Council Application Results in Coro Mainstreet Liquidation

Posted by TCDC on 16/06/2014

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Coromandel Main Street Incorporated (Coro Mainstreet) has been placed into liquidation following its failure to pay costs over court proceedings involving the redevelopment of the Coromandel Four Square Store.

Both a High Court and a judicial review rejected Coro Mainstreet's case against Thames District Council (TCDC) over a decision not to notify Foodstuffs resource consent for a Four Square shop in the commercial zone of Coromandel Town.

The court ordered Coromandel Mainstreet to pay costs of $28,000 to TCDC and the National Trading Company of NZ (Foodstuffs NZ).

"This has still not been paid and the deadline for payment has long passed," says David Hammond, Thames-Coromandel Chief Executive. "We've now appointed a liquidator to recover the costs which is pursuing the Incorporated Society and not any individual," says Mr Hammond.

These proceedings will be heard at the High Court in Hamilton later this year. Meanwhile Foodstuffs is committed to continuing with the redesign of the Four Square at Coromandel Town. A start date for works to commence is yet to be determined.

Timeline of Events

2012

• The National Trading Company applies for resource consent to demolish a motel building in Coromandel Town and construct a new Four Square grocery store. TCDC grants the resource consent, which is not publically notified. 2013

• Coromandel Main Street pursues a judicial review. The issue is whether the TCDC officer who made the decision not to notify the resource consent application had sufficiently adequate and reliable information before them on which to make the decision not to notify lawfully. In particular, Coro Mainstreet contends that the report of an independent heritage assessor did not provide the decision maker with adequate and reliable information concerning the effects of the proposed Four Square on the environment.

• March. The judicial review concludes the decision not to notify the resource consent was not an error of law, all relevant considerations were taken into account and sufficient information was provided for. Judge Wylie also concluded the decision not to notify the consent was not unreasonable and Coro Main Street should pay costs of $21000 to the Thames-Coromandel District Council. Costs were also awarded to the National Trading Company. (Foodstuffs).

• April. Coro Main Street launch proceedings in the Court of Appeal through an application for stay in respect of costs. This latest round of litigation comes at a cost of around $30,000 and is paid for by the Ministry for the Environment's legal assistance fund.

• October. Court of Appeal Hearing. Reserved decision.

• December. Decision released.

2014

• February. The deadline for Coromandel Main Street to pay costs to TCDC and Foodstuffs

• May/June. TCDC Council appoints a liquidator to recover costs from Coro Main Street Incorporated