'End of the line' for Hilton on waterfront

A planned five-star hotel on Wellington's waterfront is dead and buried, its backers having decided not to appeal against a court decision blocking the development.

Waterfront Investments had proposed a $45 million, 142-room Hilton hotel for the outer-T of Queens Wharf.

Though the project was welcomed by city tourism and business interests, it was opposed by groups such as Wellington Waterfront and Wellington Civic Trust.

The hotel suffered a serious setback last month when the Environment Court overturned a decision by independent commissioners appointed by Greater Wellington regional council to grant consents for the development.

In its judgment, the court said building a five-star hotel on a public wharf was inconsistent with the sustainable use of natural and physical resources.

Yesterday, Waterfront Investments' lawyer, Richard Cathie, said the company had decided it would not pursue an appeal to the High Court. "It's the end of the line."

Mr Cathie said Waterfront Investments disagreed with the Environment Court decision.

But it could appeal only on points of law.

"It decided it was not worth pursuing the risk involved in more litigation. It's very disappointing all round."

He said the court's decision showed the Wellington Waterfront Framework - the overriding document covering all waterfront development - appeared to have little legal status.

Waterfront Watch president Pauline Swann said her organisation was highly relieved at the news. "This process has gone on for too long."

Mrs Swann urged Wellington City Council to arrange a competition to give the public a chance to come up with its ideas for the outer-T.

Mayor Kerry Prendergast said she would seek advice on how the district plan could be changed to ensure the objectives of the waterfront framework could be delivered on.

Positively Wellington Tourism chief executive Tim Cossar said the decision represented a lost opportunity. "It's a disappointing end to a fairly long process."

Hilton was one of the world's most recognised hotel brands, he said. Having one in Wellington would help fill a gap in the market.

Mr Cossar hoped another site could be found by Hilton.

His group would do what it could to help. "Any party that wants to develop tourism facilities in Wellington, we'd be interested in talking to."

Hilton Hotels Australian vice-president Ashley Spencer said the end of the waterfront proposal would not mean the end of Hilton's plans to be in Wellington.

"We are confident there will be opportunities for a Hilton hotel elsewhere in Wellington and we continue to look for such opportunities."

A Dunedin Hilton was scheduled to open in 2010 and other New Zealand developments would be announced soon, Mr Spencer said.

- © Fairfax NZ News