Tunnel Collapse Concerns: Richlisters vs. City Rail Link in Land Valuation Tribunal

A company owned by Auckland’s wealthy Friedlander family is taking action on compensation offered for commitments on properties needed for the $ 4.4 billion City Rail Link.

The specter of tunnel collapses, fires and disasters in
New Zealand and the Overseas Tunnels were raised in this action.

The Friedlanders ‘Samson Corporation and Tedcastle Estates have requested a preliminary ruling from the Land Valuation Tribunal on the assessors’ evidence in their case against Auckland Council.

A more substantial hearing has yet to take place.

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Sean Sweeney, managing director of City Rail Link, told the Herald today that the ruling is on a pre-hearing preliminary issue regarding potential witnesses and relates to underground land for the project.

“CRL says $ 39,000 in compensation has already been paid and that Samson Corporation was now exercising an option under an agreement to seek additional compensation. CRL does not believe that the decision on this preliminary issue will have a significant impact on the future hearing. The court has yet to set a date for the hearing, ”Sweeney said.

The claim would have no impact on the project schedule or the overall project budget, Sweeney pointed out.

The dispute in court was the amount of money offered by the council to put pledges on the company’s properties on Symonds St to allow the tunnels to be legally dug under the Eden Terrace stores.

The council is buying land for the project which includes tunneling under the area’s properties to more than 30m, the court ruling said this month.

In addition to the tunnel purchases, the council is asking to make commitments on the properties of its tunnel infrastructure.

He wants to acquire a stake in the Samson and Tedcastle properties, but the two parties fail to agree on compensation.

The board has so far paid the two companies $ 39,000, but those companies want a lot more and are looking for $ 215,000 for the adverse effects on their properties, according to this month’s ruling.

The imposition of such clauses on properties affects future redevelopment opportunities such as height and the ability to dig under properties.

The addresses were not disclosed in the ruling last Monday.

But the court cited a discussion before it about the adverse effects on properties when tunnels were created under them.

“There has been some experience in New Zealand with the collapse of underground tunnels, particularly around Waihi. The impact this may have on the psyche of an Auckland buyer is unknown,” the ruling says. .

It would be difficult to demonstrate comparability between Waihi and Auckland.

“Nonetheless, the prospect of comparability between Seattle, Melbourne and other places where significant effects have occurred may be different,” the ruling said, citing Chamonix which was subjected to hell in a tunnel.

An earlier ruling in the same case, released in January, indicated that the properties involved were at 195 and 197-199 Symonds St.

Another owner told the Herald today that City Rail Link’s properties had been mispriced and that the pending action had wider ramifications for title deeds already settled.

The Samson / Tedcastle court action could have an effect on the financial compensation awarded to other landowners affected by this infrastructure project, the owner said.

He was waiting for more court decisions to be made and to see who would win.

The court ruling in January also hinted at other parties who may have a financial interest in the action.

“The applicant [Samson and Tedcastle] is asking for a court conference in the first place to address preliminary issues, including the status of Mr. McKee, a Seattle consultant who assisted the council in its approach to assessing compensation.

“It also aims to ensure that any conference is open to third party participation, although such parties are not specified. This is apparently on the basis that many parties will also likely have claims in court in due course,” said the January decision. noted.

A comment was requested today from an officer of the Samson Company but was not provided.

The Friedlanders appeared on the NBR Richlist with a substantial fortune, owning numerous properties all over Auckland. The family’s assets have been estimated to be nearly $ 2 billion.

The family ranked second as the most powerful private business on the Herald’s list of property powers.

That said, founder Sir Michael Friedlander has been a silent but extremely powerful force in the Auckland real estate market for over 70 years, establishing Samson Corp in 1946.

Lately the company has had enormous architectural influence, creating landmarks such as Ironbank on Karangahape Rd in Auckland, highly recommended at the World Architectural Festival, Parnell’s Geyser, which won awards from the Institute of Architects, Cumulus, which also won local and D72 awards on Dominion Rd.

Son Daniel Friedlander is the Managing Director of Samson and Marco Creemers is the Project Director for Sustainability and New Developments.