Community Board to seek independent legal advice on endowment land
The Cromwell Community Board has asked for further information and independent legal advice before deciding how Cromwell’s historic endowment land should be protected for the future.
At its meeting on 1 September 2026, the Board considered a report outlining options for addressing ongoing legal uncertainty around the endowment, which dates back to an 1881 Crown Grant. The land was granted to the Cromwell Borough Council “upon trust as an endowment in aid of the Borough funds” and was transferred to Central Otago District Council following the 1989 local government reorganisation.
The key question is whether the land, and income generated from it, must continue to benefit the Cromwell community or whether it is now held for the benefit of Central Otago as a whole.
The Board resolved to leave the matter on the table while further information is obtained. This includes clarifying what it wants to protect for the Cromwell community, covering the future use of the land, any proceeds from its sale, replacement assets and investment income. The Board also wants to understand the instructions provided to Wendy Aldred KC.
Cromwell Community Board Chair Anna Harrison says the Board wants to make sure it understands the implications before making a decision about an asset of significant importance to Cromwell.
“There are important questions we need answered, including exactly what we would be asking the High Court to determine and what the possible outcomes would mean for the endowment. We also need to understand what protections could be put in place while that process is underway, so we don’t make decisions prematurely.
The Board is not opposed to finding a legal pathway to resolve this uncertainty, but we weren’t prepared to decide anything of this significance without having the full picture.”
As part of its recommendation, the Board has asked that Council allow it to select and oversee independent senior legal counsel to advise on the best way to protect the endowment over the long term.
The independent counsel would consider who or what succeeds the former Cromwell Borough for the purposes of the endowment, whether Council ownership determines who may benefit from it, and what protections may remain available if the endowment is not legally required to benefit Cromwell specifically.
Council Chief Executive Peter Kelly says Council has a responsibility to ensure it is acting within the law.
“Earlier this year, the General Counsel recommended obtaining independent senior legal counsel to provide greater clarity on the advice already received.
King’s Counsel (KC) have the expertise to independently consider the legal issues involved, which is why Council sought advice from Wendy Aldred KC. All legal advice that can be released has been made available online.
There is genuine legal uncertainty that needs to be resolved, and Council needs to be confident it is meeting its legal and statutory obligations.
A High Court declaration is one option for obtaining greater certainty and we respect that the Board wants more information before deciding on its preferred approach. We will work with the Board to provide that.”
A further report will come back to the Cromwell Community Board for consideration at its meeting on 6 October. Following that meeting, a report will be presented to Council on 28 October.
More information on Cromwell Endowment Land is available HERE
