastline
which was close to the harbour with deep water access, albeit with height limitations for tall
masts due to the Auckland Harbour Bridge clearance limitations.
34. The MIP land is some 400m from the waters edge in an elevated area, to be accessed from
a deep water channel across tidal flats.
35. To turn the MIP into reality, there is still significant investment required in creating buffer
zones, dredging channels, constructing slipways and boat haulage areas, and realigning and
building major roading infrastructure so that boats can be successfully launched and
retrieved.
36. The justification for this ratepayer expenditure was subject to three significant boat building
presales being obtained, as outlined above.
NZTE Funding
37. NZTE agreed to fund $2 million towards the establishment costs as a contribution towards
the economic development of the marine industry.
38. NZTE has recently advised that because of the length of time that this potential project has
taken and the delays incurred in securing presale commitments at Hobsonville, that the $2
million fund is no longer available from June this year.
39. This means that should the Council wish to initiate the MIP, then the cost to the Council will
increase by $2 million. This is not budgeted for within the long-term plan.
40. NZTE could be approached to instead lift its funding towards the development of Site 18 as
an alternative investment to support the marine industry.

Marine Industry View
41. ACPL has had further discussions with the marine industry over the current situation and the
issues associated with the inability of the industry to confirm presales commitments to the
MIP.
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42. The marine industry view is set out in the letter from the Marine Industry Association and
appended to this report as Attachment B.
43. In summary, the marine industrys view from their letter and discussions is that:
The Council should maintain the opportunity for the 10ha MIP at Hobsonville.

The belief that the industry will eventually be in a position to support the MIP location
through boat building and refit contracts.

That the marine industry has been through a significant time of downturn due to the
international financial situation and a very significant reduction in new orders for
superyachts over a number of years.

The number of new orders for superyachts internationally is starting to grow in a number
of countries.

New Zealand may not obtain a strong position in the new build superyacht industry for a
variety of reasons, particularly around the relatively cheaper costs that can be achieved
in other boat building nations. However, the industry see a significant future for the
retrofit industry within New Zealand.

There is strong economic development potential of the marine industry for New Zealand.

The MIP should be made available for small operators as a way of establishing the
precinct.
ACPL Assessment
44. From ACPLs perspective:
a) The MIP has been ready to proceed to physical works since late 2011 and has only
been deferred because of the inability to get the pre-commitment of three large
superyacht builders to locate at Hobsonville.

b) There is still no substantive commercial interest in the site, nor firm prospect of the 3
presales being met. However, the following points should be noted:

Waterfront Auckland has committed berthage and land to the marine refit industry
at Wynyard Quarter. This operation is clearly attractive to the market, based on
the number of superyachts that have stayed in New Zealand for refit purposes.
Further, Wynyard Quarter accommodates a marine cluster consisting of numerous
marine industry support activities and operations. Wynyard Quarter is the logical
location to provide land for the retrofit industry.

The concept of making Hobsonville Point available for small operators to try and
grow the industry does not provide a solution. There are a number of small boat
operators throughout Auckland located within industrial areas. They operate well
in these locations and there are no particular requirements as to why they would
need to locate specifically at Hobsonville Point.

The purpose of the Hobsonville Point MIP was to attract mega boats or
superyachts that could not be accommodated elsewhere in Auckland, and the
necessity for this size and weight of vessel to have a direct coastal location
(including deep water access). These are the primary elements that support the
Hobsonville Point land to be committed to marine industrial purposes rather than
residential. There is not a shortage of land within Auckland to provide for small
marine operators.

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45. ACPL sought a report from Auckland Tourism Events and Economic Development on the
future of the marine industry. This work was in addition to the research previously
commissioned by ACPL. It is noted that the findings were generally consistent.
46. That report identified:
The fundamental change in focus that is occurring in the New Zealand marine industry
from the manufacture of new vessels, to refitting existing vessels.

This change has been driven off the high New Zealand dollar, new manufacturing
capacity in competitive markets, particularly Asia, and the lasting impact of the global
financial crisis which has reduced demand for new superyachts.

This has seen a significant reduction in the demand for new superyacht construction
into the New Zealand market.

While New Zealand enjoys a high reputation for its boating craftsmanship and
innovation, nevertheless the number of new vessel orders for New Zealand operators
remains very low.

Waterfront Auckland and their work in attracting the refit industry, has demonstrated the
significant economic development of this part of the industry.

47. It had been hoped that the May 2013 resolutions and Councils commitment to the 10ha MIP
would prove a sufficient catalyst to attract marine industrial operators to Hobsonville. This
has not happened.
48. These factors have led to ACPL seeking a final decision on the MIP now rather than in the
financial year 2015/16 as resolved by the Strategy and Finance Committee in May 2013. As
noted above in this report, several factors have changed since that decision, which warrant a
reconsideration of the Councils position on this matter.

Councils Housing Agenda

49. Bring forward a decision to develop the full 20ha of the MIP land, will offer a significant
opportunity to progress Councils Housing Agenda.
50. The Auckland Housing Accord also identifies the importance of bringing significant additional
areas of residential land/housing to market within a shorter time frame to assist in the
significant growth Auckland is experiencing.
51. Hobsonville Point is capable of making a good contribution to the Council's housing agenda.
The 10ha of the Council land already identified for residential development was confirmed as
a SHA in 2013. This will assist in expediting the development of this area providing
approximately 267 homes. If the remaining 10ha was to be confirmed for residential at this
time and identified as an SHA this would effectively double the number of homes that can be
developed in the short term to assist in meeting Aucklands residential growth targets
52. The full 20ha residential future can be designed in a comprehensive and integrated manner.
This is as opposed to a design which needs to accommodate a possible future industrial
precinct, which includes a substantial buffer around the edge and limited public through
access due to safety and security requirements associated with a MIP.

Affordable Housing
53. In addition the bringing forward of the housing programme, will further enable the
promotion of affordable housing as a component of the development.
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54. Under the Auckland Housing Accord and the PAUP, 10% of new homes are targeted to
meet the Councils affordable housing policies. These policies target a range of criteria
built around the house sale price being equal or less than 75% of the median Auckland
regional house price.
55. This report recommends that at least 10 percent of new homes meet the Councils
affordable housing objectives with opportunities being explored to exceed this
expectation
56. Such an approach would enable various methodologies or approaches to affordable
housing to be tested and developed by ACPL.

Residential master plan
57. ACPL has commissioned a master plan for residential development of the full 20ha MIP in
Hobsonville Point. The purpose of this work has been to evaluate the outcomes that could
be achieved if the full 20ha were developed for this purpose. This exercise also enables the
benefits and costs of the two options to be analysed (i.e. 10ha vs 20ha). The residential
block is referred to as The Airfields.
58. The master plan provides for high quality intensive residential development within the 20ha
block. The development is consistent with and complementary to the form of development
throughout Hobsonville Point.
59. The master plan provides for a mix of housing typologies to promote a diverse residential
community.
60. The development of the draft master plan has highlighted the following advantages of a
20ha residential scenario:
Increased housing supply approximately 673 versus 267 subject to usual regulatory
processes;
Increased affordable housing supply;
Opportunities for the inclusion of complementary mixed use developments, which
results in local employment opportunities and a small local centre based in the existing
wasp hanger building. This will build on the similar development proposed immediately
opposite the MIP land on Hobsonville Land Company property;
Better integration with proposed residential development on adjoining sites;
Enable consistent and enhanced urban design outcomes, including improved linkages,
public connections, open spaces and street frontages; and
Cost effective infrastructure provision.

61. HLC has resource consent for mixed use development on its land to the north of Launch
Road and adjoining the Council land. HLC see this land as providing a community hub at
this eastern end of Hobsonville Point adjacent to The Landing and the ferry terminal. The
proposed ACPL master plan for this block complements this approach. It provides an area
for a local centre based on the existing heritage Wasp Hangar building. It also provides
opportunities for mixed use including employment opportunities.
62. In accordance with the Strategy and Finance committee resolutions, the master plan has
been prepared on the basis of a 20ha development. This plan was then adapted to enable
the work to be staged.
63. HLC is the owner of adjoining land on all four boundaries of the 20ha ACPL block. HLC has
been consulted over the development of the master plan. It supports the 20ha development
at The Airfields and supports the master plan and the urban design this plan will facilitate.
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64. The work on the master plan has identified that preserving the 10ha MIP and staging the
development significantly compromises the urban design outcomes for the 20ha block.
While a technical solution can be found, the unusual L-shaped block of land which would be
developed for residential purposes creates inefficiencies in terms of street layout and results
in a significant compromise of the overall master plan. A far better urban design solution
integrating HLCs land can be achieved if the full 20ha site is treated holistically.
65. Compounding this, the most cost-effective way to provide the utilities to service the 20ha
block is to gain access from Hobsonville Point Rd/Launch Rd. The 10ha MIP block fronts
Launch Rd. This impacts in two ways. It increases the cost in providing utility services
located so as to avoid the MIP land and there is inefficiency in having fewer sites available to
fund infrastructure costs.

Employment Opportunities

66. As part of the strategic review of the 20ha by ACPL in 2013, ACPL investigated the option of
part or all of the land being used for industrial purposes. This assessment recognised the
economic development and employment objectives which were part of the rationale behind
the original MIP.
67. As reported to the Strategy and Finance Committee in May 2013 as a result of this strategic
review ACPL concluded:

The use of the site for industrial purposes is not the highest and best use of the land. The
indicative realisable land values are less than the existing marine precinct and significantly
less than would be achieved from a residential development. There already exists enough
industrial land in West Auckland to satisfy 15 20 years of demand. In addition the nature
of this land on the coast within the character area of Hobsonville Point including
fundamental limitations such as access, character, location and residential neighbours
means it is not considered a viable financial proposition going forward, or a suitable
location for general industry.

68. When the MIP was being considered, a suite of plan changes were being advanced by
Waitakere City Council to create employment in the northwest. These included the
Westgate land (called Massey north), the Hobsonville Corridor and the MIP. All three areas
were successful through the statutory process and were made operative. Westgate and
Hobsonville Corridor provided for a broad range of employment and business uses. The
MIP as stated was a niche industrial area confined to marine industrial activity.
69. Westgate is now subdivided and development is commencing which provides significant
ready to go business and employment opportunities now. The Hobsonville corridor
remains undeveloped at this stage, but fully zoned for employment activities when the
market demand occurs.
70. Very significant areas of undeveloped industrial and business land are zoned along the
Hobsonville Corridor. This provides approximately 70ha of development land for a broad
range of light industrial and employment activities. None of this land is yet developed. In
addition, significant commercial retail and business land is zoned as part of the Westgate
development. Core infrastructure is currently being provided into this area and development
is commencing. This represents approximately 75ha of available industrial land plus
significant business land.
71. It is noted that the development at Westgate (formerly Massey North) has progressed
significantly since May 2013 with completion of core infrastructure such as roads,
stormwater, parks and services and private sector development now happening. There has
also been movement towards the development of Hobsonville Corridor with earthworks
occurring as part of the delivery of core infrastructure.

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72. In summary the analysis of the Northern Strategic Gateway (NorSGA) and north-western
corridor has indicated that there is significant vacant industrial and business land targeted at
the Hobsonville area, Westgate, and in the future, Whenuapai. This land is very extensive
and better suited to industrial development in terms of proximity to motorways and the
metropolitan centre of Westgate. Committing Hobsonville Point from industrial to residential
purposes will not constrain the opportunity for employment-generating activity or economic
development generating activity to locate within the north-western area.
73. In addition, the 20ha ACPL master plan makes a complementary provision for 2ha to 3ha of
land adjoining Launch Rd which would be suitable for mixed use development. This is also
supported within ACPLs submission to the PAUP. These activities are focused on the Wasp
Hangar building (a heritage structure), which the ACPL submission to the PAUP seeks a
Local Centre zoning for. It extends further east along the Launch Rd frontage, with the
opportunity for business and/or residential activity. This would complement and strengthen
the HLC proposal for a neighbourhood centre on their adjoining land which has approval as
part of the Sunderland Comprehensive Development Plan.
74. While this area of land is significantly smaller than the 20ha, the nature of business and
employment activity is that it is potentially much more intense. It would provide for a
range of activities, including general business, office and other employment-generating
opportunities. The combination of the HLC and ACPL proposal for this mixed use hub
would provide realistic opportunity for employment activities. The most logical opportunity
is niche retailing (supported by off i ces and ot her rel at ed busi ness) associated with
the unique location of Hobsonville Point whilst servicing the Hobsonville Point community.
Consideration
Local board views and implications
75. ACPL has presented this review to the Upper Harbour Local Board in a workshop on the 11
th

of April 2014. The Board has been generally supportive of the proposal. It has verbally
provided feedback on the 20ha Master Plan. This feedback will be considered further in the
ongoing development of the Master Plan.
76. The Local Board at the workshop verbally supported the recommendation to terminate the
MIP and to commit the full 20ha residential development.

Consultation
77. As previously stated, HLC is the adjoining land owner on all boundaries of the MIP. ACPL
has fully consulted with HLC over the development of both the MIP and The Airfields
Master Plan.
78. The HLC position is that it fully supports a 20ha residential development at Hobsonville Point
and would also support a 10ha residential development and 10ha Marine Industrial Precinct.
However HLC would not support a MIP at Hobsonville Point of a significantly lesser area
than 10ha. Their concern is that a smaller MIP of (say) 5ha could have a negative urban
design outcome and cost impact on the area.
Maori impact statement
79. There has been no engagement in the preparation of this report. However, the future use of
the Council 20ha has been under discussion since the development of the original Plan
Change 13 to the Waitakere District Plan and through the preparation of the Proposed
Auckland Unitary Plan. Iwi was extensively consulted on the development of the Draft
Unitary Plan.
80. Consultation was also undertaken on specific consents for the Marine Industrial Precinct,
particularly in relation to storm water management and water treatment.
81. If the Committee adopts this report, then ACPL will prepare the necessary framework plan
and consents.Engagement with iwi will be a necessary part of the formal regulatory process.
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Financial
82. The purchase and work on the MIP by Waitakere Properties Limited and ACPL has been a
very significant investment over the last decade.
83. If the MIP proceeds at 10ha, ACPL then will need to install the Launching Ramp and
Slipway, Forecourts and Hardstands. As already noted, NZTE has advised that because of
the length of time that the project has taken and the delays in securing presale commitments
at Hobsonville, that the $2 million fund is no longer available from June this year.
84. This means that should the Council wish to initiate the MIP, then the cost to the Council will
increase by a further $2 million. This is not budgeted for within the long-term plan.
85. The 2013 review identified a projected loss of $7.6m for the total residential/MIP project
should the 10ha MIP be activated. Further review and analysis undertaken by ACPL has
confirmed that the loss would be higher than anticipated at the time of that report.
86. If the development proceeds as 20ha residential, then in the current market the Council will
be able to give effect to its residential objectives and conservatively recover Councils costs
in this land.
Implementation
87. If the Committee adopts this report, then the following actions will be necessary to give effect
to the 20ha master plan.
a) ACPL will seek a SHA to be applied to the remaining 10ha of the MIP block.

b) ACPL will seek a qualifying development under the Housing Accord and Special
Housing Areas Act for the master plan, covering the full 20ha of the MIP block at
Hobsonville Point.

c) ACPL will move to implement the Hobsonville development under the normal
delegations and processes of the Council and ACPL.

d) ACPL will communicate the decision and the reasons for it to the marine industry and
thank them for their attempts to activate the MIP over the last four years.

e) ACPL will hand over to Waterfront Auckland all information, material and potentially
any surplus assets on the MIP to assist them in their proposals to expand refit facilities
for the marine industry at Wynyard Quarter.

f) Launch Road will no longer need to be a private road and will vest as a public road
as part of the subdivision consent process for The Airfields.

Attachments
No. Title Page
A Decision of the Strategy and Finance Committee 2013 17
B Letter of the Marine Industrial Association 35
Signatories
Authors Don Greenaway Development Manager
Allan Young Manager Development
John Dunshea Manager City Transformation
Authorisers Penny Pirrit - Regional & Local Planning Manager
David Rankin Chief Executive, Auckland Council Property Limited
Roger Blakeley - Chief Planning Officer
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