Westgate Town Centre Ltd must pay Auckland City $11.8 million as its share of undergrounding high voltage transmission lines near the west Auckland retail project despite Westgate’s complaints Auckland messed up the entire development.
Westgate says it will be forced to borrow the entire eleven million dollars at commercial rates to make payment while it has its own $33 million claim against Auckland still outstanding. Westgate alleges Auckland is dragging the chain on contractual obligations to support its retail development. Westgate has its origin in deals struck with the former Waitakere City Council in 2004. Waitakere was later absorbed into an expanded Auckland supercity. The High Court was told Westgate construction is now governed by some 23 separate contracts between Auckland City and joint venture developers, NZ Retail Property Group. These contracts were signed variously between 2004 and 2017.
Westgate Town Centre sued alleging Auckland had not carried out its part of the deal. In particular, it says Auckland has hampered traffic in and around the development after establishing roading with high-volume traffic flows that hinder promised ready access to community and retail facilities. It also says Auckland has failed to provide a promised bus interchange and has delayed construction of promised library and community centre facilities. Westgate says it has been left with a dysfunctional commercial precinct instead of the compact, integrated town centre promised.
Westgate sued Auckland for $33 million, including a demand for return of $2.6 million part-payment already made for its share of power undergrounding costs. Westgate argued it was only liable for undergrounding if the town centre was developed as agreed. Auckland City counterpunched with an $11.8 million summary judgment claim for Westgate’s remaining share of undergrounding costs. Auckland has paid Transpower in full for the work. Justice Wylie ordered Westgate pay the $11.8 million. There was no argument the money was due and owing, he ruled. Westgate’s share of the undergrounding cost had a drop-dead final payment date in October 2017, Justice Wylie said. The contract was not subject to any conditions or right of set-off.
Westgate has to go to a later full court hearing on its separate $33 million damages claim against Auckland City.
Westgate Town Centre Ltd v. Auckland City – High Court (21.09.18)
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