Society hit with $6500 penalty

The Wakatipu Environmental Society could face bankruptcy after an Environment Court decision ruling it must pay $6500 to an Arrowtown developer, society spokeswoman Karen Swaine said.

In a decision released this week, Environment Court Judge Laurie Newhook decided that the society must pay $6434 in costs to the Gary Mullings Family Trust, owners of Arrowtown's demolished historic Emporium commercial building.

Judge Newhook said, in the circumstances, he considered "a higher than usual" award of costs was justified. He awarded the developer 80 per cent of the $8042 costs incurred after the society applied for interim enforcement orders, which the developer said delayed demolition of the historic Buckingham St commercial building.

The costs related to the five-day delay caused when the society sought to stop demolition after earlier agreeing with the plans. The "stop-go nature" of the society's actions misled the developers into thinking no proceedings would be taken and it could proceed, the judge's decision said.

Ms Swaine said yesterday that the penalty imposed by the court was "excessive" but the society would not be appealing the decision and would attempt to honour it.

"We do not have almost $6500 — we spent all our money on this case," Ms Swaine said.

Gary Mullings said the trust had spent about $200,000 on getting resource consent for the building since 2001. He was delighted with the Environment Court decision and construction had now started on a new building on the site.

Half the costs he was awarded would be donated to the Arrowtown Primary School library for acomputer system upgrade.

- © Fairfax NZ News