Widely viewed as a retail park with airport attached, Auckland International Airport expansion has been protected by a Court of Appeal ruling that undeveloped land not currently being used for airport activity need not be offered back to former owners.
The Craigie Trust, former owners of 36 hectares compulsory acquired in 1975 for airport expansion argued that legislation governing land taken for public works gave it first option to recover the land on payment of the current market price. Craigie was looking to buy the land at its then market price of February 1982, arguing that was the date when the land was no longer to be used for an airport. Craigie’s 36 hectares has in part been converted to airport use with major roads and an avgas pipeline across its former land. It said the Trust was agreeable to the Airport leasing this land should a buyback be ordered.
Craigie argued that its land was compulsorily acquired for use as an “aerodrome” and construction of shops and amusement parks did not amount to use as an “aerodrome”.
The Court of Appeal said the word “aerodrome” had fallen out of use. It should not be read too narrowly given current commercial practice at the world’s major airports. The Court said extensive ancillary services are required in an airport’s environs not only for tourists passing through, but also for use by airport staff.
The Court ruled the 36 hectares were still required for “public works”: future expansion as part of airport activity.
And even if the land wasn’t required for expansion, the Court ruled it would be impracticable and unreasonable to allow Craigie to buy back. The entire airport precinct had been radically altered over the passage of time.
McElroy v.
04.10.001