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Reserves Act
Hearings Panel
15 July 2022
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4. Mount
Cavendish Reserve - proposed new lease to The Christchurch Gondola Ltd
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Reference / Te Tohutoro:
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22/636591
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Report of / Te Pou Matua:
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Joanne
Walton, Policy Advisor, joanne.walton@ccc.govt.nz
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General Manager / Pouwhakarae:
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Mary
Richardson, General Manager Citizens and Community
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1. Purpose of the Report Te Pūtake
Pūrongo
1.1 The
purpose of this report is for the Hearing Panel to:
1.1.1 Consider
the submissions received through the public consultation process and all other
relevant information presented for a new ground lease to The Christchurch
Gondola Limited over part of Mount Cavendish Reserve.
1.1.2 Deliberate
and make a recommendation to the Council, as the decision-maker, to determine
whether a new ground lease for the applicant’s existing top terminal
building should proceed or not.
1.2 This
report has been written as a result of:
1.2.1 An
instruction from the Department of Conservation that, due to a legislative
change that now precludes renewals of existing leases, a new ground lease is
required for the building.
1.2.2 A
number of submitters on the proposed new lease indicating they wish to be heard
by a Reserve Hearing Panel in support of their submission.
1.3 The
decision in this report is of medium significance in relation to the
Christchurch City Council’s Significance and Engagement Policy. The
level of significance was determined by the medium level of city-wide interest
due to the prominent location of the gondola and the likely impact on those
people affected with regard to a long term existing occupation.
2. Proposed Officer Recommendations Ngā
Tūtohu
2.1 That
the Reserve Hearing Panel recommends that the Council:
2.1.1 Receive
and consider the information in the report, the submissions, and all other
relevant information received on the proposed new ground lease to The
Christchurch Gondola Limited for their existing top terminal building.
2.1.2 Approve
the granting of a ground lease, subject to section 59A of the Reserves Act
1977, and Part 3B (sections 17R and 17SC) of the Conservation Act 1987, to The
Christchurch Gondola Limited over approximately 1177 square metres of Lot 1 Deposited
Plan 61966 (held in Certificate of Title 37C/1204), part of Mount Cavendish
Scenic Reserve, (lease plan shown in Attachment A) for the purpose of an
existing upper terminal building for an aerial gondola, for a period of 30
years (including all rights of renewal).
2.1.3 Authorise
the Manager Property Consultancy to conclude and administer the terms and
conditions of the new lease.
3. Background Te Horopaki
3.1 Mount
Cavendish Reserve is a reserve of 26.0064 hectares in size adjoining the Summit
Road on the Port Hills. It is classified as Scenic Reserve under the Reserves
Act 1977.
3.2 The
Christchurch City Council administers Mount Cavendish Reserve by way of an
appointment from the Department of Conservation to control and manage the
reserve. The reserve is considered to be an asset of metropolitan
significance.
3.3 The
Christchurch Gondola Limited holds a lease with the Department of Conservation
(DOC) authorising a top terminal building on Mount Cavendish Reserve for an
aerial gondola operation. (Refer to Figures 1 and 2 for a location map
and photo of the building.)
3.4 The
lease was granted in 1991 pursuant to the Reserves Act 1977 and is due to
expire on 1 November 2023. The lease had a right of renewal for a further 30
years which the lessee had expected to be able to exercise.
Figure 1: Aerial
photo location map of Christchurch Gondola showing upper gondola station
outlined in yellow
Figure 2: Photo of upper gondola station
above Summit Road looking north-west
3.5 A
High Court decision in 2011 relating to Fullers Bay means that holders of
leases granted pre-1996 under the Reserves Act 1977 can no longer be renewed
and must be granted a new lease under Part 3B of the Conservation Act 1987.
3.6 In
2013, Councils were notified by DOC of the extension of the Instrument of
Delegation to allow for authorising bodies with appointments to control and
manage reserves to grant concessions under Part 3B of the Conservation Act
1987.
3.7 DOC
has therefore advised that based on the High Court ruling and the 2013 changes
to delegations:
3.7.1 The
right of renewal in the current lease can no longer be exercised.
3.7.2 It
is now the responsibility of the Council to grant a new lease under Part 3B of
the Conservation Act 1987 to authorise the continuation of the Christchurch
Gondola Limited activity in Mont Cavendish Reserve.
3.8 The
new lease will be on equivalent terms to the existing lease, updated to the
Council’s latest lease form to reflect changes in legislation since the
original lease was executed, for example, the Health and Safety at Work Act
(2015) and the Land Transfer Act (2017).
3.9 There
will be no change in the new lease to the footprint of the building.
3.10 Owned
by Christchurch Attractions and established in the 1990s, Christchurch Gondola
is a key local and visitor attraction. The top terminal building includes a
café for public use, function spaces for private events, and a museum
experience. It also hosts radio and data gear for a range of national and local
emergency, weather and electronic signalling suppliers and businesses.
3.11 The
top terminal building is privately owned. It is situated above the Summit Road
and does not have a vehicle access road (other than an unformed track for
emergency type access) or car-parking. The only access to the building other
than by the aerial gondola (which is also owned by the lessee) is on foot or
mountain bike over the adjoining reserves or the Summit Road.
3.12 The
top terminal building is a long standing occupation with substantial
expenditure outlaid for the facility and its associated infrastructure. Staff
have identified only one issue with the operation, management or activities of
the lessee which is the presence of additional aerials on the building.
The current aerial arrangements will be put forward for approval to sub-lease
if the proposed new lease is approved. There is no identified need for this
area of reserve land to be used for any other purpose in the public
interest.
3.13 The
new lease does not affect the lower terminal building which is on private land
at the end of Bridle Path Road and is owned by The Christchurch Gondola
Limited.
3.14 The
new lease does not affect the aerial gondola towers on Scotts Valley Reserve
which will be confirmed under a separate lease agreement that does not require
public consultation. The Christchurch Gondola Limited have carried out
rockfall protection works on Scotts Valley Reserve for the safety of the
gondola towers and this is protected by easements.
4. Impact on Mana Whenua Ngā Whai
Take Mana Whenua
4.1 As
the decision relates to an existing building occupation, it does not involve a
significant decision in relation to ancestral land or a body of water or other
elements of intrinsic value. Therefore this decision is not considered to
specifically impact on mana whenua, their culture and traditions.
4.2 Mahaanui
Kurataiao Ltd were provided with information prior to the public consultation
opening date, and sought confirmation that the lease renewal was with the Council
with The Christchurch Gondola Limited being the lessee. They subsequently
advised that no further consultation with mana whenua would be required at that
time.
4.3 Te Hapū o Ngāti Wheke, as mana whenua, are currently
collaborating with The Christchurch Gondola Ltd on the redevelopment of the
museum experience within the top terminal building.
5. Community Views and Preferences Ngā
mariu ā-Hāpori
Public
Consultation Te Tukanga
Kōrerorero
5.1 In
accordance with section 49 of the Conservation Act 1987, the proposed new lease
was advertised in the public notices of four regional newspapers (Christchurch
Press, Auckland Herald, Wellington Dominion Post, and Otago Daily Times) on
Saturday 19th February 2022. The period of time for the making of
objections or submissions was the required 40 working days with a closing date
of 27 April 2022.
5.2 Consultation
was open on the Council Have Your Say website from 21 February 2022 to 27 April
2022. The information was sent to approximately 30 stakeholder groups and
individuals and three adjacent property owners. Signage advertised the
consultation at the start of the Bridle Path near the lower gondola terminal,
and in three key locations including track access and the Summit Road at the
top. Posters were put up inside both terminal buildings.
5.3 Of
sixteen submissions received, eleven indicated support for the proposed new
lease, while five do not support this. Fourteen provided additional comments in
support of their submission. Four indicated they wish to speak to a Hearing
Panel, two in support and two in opposition.
5.4 Two
submitters gave Auckland addresses (one indicating they are a property owner),
two didn’t provide an address, and the rest are from the Christchurch
area. The Port Hills Foundation Charitable Trust was the only submitter
organisation.
Summary of
Submissions Ngā
Tāpaetanga
5.5 Several
of those supporting the new lease highlighted the gondola’s role as a key
Christchurch attraction, and three others commented in appreciation of the
annual passes and local value in exercise options from the top terminal down.
Another requested associated mountain bike track development.
5.6 There
were a number of comments about the use of the facility from submitters both in
support and in opposition to the new lease, four highlighting its current
under-use with suggestions for a range of additional activities to attract more
custom and provide better value for money. Three
suggested cheaper rates for locals.
5.7 Another
two consider the terminal and surrounding area should be available for other
community and educational activities, one also highlighting environmental
outcomes and community partnership opportunities.
5.8 There
were two opposing submitter requests for themselves or others to use the
terminal facility and surrounding area for a range of community activities and
wider use, including a request from the Port Hills Foundation Charitable Trust
to occupy the site.
5.9 Two
commented with strong concerns that the museum display is out of scope and
inappropriate, believing that it is not inclusive and does not recognise
tangata whenua.
5.10 Other
comments and suggestions from those in opposition to the proposal include an
assertion that a 30 year lease period is too long. Another provided conditional
support while asking that no precedent should be set for further development on
Crown Land.
5.11 Two
others indicating opposition think dogs should be allowed on the gondola to use
the tracks, while another two would like to see mountain bikes taken up as a
condition of the lease.
5.12 Several
submitters gave a range of suggestions for improvements to access and
facilities such as the café and restaurant with a view, longer hours,
children’s and social activities. One submitter opposing the new lease
identified the use of plastic cutlery as demonstrating no concern for reducing
plastic waste in Christchurch.
5.13 The following key points were made by the
five submitters in opposition to the proposed new ground lease:
· The new lease should be available to other community groups.
· There should be an opportunity for new people to compete with the
current operators.
· The proposed 30 year lease term is too long.
· Single use plastic cutlery not showing concern for reducing plastic
waste.
· The gondola and use of the top building has a lot of room for
improvements – new operators with new ideas, lower prices, transporting
dogs and bikes, additional facilities, services and hours.
· The museum experience is Eurocentric.
· No real changes to the experience, and the company should be
encouraged to keep up with new knowledge and consult with local stakeholders on
their proposals.
5.14 Many of the suggestions and concerns raised in the feedback were
considered by staff to relate to the operation of the gondola experience,
rather than directly to the proposed granting of a new ground lease for the
gondola top terminal building. However, where possible, staff have
responded to comments, or sought further advice, as shown in the table under
paragraph 4.18.
Staff responses
to submission points raised
5.15 Staff
have provided the following advice and comments in response to points raised in
submissions on the proposed new ground lease. Where an issue was considered to
relate to the operation of the gondola experience itself, a statement has been
sought from The Christchurch Gondola Limited.
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Issues raised/
No. of submitters
in ( )
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Staff responses
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Issues in relation to the proposed new
ground lease
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New lease should be open to other
community groups (1)
or another operator (1)
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The proposed new lease is a ground lease
for the occupation of the land by the top terminal building only.
The building is in private ownership
(constructed, maintained and operated), and is a private commercial business,
therefore –
· The building is not subject to tender by Council for a new lease
or operator.
· There is no obligation for community use.
The reserve is classified as Scenic
Reserve under the Reserves Act 1977 – a community organisation such as
mentioned would not be consistent with the purpose of the reserve
classification and therefore not a legitimate lessee.
It should be noted that the building is
situated above the Summit Road and is only accessible by aerial gondola from
the base terminal building (both also owned by the current lessee), or by
walking or biking. There is no public vehicle access or car-parking on site.
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Discount for locals in return for using
ratepayers land (1)
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The land is not ratepayer/Council land
– it is owned by the Crown, and only administered and managed by
Council on behalf of the Department of Conservation.
Ground rental is charged at full
commercial rates.
(For information on pricing and discounts
refer further down the table in row 8.)
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Lease term of 30 years is too long (1)
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The right of renewal in the existing
lease would have provided another 30 year length of tenure, as was expected
by the lessee prior to the High Court decision and DOC directive.
The Reserves Act 1977 would provide for a
33 year lease term, however Council has opted to offer the same 30 year
period as the right of renewal would have provided.
The 30 year period of the new lease
recognises the substantial capital expenditure required in the construction
of the facility.
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The new lease should have an enduring condition
that any further encroachment onto the reserve be agreed and written into the
lease conditions (1)
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This requirement is already in place as
it is a standard condition in leases on Council owned or managed reserves
that any new structures, alterations or improvements require Council
approval. This is achieved through a formal report and resolution by elected
members. Any extension to the lease area for new developments would similarly
require a variation to the existing lease to be undertaken including a
statutory public consultation and elected member approval process.
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Extension of the gondola cableway to
Lyttleton (1)
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This is outside the scope of the current
ground lease, but will be forwarded to the applicant for their consideration.
Note for information – land to the
south side of Mt Cavendish Reserve and into Lyttelton is partly owned by DOC
and partly in private ownership.
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Issues identified with the operation
of The Christchurch Gondola Ltd and the experience provided (considered
by staff to be outside of the scope of the proposed new ground lease)
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Opportunities to enhance social/community
and environmental outcomes;
Promote sustainability and plastic waste
minimisation
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Community partnerships may be encouraged
but must be consistent with the requirements for a Scenic Reserve under the
Reserves Act 1977 and the lease conditions.
Current Council lease documents now
contain clauses re waste minimisation and sustainability, as will the new
lease if approved.
The Christchurch Gondola Ltd have
provided the following information on environmental sustainability
initiatives:
· “We have recently worked with a range of groups including
the Duke of Edinburgh’s Hillary Award, Te Tapuwae o Rakau Trust and
Rāpaki iwi to collaboratively establish a memorial grove of 100 native
trees on land at the Gondola’s base station.
· An addition to this planting is planned for 2022 with a further 60
native trees to be added to this area.
· We have also worked with the Tūī Corridor project with
plans to plant provided native trees in 2022 to re-establish native
tūī habitat and encourage these native birds to return to
Christchurch city.
Public Transport:
· A bus stop is in place outside our Gondola base station allowing
easy use of public transport for guests to visit our premises.
· Initial discussions have been held with the Christchurch City
Council in setting up a storage area near our entrance for bicycle commuters:
as part of this, park rangers would look at locking the Gondola gates in the
evening to allow buses to arrive outside of Gondola closing times.
· An outdoor bike
rack is currently provided for guests cycling to the Gondola.”
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Bikes should be carried by the gondola/
the lease should be conditional on bikes being carried (2)
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The Christchurch Gondola Ltd has provided
the following information:
“We do not have external
mounting options for bikes on the cabins, and we do not transport bikes
inside the cabins due to the limited space.
There is no maintained track from the
Summit (Reserve Land) to the Summit Road.”
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Dogs should be allowed to travel on the
gondola (2)
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The Christchurch Gondola Ltd has provided
the following information:
“The Christchurch Gondola is
pleased to allow the following certified assistance dogs access to our
attraction, with proof of current Identification certification from one of
the following organisations:
· Assistance Dogs NZ
· Guide Dogs NZ
· Hearing Dogs NZ
· Mobility Assistance Dogs Trust
· NZ Epilepsy Assist Dogs
· Perfect Partners Assistance Dogs
All assistance dogs must visit wearing
harness or jacket with one of the above organisations logo's. No dogs will be
permitted if they do not have the required evidence of certification from the
above mentioned groups.
We do not permit other dogs to the
site for hygiene purposes in the complex, café and balcony.”
Staff note that the Council’s Dog
Control Policy specifies ‘leashed’ in Mount Cavendish and Scotts
Valley Reserves.
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The pricing is too high and/or pricing
should be reduced for locals and/or to encourage greater use
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The Christchurch Gondola Ltd have
provided the following information re pricing:
· “We engage with local schools including Heathcote,
Heathcote Valley and Lyttelton to support them with vouchers and tickets for
their fundraising purposes, with plans in place to approach other primary
schools within the vicinity. Heathcote Valley School has also been offered
our venue space free of charge for use on teacher-only days for activities
offsite.
· We also offer a reduced-rate Annual Pass allowing unlimited entry
to the Gondola as well as the Christchurch Tram to make entry to these
attractions more accessible for local members of our community. These passes
are especially popular with families, and validity extensions have been
provided after each lockdown to ensure that passholders are able to receive
12 months of uninterrupted access to these activities.
· We provide tickets and discount vouchers to various charities,
schools and community groups throughout the year to support their
fundraising.
· We offer discounts, in some cases up to 50%, for customers with
disabilities and their carers to enter the Christchurch Gondola: these
include discounted Annual Passes and associated carer passes.”
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A café or restaurant is essential;
More activities, events and longer
hours
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There is a visitor licensed café
– Red Rock Café – with current opening hours 10am -4pm 7
days per week.
The company actively markets the
venue’s other restaurant and functions spaces for private business,
conference and social events and promotions, including night-time use.
It is the view of staff that current
services and hours may be based on hospitality and tourism demand, and
commercial viability, in the present Covid-19 pandemic, and that these may be
expected to change over time as the situation evolves.
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The museum [Time Tunnel]
experience presents a Eurocentric story;
Lessee should be encouraged to keep up
with new knowledge and consult with stakeholders (locals and iwi) on their
proposals
(2)
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Statement from Christchurch
Attractions CEO Sue Sullivan.
“Christchurch Attractions
and Te Hapū o Ngāti Wheke are working together on the refreshment
of the Time Tunnel, which will be known as the Christchurch Discovery Ride
once the upgrade opens later this year.
We acknowledge the current 17-year-old
attraction needs to be updated. We believe the refreshed Christchurch
Discovery Ride will be an enjoyable experience that celebrates Te Ao
Māori and our multicultural city.
The updated attraction will celebrate
the history of Aotearoa, starting with the formation of Horomaka (Banks
Peninsula) from volcanic activity. Our visitors will travel through native
forests teeming with manu (birds), before witnessing the migration of
Māori, and later the arrival of Europeans. Part of the ride includes
sharing the kōrero (story) of Te Hapū
o Ngāti Wheke as mana whenua. The
interactive tour will also highlight the ongoing impacts the Christchurch
Earthquakes have had on the city 12 years on.
Work first started on the upgrade in
early 2019, but the project was temporarily put on hold when COVID-19
disrupted the tourism industry. A new script has since been written and
narration featuring Pākehā and Māori was recorded last year.
New technology will modernise the carts and trigger narration as visitors
explore the city during the ride. Due to supply challenges, some of this
technology won’t arrive and be installed until the second half of the
year.
This is the first of many
collaborations between Christchurch Attractions and Te Hapū o Ngāti Wheke, as we
work together to ensure visitors to the Christchurch Gondola and other
activities gain a deeper understanding of Te Ao Māori and the history of
our city. We’re excited to share the refreshed attraction with visitors
when it opens before Christmas.”
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Promoting additional facilities external
to the terminal building and ground lease – mountain bike tracks,
playground (1), barbeques (1)
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The gondola terminal only has a lease for
the footprint of the building on Mount Cavendish Reserve (and for the gondola
towers on Scotts Valley Reserve) therefore development of further mountain
bike tracks, or a playground, or barbeque facilities, on the reserve land is
outside of their mandate at this time.
There is a network of mountain bike
tracks along the Summit Road and in some adjoining reserves. Requests for
more mountain bike tracks on Council reserve will be forwarded to the
Regional Parks Team for consideration. It should be noted that the large
Scotts Valley Reserve below the Summit Road and the gondola cableway has
never had any Council built or managed mountain bike tracks, and has
rock-fall issues.
Staff consider that Council is unlikely
to fund a playground or barbeque facilities under its capital programme in
the Long Term Plan (LTP) solely for the use of a commercial activity on site.
It is the view of staff that these facilities would not otherwise be merited
in this location.
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6. Details Te Whakamahuki
Decision
Making Authority Te Mana Whakatau
6.1 The
Delegations Register (21 December 2021) states the following powers:
Part D – Sub-Part 4 – Council
Hearings Panels – s54, 56, 58A, 73, and 74 Reserves Act 1977 –
“To hear and determine submissions and objections, and to make
recommendations in relation to the granting of leases or licences of
reserves.”
6.1.1 Part D
– Sub-Part 1 – Community Boards –
s56 – “To grant leases and
licences of scenic reserves in accordance with this section.”
s59A – “To grant concessions in
respect of any reserve vested in the Crown that is controlled or managed by the
council.”
6.1.2 Part D
– Sub-Part 1 –Community Boards – provides for the Council to
make decisions if the issue has implications beyond the boundaries of a
Community Board (i.e. metropolitan), or the nature of the activity is such that
decision-making on a district wide basis will better promote the interests of
all communities. Mount Cavendish Reserve is considered to be a metropolitan
asset.
Legal Implications Ngā Hīraunga ā-Ture
6.2 Legal
advice has been provided by the Council’s Legal and Democratic Services
team in relation to the relationship between the Conservation Act 1987, the
Reserves Act 1977, and the Register of Delegations, with regard to the correct
process to be followed for the proposed new lease.
6.3 Legal
advice has also confirmed that the reserve is considered to be a metropolitan
asset.
6.4 As
the ground lease is for an existing building occupation with no proposed
changes, no other legal implications, including building or resource consent
requirements, have been identified.
Risks Ngā
Tūraru
6.5 There
are minimal risks to the Council, if any, as the lessee is long established on
this site.
6.6 The
proposed lease is compliant with the Reserves Act 1977, and the consultation
process has complied with the Reserves Act 1977, the Conservation Act 1987, and
the Local Government Act 2002.
6.7 There
is a very significant risk to The Christchurch Gondola Company Limited if the
proposed new lease is declined, as under the terms of the current lease, the
lessee would be required to vacate Mount Cavendish Reserve, and:
6.7.1 The
gondola experience would not be able to operate, and the aerial cableway and
lower terminal building would be rendered inoperative.
6.7.2 The
Council may require the lessee to remove its improvements at their own cost and
with no compensation payable.
6.7.3 The
lessee may otherwise have to forfeit its improvements to the Council with no
compensation payable.
Next Steps Ngā
Mahinga ā-muri
6.8 The
Reserve Hearing Panel will present its recommendations to the Council as to
whether or not the new lease should be approved.
6.9 If
the Council approves the new lease, the Property Consultancy Manager will
conclude the terms of lease with The Christchurch Gondola Limited.
Attachments Ngā Tāpirihanga
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No.
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Title
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Page
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a ⇩
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Attachment A - RPS4324-01- The
Christchurch Gondola Limited - Lease Plan - Mount Cavendish Reserve
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16
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Confirmation of Statutory
Compliance / Te
Whakatūturutanga ā-Ture
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Compliance with Statutory Decision-making
Requirements (ss 76 - 81 Local Government Act 2002).
(a) This report contains:
(i) sufficient information about all reasonably practicable
options identified and assessed in terms of their advantages and
disadvantages; and
(ii) adequate consideration of the views and preferences of
affected and interested persons bearing in mind any proposed or previous
community engagement.
(b) The information reflects the level of significance of the
matters covered by the report, as determined in accordance with the Council's
significance and engagement policy.
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Signatories / Ngā Kaiwaitohu
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Author
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Joanne Walton
- Policy Advisor
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Approved By
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Kelly Hansen -
Manager Parks Planning & Asset Management
Kay Holder -
Manager Regional Parks
Andrew
Rutledge - Head of Parks
Mary
Richardson - General Manager Citizens & Community
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