The church had been paying a nominal rent of $1 a year to the owner of the Chancery Lane block, RFD Investments.

The sole director of the company, now in receivership and liquidation, was property developer David Henderson.

The Chancery Lane chapel was damaged but not destroyed in the Canterbury earthquakes.

RFD gave the church $193,000, as a portion of the $9m that Vero paid it as indemnity insurance for the Chancery Lane block.

In late 2012, the Crown compulsorily acquired RFD's Chancery Lane complex for just over $9m.

The church had valued its leasehold at $9.5m and wanted the Crown to pay it the difference.

Lawyers for RFD's receivers said the church's "interest was limited" to a share of indemnity insurance.

Justice Nicholas Davidson found the indemnity insurance payout to RFD reflected the Crown's notice of intention to acquire the Chancery Lane site and spelt the end of RFD's occupancy.

But, he said, the church's leasehold interest "remained in existence and is compensatable".

A court win for RFD could have blocked a church claim of up to $9 million from the Crown.

Property and development manager Keith Beal said the church wanted only to establish an inner-city chapel that was as large and well-located as the previous one.

Source

• stuff.co.nz
• Image: 4.bp.blogspot.com

This land taken by proclamation is to be used for the Convention Centre Precinct.

The Christchurch diocese says this move is not an unexpected development.

It is part of the process which will, among other matters, address compensation.

The Chancery Lane chapel, in the central city area, was destroyed in the February 2011 earthquake.

It was opened by Bishop Joyce at 100 Gloucester Street (Corner of Gloucester Street and Chancery Lane) on December 8, 1958.

Fr Tom Liddy was the first priest priest to minister in the Chapel.

The building was formerly an office block housing NAC (National Airways Corporation).

Bishop Barry Jones still has as an ideal to have a chapel in the inner city in the future redevelopment of the city.

Property may be acquired under Section 55 of the Canterbury Earthquake Recovery Act 2011.

A proclamation to take land must be approved by both the Governor-General and Minister for Canterbury Earthquake Recovery, and publicly notified and gazetted, before the land is vested in the Crown on the fourteenth day after the day on which it is gazetted.

Compensation will be based on the market value of the property at the date of the acquisition.

The owner and any other person who suffers a loss in the compulsory acquisition have the right to appear before the Earthquake Recovery Minister or his delegate to make representations on the compensation.
Source

• The Catholic Diocese of Christchurch
• cera.govt.nz
• Image: 20144.bp.blogspot.com