Westhaven Marina Opex Ripoff

[Pink Caddy 0]

If you have bought a berth at Westhaven, you should consider carefully before paying this year's opex account that has just arrived.

 

In the covering letter the Westhaven Existing Marina Trust claims to have held opex increases to 1.7% - and that appears to be true, until you notice that last year's account included an additional item: "Pier renewals", which is not included this year. I have asked if this is hidden in the Annual Operating Expense category, and will post again when I receive a reply. If not, my account has actually increased by 4.2%. Make up your own mind whether the stated 1.7% increase is "marketing" or blatent dishonesty.

 

I did not pay the Pier renewals fee last year, and have not received any communication threatening to evict me from the marina, which can be done under clause 17.1 (a) of the Licence. This confirms that Westhaven acknowledges that this charge is ultra vires and not enforcable. This year, to show good faith, I have paid 1.7% more than I paid last year, per their letter, pending receipt from them of a valid explanation accompanied by last year's actual accounts and this year's budget used to strike the charges.

 

I am further concerned with the paragraph of the letter indicating that Westhaven proposes to charge interest to berth licensees to cover the replacement costs of Piers G-S. Licensees have already paid for new piers when they paid $50,000 - $250,000 for their right to occupy their berth until 29 September 2026. This amount is far in excess of the costs building new berths at that time. It was paid only because of the protection offered by clause 5.2 of the Licence, limiting refurbishment charges to no more than 10% of the annual operating expense. Clause 4.6 (i) specifically excludes interest on refurbishment costs by listing that only repairing, maintaining and operating costs interest can be charged.

 

The refurbishment clause 5 makes plain that Major Refurbishment Expense is the owner's responsibility. Auckland City Council would have conducted due diligence before purchasing and been aware of their obligations under the licences and the state of the piers and their need to budget for refurbishment.

 

Please understand that ACC have said that pier replacement will cost $24 million. If this is spread between the 1250 berths in the existing marina, this will cost each berth holder $19,000 average, or more likely $10,000 for an 8m berth to $50,000 for a 20m berth. If we pay interest on this amount, we can expect that to add about 50% to our annual charges, and more if we let ACC charge us to repay some of the capital.

 

PLEASE ENTER YOUR CONCERNS WHEN PAYING YOUR ACCOUNT. IT IS CLEAR THAT WE ARE BEING SUCKED INTO A SLIPPERY SLOPE FOR MAJOR INCREASES IN ANNUAL EXPENSE. DAILY RENTAL RATES WILL FOLLOW CLOSELY BEHIND.

 

If you bought or rent a berth at Westhaven, you should support Westhaven Marina Users Assn (WMUA) with $30 sub, and have attended their AGM where you would have found out the work they are doing to save you hundreds of dollars annually in increased charges. They need support to have the strength to battle these ripoffs. http://www.westhavenmarinausers.org.nz

[Murky 1]

Hmmm, interesting. Similar issues emerging - albeit in a more up-front manner - in this neck of the woods. Sounds like a different ownership structure but the same principle i.e everyone looking at everyone else when it comes to bearing the cost of pier replacements.

 

Maybe Tutukaka could purchase the piers that come out of Westhaven!