Editorial: Reading Cinemas sale confirms Wellington Mayor Tory Whanau’s deal was a dud
EDITORIAL
In February this year, Wellington Mayor Tory Whanau told her fellow councillors it would further “kill” Courtenay Place if they didn’t back a $32 million deal with a multinational company.
The deal was to buy the land under the Reading Cinemas complex so the international owners could use the money to finally fix the quake-prone building and get it back open.
It was an idea met with fierce opposition by some – councillor Iona Pannett called it corporate welfare and councillor Ray Chung said it was the worst commercial deal he had ever seen.
It was also shrouded in secrecy, only adding to councillors’ unease and angst. Councillor Ben McNulty took to social media to try to explain to ratepayers why he felt so conflicted, but ultimately voted for the deal, which he described as a “carrot”, given the council had no sticks to force Reading to fix the building.
“So on the choice of using a generous carrot with guaranteed outputs versus leaving the site to rot until 2035 (which Reading’s financial position means they will do), I’ve taken a massive punt on backing the former.”
Ultimately it was this narrative, that without council help the building would sit empty for another 10 years, that won Whanau the support she needed.
“If we don’t move this forward, we look like we are not about progress and I’m sorry, but that was not what I was elected to do,” she told her colleagues.
It was a victory for the mayor, albeit short-lived. Two months later, council officials decided the deal did not stack up, ending negotiations with Reading International in April.
Staff said they were not able to reach the best possible outcomes for Wellingtonians.
At the time, Reading CEO Ellen Cotter said the company would “take time to consider its options”.
“We believe the redevelopment would have been very positive for Wellington. We don’t see how the process and its abrupt termination can be good for Wellington City.”
Three months on and a possibility nobody seemed to consider during the past year of controversy has emerged – the derelict Reading Cinemas complex is for sale.
The site – described as an eyesore, a “big black hole” sucking the life out of central Wellington, the landmark ratepayers had to help fix to ensure it wouldn’t just be left to rot – appears to be sorting itself out.
Commercial real estate agency JLL has dubbed it “Wellington’s most important development opportunity”.
“Development opportunities are extensive, with strong demand in the heart of Wellington City for premium residential developments, retail spaces, restaurants, cafes, hospitality, hotels and entertainment venues”, the site’s listing says.
The sale has been widely welcomed, including from the mayor, who said she was pleased something was finally happening with the site.
“This is a great opportunity for someone passionate about Wellington to do something awesome with such a fantastic bit of real estate,” Whanau said.
“I urged Reading to continue to explore development deals. This site has great potential and if Reading is unable to do that, I am very pleased that they are opening up the opportunity for others to do so.”
It’s clear Reading has been unable to develop the site for years, and the fact it’s now selling it – within months of the council deal ending – confirms just how attractive and last-resort the deal was to the multinational.
Putting the site up for sale is the right thing to do, paving the way for development and revitalisation of a key part of Wellington’s city centre.
Funnily enough, it achieves exactly what Whanau was trying to do with her doomed deal, but without ratepayers having to pay a cent.
Rather than further killing Courtenay Place, the deal falling through appears to have delivered it a lifeline.