Struggling to capitalise on its $8.6 million purchase of a stalled Marsden Point subdivision, John and James Sax’s Marsden City Ltd Partnership placed temporary fences and water troughs across the 82 hectare property, then stocked the land with cattle, claiming the subdivided land should be rated as farmland.
Whangarei Distict Council said no. The High Court agreed.
Subdivided into 87 separate land titles with infrastructure vested in the local council, all roading, lighting and drainage are in place.
Sax investors bought the project from Westpac receivers in 2017 for $8.6 million. Original developers defaulted on a $56 million Westpac loan.
The subdivision formed part of Whangarei District’s anticipated satellite city of some 40,000 people north of Ruakaka, near Marsden Point. It was previously farmland.
Subdivided lots proved difficult to sell.
Sax’s Marsden City Partnership also found sales slow.
They claimed the land, reworked into nine paddocks, now operated as a farm and should be rated as such.
The court learnt that farming operations did not cover costs, and were unlikely to ever do so.
Between 75 and 150 head of cattle grazed on site. Pasture cover was not ideal for livestock.
High Court stated the Sax’s arrangement was no more than an attempt to achieve de facto postponement of rates as a farm, while awaiting a rise in market interest before resuming marketing of individual subdivided lots.
Land Valuation Tribunal ruled previously that it was very unlikely the reworked subdivision would ever be on-sold as a single farming unit.
Marsden City Limited Partnership v. Whangarei District Council – High Court (5.06.25)
25.134