Remarkables Park (RPL) counsel David Neutze told a Land Valuation Tribunal hearing in the resort yesterday the Queenstown Airport Corporation (QAC) had paid $18.34m for the land to date, but both parties agreed that sum was "inadequate".
Mr Neutze said there were "significant differences" between them over the 15.5ha’s value, but RPL’s position was the airport’s valuation was flawed.
It considered its valuer’s evidence should hold sway, with the main areas of dispute being "valuation methodologies", the land’s value growth potential in 2019, and whether its value should account for its hypothetical potential for commercial or industrial development at the time.
Of the $82m RPL is claiming, $8.6m is for the loss of reserves credits it could have earned if the land had been vested as a reserve.
QAC values the land at between $26m and $28.7m.
The airport company acquired the land, commonly known as Lot 6, under the Public Works Act in 2019 after 11 years of wrangling in the courts.
It needs the land, which sits on its southern side, to expand its facilities as passenger numbers continue to grow.
The airport’s master plan shows the land being used for emergency services, aircraft maintenance, as well as precincts for fixed wing operators, corporate jets, and future electric aircraft and sustainable fuel supply.
The land was originally owned by QAC, but was the subject of a land swap agreement with RPL in 1997 for land to the north.
RPL, the developer behind much of Frankton's expansion, has long considered the compulsory acquisition to be unfair, arguing that by entering contractual agreements to exchange the land, the airport company created a legitimate expectation it would not seek to use it in the future.
The hearing continues in Queenstown this week before moving to Christchurch for a further two weeks.
