A group of Dunedin businessmen sought to have the committee replaced by an independent commissioner for consideration of hardware giant Bunnings' proposal to build a warehouse in South Dunedin.
At the opening of proceedings, legal counsel for opposer Duvlin Properties, barrister Dr Royden Somerville, QC, of Dunedin, opposed the hearing, claiming the council had a "pecuniary interest", having sold the leasehold to the 2.3ha of land in Strathallan St last December, for a sum which has not been disclosed.
"It's a matter of risk management, as it [claim of pecuniary interest] may come up later," Dr Somerville told the committee.
The hearing committee, chaired by Cr Colin Weatherall with Crs Andrew Noone and Richard Walls, adjourned briefly to discuss the request it step down, but on return Cr Weatherall said they would not step aside in favour of an independent commissioner.
The committee had no knowledge of the sale to Bunnings and the hearing committee would proceed, he said.
Opposing the development is Duvlin Properties, whose directors and equal shareholders are Dunedin businessmen Alistair Broad, property developer Tony Clear and Greg Paterson, the latter a one-third shareholder as sole director of Europe Holdings Ltd.
During evidence given on behalf of Bunnings yesterday, resource management planner Gary Rae said he had "unveiled" that Mitchell Partnership had applied for a resource consent proposal for the Mitre 10 Mega development in South Dunedin - a business owned and operated by Dunedin businessman Martin Dippie.
Outside the hearing, Dr Somerville said he and planner Don Anderson were acting for Duvlin Properties and not Mitchell Partnership, despite Mitchell being the formal contact given for Duvlin Properties as an opposer.
Bunnings is proposing a 9m-high, 12,000sq m warehouse on the 22,900sq m site, painted dark green with a white roof, and with parking for 265 vehicles.
The construction cost was $11 million with a total stocked budget of $27 million.
The warehouse was expected to employ more than 100 people.
Council planners have recommended to the hearing committee the application be accepted, as any adverse effects were minor and covered by conditions.
Dr Somerville contended Bunnings should apply for a zoning change from industrial to retail under the council's district plan changes, as opposed to a non-complying resource consent activity, as the application was not a "true exception", would set a precedent and draw activity away from central city retailers.
He argued the Bunnings site represented a loss of industrial land, posed a threat to existing large-scale zone retailing, and would compromise the integrity of the council's district plan.
Bunnings' legal counsel, Auckland-based Simpson Grierson partner Bill Loutit, countered creating a precedent was not an issue.
Planner Mr Rae said, "The granting of consent for Mitre 10 Mega and other similar activities in this zone illustrates that precedent has not been a significant issue for the council in the context of this specific type of retailing."
Cr Weatherall adjourned the hearing for new roading evidence to be considered by the council's transportation and planning division and a site visit.
He said, after the hearing, a decision was likely to be released within three weeks.
