Shelly Bay development

Shelly Bay Road is now open to vehicles, pedestrians, and cyclists.

The clean-up works following the Shed 8 fire have been complex, especially with all the debris on site being considered asbestos contaminated material.

The Shed 8 site will remain closed to manage any remaining risks associated with the site.

Other Council-owned land at Shelly Bay will also remain closed to the public while reinstatement works are underway.

Following the fire that destroyed Shed 8 on June 7, a Council appointed specialist asbestos removal contractor has been undertaking the necessary health and safety measures to manage the risks for those involved in the clean-up.

This work includes the installation of 5m high shrink-wrapped scaffolding, decontamination facilities including a vehicle wash-down facility to minimise further contamination and the spread of hazardous materials within the city, and on-site water dampening for dust suppression to prevent the possible release of asbestos fibres into the air during the clean-up process.

During the clean-up operation, a section of Shelly Bay Road will remain closed to traffic and pedestrians for public health and safety until further notice.

Whilst the progress of the clean-up relies on several factors, including weather conditions, it is estimated to be completed in September.

On 7 June 2023, a building known as Shed 8, on Council-owned land at Shelly Bay, burnt down.

As the building contained a significant amount of asbestos, all the debris and remaining structural parts on this site are considered contaminated, and a careful clean-up approach is required.

The clean-up of the Shed 8 site will likely take three months, depending on several factors, including weather. Another factor is the need to keep the people doing the clean-up safe.

This means Shelly Bay Road within the 300m exclusion zone will be closed to all traffic, including pedestrians, until further notice. We appreciate your understanding and cooperation during this critical process.

We acknowledge the inconvenience this will have on road users, including those people, businesses and communities that might rely on Shelly Bay Road for access. We are working hard to minimise the effects of this clean-up.

Deconstruction will proceed in respect of two buildings located on Wellington City Council owned land at Shelly Bay to address the health and safety risks posed by both buildings.

It was always Council’s intention that the existing buildings would be retained and remediated, however, in December 2022, Council became aware of further deterioration of the structural integrity of the Shed 8 and Shipwrights buildings at Shelly Bay.

Both buildings are defined as “Dangerous” and “Earthquake Prone” pursuant to the Building Act 2015 due to a combination of weakened structural integrity and significant contamination (including asbestos). Accordingly, both buildings were closed by Council. Due to the level of asbestos in the buildings they will be deconstructed for a slower more managed demolition.

Investigations by the Developer into how the building issues can be addressed have shown that the adjoining wharf is also a hazardous structure and prevents access and repair of the Shed 8 building to which it is connected. Given the findings of these recent investigations, Council is acting to address the risk to both people and property that the buildings bring and considers prompt deconstruction of both structures is required to address this risk.

Council on 20 December 2022 acting in Councils' capacity as PCBU under the Health and Safety Work Act 2015, issued a formal notice to the Developer, requiring them to deconstruct the buildings at its cost (pursuant to the Development Agreement between Council and the Developer) to address the health and safety risks.

The deconstruction of the buildings will also facilitate the safe repair and remediation of Council’s underlying seawall and the removal of the adjacent deteriorating Wharf owned by the Port Nicholson Block Settlement Trust.

Council officers are currently negotiating the replacement of the buildings.

Risk assessment documents

• Tonkin & Taylor, Update on risk assessment to Shed 8, Shelley Bay, Wellington - 16 December 2022 (2.48MB PDF)
• Tonkin & Taylor, Update on risk assessment of Shed 8, Shelly Bay, Wellington - 27 July 2020 (550KB PDF)
• Opus Consultants, Shelly Bay Slipway Building Condition Report, 2013 (1.4MB PDF)
• Holmes Consulting Group, Shelly Bay Redevelopment - Security of the existing wharf and adjacent seawall and structures, 9 December 2022 (224KB PDF)
• New Zealand Consulting, Structural Commentary on the condition & risks of Shed 8 & Shipwrights, 9 December 2022 (645KB PDF)
• Brian Perry Civil, Shelly Bay Wharf Demolition and Seawall Renewal, Methodology & Associated Risks, 7th December 2022 (1.8MB PDF)

Wellington City Council is proceeding with the demolition of three asbestos-affected buildings on Council owned land at Shelly Bay to remove the health and safety risk to the public.

Following the publication of the asbestos report in 2021, the Council announced the closure of Council owned land at Shelly Bay on the 17 of November 2021 in order to manage health and safety risks posed by the site.

The Council has now appointed a specialist contractor to remove and remediate the risk of asbestos from these buildings on the Council’s land. Central Demolition Ltd is removing the asbestos to make the site safe prior to the demolition of the three affected buildings.

The asbestos removal and demolition will not affect access to any of the privately owned land at Shelly Bay. The public road through Shelly Bay remains open.

We announced the closure of an area of Council owned land at Shelly Bay from 6pm, 17 November 2021 under Council’s Public Places bylaw in order to manage the health and safety risks posed by the site. This includes unsafe levels of asbestos contamination in the buildings and soil on Council’s land.

Council officers met with Mau Whenua representatives on 16 November which included an offer of an alternative location on public land at Shelly Bay, as a result of the closure.

Council’s priority is to ensure people are protected from health and safety risks on public land at Shelly Bay. This includes being able to control and monitor access to certain public areas at Shelly Bay which may pose a risk to members of the public. We will also move to demolish the affected buildings as soon as possible.

The latest asbestos report (linked below) shows unsafe levels of asbestos in the soil surrounding Council’s buildings, which is likely to spread further as the buildings continue to deteriorate.

The Council closed these buildings in 2020. In recent months we have become aware that the buildings have been repeatedly accessed and interfered with. We have taken all practicable measures to ensure further access is prohibited including re-securing the buildings, putting up warning signs and reminding occupiers of the safety risks associated with the buildings. These efforts have been unsuccessful as there is evidence the buildings are still being accessed. The interference with the buildings has increased the risks associated with asbestos contamination and contributed to the Council’s decision to close the area.

The Council’s closure of its land does not affect any of the privately owned land at Shelly Bay including the Chocolate Fish café and car park.

Supporting documents:

Wellington City Council Public Notice of closure of public space in Shelly Bay (2.1MB PDF)
Asbestos in soils Shelly Bay Sampling Report (1.2MB PDF)
Follow up email from Fibresafe to Council on Asbestos in soils sampling report (147KB PDF)

On 11 November 2020 the Council voted to adopt the key commercial terms (KCTs) for the proposed sale and lease of Council-owned land at Shelly Bay, and the stakeholder engagement approach to develop options for Shelly Bay Road. See paper and minutes from the Council meeting.

Prior to the Council meeting we held a Question and Answer Drop-In Session for Councillors on Monday 9 November. This was open to the public to observe and key stakeholders were invited. On 10 November officers provided Councillors with answers to the common questions that arose, which you can read below.

Shelly Bay – Councillor question and answers (314KB PDF)

Council officers are now in the process of:

• drafting a development agreement which will be finalised over the next three-six months.
• developing an engagement approach with key stakeholders on the roading options for Shelly Bay Road. We envisage the results will be presented to the Council in 2022, after we complete engagement with stakeholders and the community on the options available.

The Council report outlining the key commercial terms (KCTs) for the proposed sale and lease of Council-owned land at Shelly Bay, along with the stakeholder engagement approaches for possible upgrades to Shelly Bay Road, has been published this website. The report will be debated by the Council on Wednesday 11 November.

Background

On 27 September 2017, the Council agreed to enter into an agreement to sell and lease land with Shelly Bay Limited as part of a planned development by The Wellington Company in partnership with Port Nicholson Block Settlement Trust (PNBST). The Council agreed (in principle) to sell (0.3h) and lease (0.6h), a total of 0.9 hectares of land.

The paper published today (5 November 2020) outlines the KCTs which officers have negotiated with the developer.  

Supporting documents:

• Council meeting agenda – 11 November 2020 (10.2MB PDF)
• Frequently asked questions – 5 November 2020 (148KB PDF)
• Presentation briefing provided to Councillors at closed workshop – 3 November 2020 (895KB PDF)
• Map of Council land under development (1.5MB PDF)
• Shelly Bay proposed development masterplan – November 2020 (2.64MB PDF)

The Council meeting to consider and vote on the key commercial terms for the proposed development of Shelly Bay, and a public engagement approach for possible upgrades to Shelly Bay Road has been confirmed for Wednesday 11 November 2020.

The Council papers will be available on this website from Friday 6 November 2020.

Council officers also sought independent legal advice on whether there may be any risk of a real or perceived conflict of interest which may disqualify Councillors from voting on the issues above. This was to provide assurance to the public and ensure the process is transparent and robust.

The legal advice - which has been provided to Councillors - shows there are no real or perceived issues which would affect their ability to vote at the meeting.

Legal advice sent to Wellington City Councillors (395KB PDF)

We have published the monitoring report on the status of the Shed 8 building and foundations at Shelly Bay.

In 2014, the Council engaged the environmental and engineering consultants, Tonkin and Taylor to assess the building and seawall annually as part of ongoing asset maintenance.

In early 2015, the Council carried out remedial work on the foundations and piles supporting the building, based on the engineering assessments. This included installing temporary steel props to support the building’s piles and replacing timber rails with plywood boards to protect the foundations from erosion due to the waves.

In the most recent memo dated 27 July 2020 (based on an inspection on 22 June 2020), Tonkin and Taylor advised the Council that their staff were not prepared to continue doing regular engineering assessments until further remedial work is completed.

Given that Council could no longer monitor the building’s safety, we contacted the three tenants in Shed 8 to explain why we needed to close the building. We have been working with the tenants on timeframes to move and help them identify possible alternative locations.

Report released:

• Monitoring report from Tonkin and Taylor to Wellington City Council Dated 22 June 2020
• Shelly Bay Complex – Asbestos Report (16.9MB PDF)
• Wellington City Council Shelly Bay Critical Risks (196KB PDF)

On Wednesday 4 August 2020, Council officers provided the Mayor and Councillors with a progress update on the proposed Shelly Bay development at a workshop.

This involved:

• a recap of the Council’s approach since September 2017
• confirming the areas of the key commercial terms that will form the basis of any commercial agreement for the sale and lease of Council land
• the shared responsibilities including costs, for the Council based on whether or not the development proceeds. (Note: these costs are outlined in the committee paper considered by Council in September 2017)
• discussion on approaches to engagement with stakeholders and the public on Shelly Bay Road between Shelly Bay and Miramar Avenue.

In line with the undertaking made by the previous Chief Executive, recommendations will be brought for consideration to Councillors in October 2020 that will include the key commercial terms and approaches to engagement on the road.

• Councillor workshop presentation – 4 August 2020 (443KB PDF)
• Frequently asked questions – August 2020 (167KB PDF)

On 31 October 2019, the Independent Commissioners’ released their decision regarding Shelly Bay. The resource consent has been granted.

Specifically the Commissioners unanimously issued three decisions:

• Decision One – Subdivision Consent – Granted subject to conditions.
• Decision Two – Land Use Consent – Granted subject to conditions.
• Decision Three – Cancellation of Amalgamation Condition – Agreed.

In doing so the Commissioners consider that the proposal is consistent with Part 2 of the Resource Management Act largely adopting the assessments provided by the applicant and the Officer’s recommendation report. They considered that the proposal has been designed (with appropriate conditions) to sufficiently mitigate adverse effects.

Regarding consent conditions, other than some refinement to improve clarity in terms of what is required of the consent holder, these are consistent with the conditions as first imposed when the initial Officer decision was made.

We will be coming back to Council with a general update on the decision, including a final decision on the sale and lease of Council land and upgrade of roading infrastructure, in due course.

Note: The decision was re-issued on 31 October 2019 with a minor correction under section 56 HASHAA and section 133A RMA. Paragraph 179 has been deleted from the original version of the decision.

• Reconsideration of Shelly Bay Development (778KB PDF)
• Legal consideration (73KB PDF)
• Appendix 1 Record of Title (373KB PDF)
• Appendix 2 Shelly Bay Masterplan (62MB PDF)
• Appendix 3 Shelly Bay Design Guide (18MB PDF)
• Appendix 4 Contamination Report (4.2MB PDF)
• Appendix 5 Traffic Assessment (8.3MB PDF)
• Appendix 6 Proffered Conditions (504KB PDF)
• Appendix 7 Noise Insulation Overlay Map (476KB PDF)
• Appendix 8 Engineering and Earthworks Plans (38.5MB PDF)
• Appendix 9 Shelly Bay Scheme Plan (3MB PDF)
• Appendix 10 Infrastructure Report (50.8MB PDF)
• Appendix 11 Planning Assessment Tables (541KB PDF)
• Appendix 12 Heritage Assessment (65.1MB PDF)
• Appendix 13 Cultural Impact Assessment (1.1MB PDF)
• Appendix 14 Landscape Visual Assessment (269KB PDF)
• Appendix 15 Urban Design Assessment (875KB PDF)
• Appendix 16 Urban Design Assessment UD Protocol (503KB PDF)
• Appendix 17 Artist Impressions (17.6MB PDF)
• Appendix 17 Video (80MB MP4)
• Appendix 18 Geotechnical Report (27.8MB PDF)
• Updated Scheme Plan Received by the panel 19.06.2019 (1.2MB PDF)

• Shelly Bay – Minute 1 (131KB PDF)
• Shelly Bay – Minute 2 (122KB PDF)
• Shelly Bay – Minute 3 (121KB PDF)
• Shelly Bay – Minute 4 (130KB PDF)
• Shelly Bay – Minute 5 (160KB PDF)
• Shelly Bay – Minute 6 (163KB PDF)
• Shelly Bay – Minute 7 (218KB PDF)
• Further memo for TWC response to Minute 3 – 6 June 2019 (214KB PDF)
• Envelope Engineering Response on engineering matters – Minute 5 Shelly Bay – 30 July 2019 (14.5MB PDF)
• Response by The Wellington Company Limited to Minute 5 – 31 July 2019 (150KB PDF)
• 17 June 2019 232 Shelly Bay Road (Officers Report) (2MB PDF)
• Supplementary Section 42A Report from WCC (331KB PDF)
• Shelly Bay Heritage Effects Assessment (3MB PDF)
• Recommended Conditions from Wellington City Council - 9 August 2019 (336KB PDF)
• Recommended Conditions from The Wellington Company Limited – 31 July 2019 – Final Draft (1.1MB PDF)
• Applicant and Council Comparison of the Recommended Conditions (129KB PDF)
• Buddle Findlay Advice to Commissioners (158KB PDF)
• Morrison Kent – Letter to Wellington City Council 29.05.19 (329KB PDF)
• Philip Milne advice to Enterprise Miramar reconsideration (206KB PDF)