(1) Subject to the directions of the joint committee as hereinafter provided, the Whangarei Borough Council may, with the approval of the Director of Civil Aviation and subject to the terms and conditions hereinafter mentioned, and upon such additional terms and conditions not inconsistent with the provisions of this Act as it deems fit, grant leases of any land the property of the said Council, being part of the airport, upon terms permitting the lessee to erect thereon any buildings for the housing, repair, and construction of aircraft, or for accommodation houses, hotels, general stores, petrol stations, or any other buildings, equipment, or appurtenances necessary or desirable in the opinion of the said Council for the purposes of the airport.
(2) Any such lease may be for such term and may contain such rights of renewal as the said Council, with the approval of the Director of Civil Aviation, may think fit.
(3) No building shall be erected by the lessee except in accordance with plans and specifications approved by the Whangarei Borough Council and complying with the provisions of any bylaws of the said Council applying thereto.
(4) If at any time during the term of any such lease the land demised thereby or any part thereof is required by the said Council for the purposes of the airport, the said Council may terminate that lease as to the whole of the demised land, or as to so much thereof as is required as aforesaid, without liability for the payment of compensation (unless the same is expressly authorised as hereinafter mentioned by the provisions of the lease), or liability to any action, or claim for damages, in respect of the termination.
(5) Any such lease may contain a provision that, upon the termination thereof as to the whole of the demised land or as to so much thereof as is required as aforesaid, the said Council shall pay to the lessee on behalf of the parties to the subsidiary deed compensation for the then value of the buildings then upon the demised land, or the part thereof resumed, as the case may be, such value to be determined at the time of the termination of the lease; and if not mutually agreed upon the value shall be determined by 2 arbitrators and their umpire pursuant to the provisions of the Arbitration Act 1908, and this section shall be deemed to be a submission within the meaning of that Act:
provided that no such provision as aforesaid shall be contained in any such lease, or if contained therein shall have any effect, unless a further provision be inserted therein fixing the maximum value of any buildings to be erected by the lessee upon the demised land, and under no circumstances whatsoever shall the compensation payable to the lessee under the lease exceed the maximum value so fixed.
(6) If at any time during the term of any such lease the said Council, having first obtained the approval of the joint committee, is of the opinion that any building, erection, tree, or thing on any part of the demised land restricts or may restrict, or in any way interfere with, the manoeuvring of aircraft on or over the airport, or in any way whatsoever interferes with the full and efficient use of the airport, the said Council may require the lessee to remove the building, erection, tree, or thing without the payment of compensation or liability to any action or claim for damages in respect thereof, except as provided in subsection (7). In any such event the said Council shall give written notice to the lessee requiring him, within a period stated in the notice, to remove the building, erection, tree, or thing; and if the lessee fails, neglects, or refuses to comply with the provisions of any such notice within the period therein mentioned the said Council may effect such removal, and the lessee shall, upon demand by the said Council, pay to it the expenses incurred in and about the removal, or at its option the said Council may terminate the lease and all the rights or privileges of the lessee thereunder.
(7) If under subsection (6) the said Council requires or effects the removal of any building or erection erected by the lessee under and in accordance with provisions of the lease, the said Council shall pay to the lessee on behalf of the parties to the subsidiary deed reasonable compensation therefor, to be determined by reference to the lessee's interest therein as at the time of the removal; and if not mutually agreed upon the compensation shall be determined by 2 arbitrators and their umpire pursuant to the provisions of the Arbitration Act 1908, and this section shall be deemed to be a submission within the meaning of that Act.
(8) The provisions of the Land Act 1948, the Public Works Act 1928, the Municipal Corporations Act 1954, the Counties Act 1956, or of any other Act relating to the subdivision of land for sale or lease or other disposition, or to the construction of roads, shall not apply to the subdivision of any land being part of the airport for all or any of the purposes set out in subsection (1), or to the laying out on the airport of access roads to the land so subdivided:
provided that nothing in this subsection shall affect in any way the operation of the provisions of section 167 of the Land Transfer Act 1952.