SUPPLEMENTARY REPORT

BY THE CHAIRMAN OF THE

ENVIRONMENTAL COMMITTEE

26. KAIAPOI WOOLLEN MILLS BUILDING:

30 MANCHESTER STREET

APPLICATION FOR HERITAGE ORDER

The purpose of this report is to update the Council on events relating to the Kaiapoi Woollen Mills building since the Environmental Committee meeting on 26 February 1996. Late in the afternoon of 26 February 1996, the Council was served with a notice of proceedings and statement of claim from G W and G J Chappell as trustees of the Cambellero Trust, which has been filed in the High Court here in Christchurch. Essentially the relief being sought by the Cambellero Trust is as follows: 1. A declaration that the Council is estopped from notifying a requirement for a heritage order or taking any steps in pursuance of it; 2. A mandatory injunction requiring the Council to withdraw its requirement for a heritage order; 3. An inquiry into equitable damages suffered by the plaintiffs as a result of the defendant's actions; 4. Costs. The Cambellero Trust, as plaintiffs are basing their claim for remedy on the following courses of action: 1. The Council has breached the provisions of the Fair Trading Act in that it has engaged in trade that is misleading or deceptive or likely to mislead or deceive the plaintiffs into believing that they were entitled to demolish the building; 2. The Council has made a false or misleading misrepresentation in connection with the sale of an interest in land concerning the use to which the land was capable of being put or may be put, that is, the ability to demolish the building on the property and re-build another building on it; 3. The Council has breached the principles of natural justice as follows: (a) in holding the meeting (the Special Meeting of the full Council) without giving any notice of it to the plaintiffs; (b) the passing of the resolution without hearing from or giving the opportunity of being heard to the plaintiffs in order that they could make submissions; (c) in defeating the legitimate expectations of the plaintiffs which expectations were created by the actions of the defendant set out in the statement of claim (issue of the building permit, the certificate of compliance, the withdrawal of caveat etc.); (d) failing or giving the appearance of having failed to give any consideration to the matters set out in the statement of claim when passing the special resolution. The matters set out in the statement of claim relate to the history of correspondence between the plaintiff and the Council relating to the issue of the certificate of compliance, the building permit, the withdrawal of caveat, and the arrangements for demolition of the building. Chairman's

Recommendation: That the information be received.

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