It
is easy to spend money when it is other people’s money: a maxim exemplified by
the Historic Places Trust claiming domain over earthquake-risk properties in
Wellington.
Lambton Quay Properties,
owner of the Harcourts building in downtown Wellington, is in a bind. The City Council has ordered the building be either
earthquake-strengthened or demolished in the next 25 years. Left in its present condition, the building
is a safety risk in the event of a major earthquake.
The High Court was
told that Lambton Quay applied to Council for a demolition permit after finding
strengthening costs were so high as to be uneconomic. Council refused permission on heritage
grounds. The Harcourts building is
listed as a category one heritage building under the Historic Places Act.
Faced with the
Kafkaesque dilemma of one arm of Council saying the building should be
demolished and another arm of Council saying demolition is not permitted,
Lambton Quay appealed to the High Court.
One ground of appeal
was the complaint that heritage designations impose a burden on building owners
without any contribution from the public who are the supposed
beneficiaries. Justice Collins said such
economic considerations are a matter for parliament and legislative
policy. It was not something a judge
could rule on.
Lambton Quay was
successful on other grounds of appeal.
The High Court
returned the case to the Environment Court for a rehearing. In particular, the Environment Court is
required to consider demolition if there is no reasonable alternative and is
also required to consider risks to public safety if the Harcourts building
remains as it is.
The Historic Places
Trust was ordered to contribute to Lambton Quay’s appeal costs.
Lambton
Quay Properties Ltd v. Wellington City – High Court (2.05.14)
14.018