Shelly Bay developer walks away

Friday, 1 September 2023

Wellington’s controversial Shelly Bay development has been canned, with Hollywood power couple Sir Peter Jackson and Fran Walsh purchasing the land.

Developers Shelly Bay Taikuru Limited and The Wellington Company announced with “deeply mixed emotions” they would not be going ahead with the planned housing project.

It had endured years of opposition and protest – and was mostly recently the scene of a suspicious fire.

Jackson and Walsh said in a statement it was a “wonderful coastline that holds a great deal of cultural and historical significance”.

“Suffice to say we are looking forward to restoring the natural beauty of the bay.”

Ian Cassels, of The Wellington Company, said it had been an incredibly challenging project on multiple fronts with years of conjecture.

“An enormous amount of work has gone into the project to date, and we’d like to express our sincere thanks to those that have supported and assisted us along the way.”

Cassels wished Jackson and Walsh the best.

“Whilst the project's cancellation brings about a shift in plans, it opens the door to opportunities for Shelly Bay that will hold different kinds of value for the community and future generations.

“It also enables us to refocus energy into our affordable housing initiatives, which to me is ultimately more important.”

Former Wellington mayor Andy Foster – a noted critic of the plan – described the news as “fantastic”.

“I’m absolutely thrilled because to me, what was wrong with the development all along, was that the community was cut out completely of having any say in it, and that was a decision made by council with the support obviously of The Wellington Company.”

Why is this development so controversial?

The first controversy was the decision to fast-track resource consent under special housing legislation, which meant little-to-no council input.

Then came the sale of Taranaki Whānui land to Cassels. Because the sale of the land was seen as a major transaction, it had to go to a vote of members and 75 per cent had to vote in favour.

This failed and instead the parcels were sold separately. These were smaller transactions so a vote was not needed. By the time all four parcels of land had sold – for about $12m – Taranaki Whānui made a net loss and the legitimacy of that sale is being questioned in an open High Court case.

It is also controversial because of roads and pipes. The council agreed it would pay half the $20m cost – or up to $10m from ratepayers – to bring infrastructure up to scratch.

Later, a 525-day occupation at the site came to an end in May 2022. The protest group, Mau Whenua, argued Wellington iwi Taranaki Whānui should have never sold its land there to Cassels and started to occupy the bay when the Wellington City Council agreed to sell and lease its portion of the land to Cassels.