SML - Synlait Milk Ltd

[BlackPeter]

All along Synlait management have taken a sanguine approach to assuming this can be resolved in a reasonable amicable way and are simply hoping the other party plays fair and reasonable. What if they don't ?

I guess without having heard the other side we don't really know whether they have genuine issues and negotiating in good faith.

However - I read some months ago that they have plans for subdividing adjacent land in Pokeno to create lifestyle blocks as well as setting up a adventure tourism business.

Not sure it was this article, but seems to describe the same business plan:
https://www.stuff.co.nz/business/bet...-north-waikato

Ah yes - and here is a link referring to the housing development:

https://www.nzherald.co.nz/business/news/article.cfm

Its contested new factory at Pokeno may have got in the way of a neighbour's plans for a 1000-section housing development.

Last month's Court of Appeal judgment has thrown Synlait's plans to start processing at Pokeno imminently into confusion by upholding restrictive covenants on the land.

The court's ruling that the restrictive convenants stay noted that neighbouring land owner Karl Ye, who sought the court ruling, wants his land rezoned residential for a big subdivision.

Further inquiries by the Herald showed Ye, also known as Qing Ye, made a submission to the Waikato District Council in October to rezone his 148ha properties residential. His land is currently farmed.

The council's proposed district plan wants to rezone Ye's land rural and the land Synlait has built on to heavy industrial.

Two 200-year covenants on the Synlait land restrict its use to grazing, lifestyle farming and forestry.

Ye owns the benefits of the covenants, which have only run for 20 years.

Anyway - both plans (tourism business as well as lifestyle blocks) would be quite incompatible with an adjacent big and ugly dairy factory.

Given that the character of the land was protected by covenants the developers could well rely on the area remaining its rural character. It was Synlait which choose to infringe on these covenants and basically try to steal many million dollars from the people who planned these developments in good faith. Why should the beneficiary of the covenants now agree to a cheap settlement to make the party violating the covenants richer?

It actually might be Synlait who is acting unreasonable here ...