The first stage of a $12.5 million project to improve and extend stopbanks for the South Westland tourist hot spot is on hold 10 months after a contract was first awarded by the council, because it cannot get affected party approval from Scenic Circle.
The council’s 2021-22 annual report, released last month, notes it is still to resolve the $30 million claim by the hotel group, relating to the inundation of the now abandoned former Mueller Wing in 2016.
"The claim is denied and will be defended by council with the backing of its public liability insurer," the report said.
The Westland District Council has also been sued by Scenic Circle.
Ms Mabin said the hotel chain’s refusal to sign had put the council in an unenviable situation.
It now had to wait for a statutory process taking up to 70 working days to get a formal remedy, given the impasse.
Construction of the stopbank should have been well under way by now and, with the known flood season still to come, the position the council had been left in was not acceptable, Ms Mabin said.
In December, the council lodged a limited notified consent for the stopbank, giving Scenic Circle 20 working days to respond. It lodged an objection on day 19.
This suggested the interests of the Franz Josef community were not at front of mind with Scenic Circle, she said.
The late objection and the statutory steps it triggered, including the appointment of a hearing commissioner, was an unwanted delay, she said.
Ms Mabin noted Te Rūnanga o Makaawhio had been helpful in trying to broker a faster solution, including to Scenic Circle.
Meantime, the council had again had to justify to the government the $12 million of "shovel ready" money already allocated towards the project.
"Our concern is that the Kanoa (MBIE) board have their next meeting and how this will be reflected at board level because of construction not starting."
Meanwhile, all of Franz Josef lived with the fear of another rainstorm and a repeat of previous floods.
The way it was heading the contractor, MBD, would have waited for a year to start the work, she said.
By: Brendon McMahon - Local Democracy reporter
