Agenda of Shire Services Committee - 5 March 2018€¦ · 2018-03-05 · the community benefits offered by the developer as its contribution, including the 1,500 square meter space

Business Paper

Shire Services Committee

Monday, 5 March 2018

6.30pm

Committee Rooms 203 and 204,

Level 2, Administration Building,

4-20 Eton Street, Sutherland

Shire Services Committee 5 March 2018

Page 2

ORDER OF BUSINESS

1. ACKNOWLEDGEMENT OF COUNTRY

2. APOLOGIES

3. DISCLOSURES OF INTEREST

4. CONFIRMATION OF MINUTES OF THE PREVIOUS MEETINGS

5. PRESENTATIONS

6. REPORTS FROM OFFICERS

SER013-18 Value Assessment of Developer Contribution Space at South Village,

Kirrawee

SER014-18 Proposed Acquisition of 100 Como Road Oyster Bay for Open Space

Purposes

SER015-18 Proposed Telecommunication Tower at Gymea Bay

7. QUESTIONS

8. CONSIDERATION OF BUSINESS IN CLOSED SESSION

9. CONFIDENTIAL REPORTS FROM OFFICERS


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SER013-18 VALUE ASSESSMENT OF DEVELOPER CONTRIBUTION SPACE AT

SOUTH VILLAGE, KIRRAWEE

Attachments: Appendix A,⇩ Appendix B,⇩ Appendix C,⇩ Appendix D⇩ and Appendix E (under

separate cover)

EXECUTIVE SUMMARY

Council will receive in October 2018, a 1,500m2 space within the retail precinct that is not fitted

out, as part of the developer’s contribution for the mixed residential and retail development

known as South Village, Kirrawee.

The space is without dedicated parking, zoned for mixed use and is a stratum, able to be sub-

divided, for an estimated cost of $760,000.

In June 2017 Council resolved that an options paper discussing the types of uses for the space,

with an emphasis on creating a community hub and promoting learning and social engagement

be prepared.

The recent community engagement survey undertaken in November 2017 revealed a lack of

desire towards more community halls and a preference for the sale of some halls to meet other

community needs.

Council has several options for the use of this space; commercially leasing it, using it as a

community facility, as a combined community and commercial leased facility, holding onto it and

deferring a decision until the best use if known or selling it and applying the funds towards either

the infrastructure backlog or the current community building services Council provides.

The analysis of options against community expectation and need, sound property portfolio

management, consideration of Council’s long term financial planning and the risks of each

option, finds that sub-dividing and commercially leasing the space to be the most preferred

option.

Council is able to apply rent (quantified under separate confidential cover, Appendix E) earned

towards its existing community building services and its infrastructure backlog.


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REPORT RECOMMENDATION

THAT:

1. The transfer of the 1,500 square metres lot to Council as conditioned by DA15/1134, at 566-

594 Princes Highway Kirrawee, at terms and conditions to the satisfaction of the General

Manager, be approved.

2. Upon transfer to Council, the subject land be classified as "operational" land in accordance

with Section 25 of the Local Government Act, 1993.

3. The transferred lot be sub-divided into smaller shop lots and leased to tenants whose

businesses provide sound commercial returns and encourage community connections.

4. In accordance with the Power of Attorney dated 6 July 2016 BK 4710 No. 28, the General

Manager execute any necessary documentation to give effect to this resolution.

PURPOSE

The purpose of the report is to:

Inform Council of the options available with regards to the South Village developer contributed

built community space,

Make recommendation as to the best overall value assessed option, and

Provide Council with an initial analysis of the potential realised value from the recommended

option.

BACKGROUND

Kirrawee town centre is located with good access to road and rail, employment areas and Gymea and

Sutherland town centres. Kirrawee town centre currently comprises a small shopping strip along Oak

Road, between Flora Street and President Ave. The mixed residential and retail redevelopment of the

former Brick Pit site, as South Village, will significantly change the character of Kirrawee town centre.

The Kirrawee retail centre will expand from Oak Road to include the Brick Pit and part of Flora Street.

The recent approval of a Woolworths supermarket, along with upgrades to the Flora Street public

domain will expand the ‘high street’ to the area.

The South Village development comprises 85,000 square metres retail space (including one large and

one smaller supermarket), 808 residential flats, on-site parking, 9,000 square metres of landscaped

public park with playground and a 1,500 square metre community space, as a cold shell (without fit-

out) within the retail footprint of the South Village development site (see Appendix A).


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A Voluntary Planning Agreement (VPA) between Council and South Village Pty Ltd, a partnership

between Payce Consolidated Ltd and Deicorp Pty Ltd, both property development companies, sets out

the community benefits offered by the developer as its contribution, including the 1,500 square meter

space within the retail precinct (the built space), that is the subject of this report.

The built space is located on the northern side of the central building (Building G), with glassed walls

fronting both the northern and western (the Park) elevations. The built space is square in shape

(approximately 45m x 35m) and subject to support columns. A significant portion of the space is

‘internalised’ being some distance from the northern and western elevations. Apartments are located

above the space, and car parking below. There are no dedicated car parking spaces within the South

Village development assigned to this space however users are able to make use of communal parking

spaces within the development.

In June 2017, Council considered the value being offered by developers to relinquish the built space

within the retail footprint in exchange for part contribution towards a new library in the public park. At

that meeting, Council resolved via SER002A-17 that:

1. The report be noted.

2. After balancing considerations Council notes there is no clear persuasive case in favour of the

relocation of the Central library to Kirrawee.

3. The offer to surrender or sell any part of the 1,500 square metre community space not be

accepted.

4. Council retains the 1,500 square metres for suitable purposes to support the local community

and surrounding suburbs.

5. Council support the entire removal of the water body and wetland to optimise the provision of

useable open space at South Village, Kirrawee.

6. In Council's current operational plan an allocation for the 1,500 square metre space fit out be

allocated for $2.1M and that this allocation be provided for in the Budget 2017/2018.

7. An options paper be prepared by the General Manager to be delivered prior to February 2018

for the use and utilisation of the community space provided to provide the most modern and

accessible community space that includes as a minimum but not limited to:

a. Becomes a community hub accessible and attractive to the full spectrum of our community;

b. Develops new spaces that promote play as a central part of childhood learning;

c. Engages teens in events that encourage deeper, long-lasting connections with our

community;

d. Allows for places where students can access study tools;

e. Creates new programs that provides and facilitates our community of all ages and

demographics to teach one another about digital media and resources.

8. The options paper also include a standalone confidential business plan for Council’s

consideration.

9. This resolution immediately be made a public resolution.


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DISCUSSION

Portfolio of ‘community facilities’ assets

Council has a number of buildings that serve to connect community, bringing people together via

shared interests, experiences and needs to add value to daily life. These include libraries, galleries

and performance venues, community halls and centres used to provide social services, as follows:

8 libraries

28 multi-use meeting halls (23 Council managed and 5 community self-managed)

13 community centres exclusively occupied and managed by third party not for profit social

services groups (of which two are leased by Council, one on commercial terms and the other

on a peppercorn arrangement)

1 art gallery and 3 performance venues

Appendix C provides detailed information on each facility. The 1,500 square meter built space has

been proposed as an additional asset to Council’s community facilities portfolio with its aims as

detailed in Council’s resolution.

ANALYSIS OF VALUE OF OPTIONS

In considering the best overall community benefit able to be derived for this additional asset in the

form of the built space within the retail precinct of South Village, Council has five overarching options:

Option 1 – To dispose of the asset, realising its value and applying this to Council services and

infrastructure backlog (Dispose)

Option 2 – To leave the space as is without committing to an end use until such time as all other

retail/commercial space has been leased to determine the best option. (Hold)

Option 3 –To rent this asset on commercial terms, with the aim of achieving community connections

and adding to quality of life and also creating an on-going income stream (Commercial lease)

Option 4 – To invest in this asset, and provide it as a dedicated cultural space on a non-profit basis,

with the aim of achieving community connections and adding to quality of life (Non-profit sector

lease)

Option 5 - A combination of commercially renting and investing in the asset as cultural space

(Commercial & Non-profit sector lease)

These options are considered in the context of recent community feedback, current and future need,

Council’s property portfolio management and return, Council’s long term financial plan and the risks of

each option.


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COMMUNITY ENGAGEMENT

Current community expectations

Council has undertaken previous surveys on community satisfaction and importance of a range of

facilities and services where the community have indicated a high satisfaction rating with its overall

portfolio of community facilities (higher satisfaction, lower importance quadrant in the table below).

Table 1 – Community satisfaction with range of Council activities shown as quadrant analysis

Micromex survey (Dec 2016)

In the same survey, the community highlighted issues such as long term planning for the Shire,

neighbourhood traffic conditions/management, provision and condition of public toilets and overall

condition of the local sealed road network as being of greater importance for which there is a lower

level of satisfaction. The survey also revealed that effective communication of Council decisions is

also of importance to the community.

The 2017 Ruby Cha Cha (RCC) community engagement survey revealed the community’s satisfaction

with community facilities, that Hazelhurst Gallery is meeting the community expectations as it is, there

is little interest for major works to the Sutherland Entertainment Centre ahead of other needs and

comfort with retaining the eight library points of services without clear support for a new central library.

This is detailed in Table 2 that follows.


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Table 2 – Community survey prioritisation of options

The RCC engagement survey provided information on the community’s preference to trade off some

options in preference for others. The survey also reflects the support for the sale of some community

halls and for some sporting clubs to be hired out.

This can be seen more clearly in a limited choice analysis of community feedback from users of

libraries, community halls and Hazelhurst Gallery, again placing greatest acceptance for the sale of

some community halls amongst a basket of ‘community’ infrastructure options.

Table 3 – Community survey of users of community facilities, across a range of community connection

improvement options


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In summary, for the five options, from known community expectation perspective:

Option 1 (Dispose) – the space has not yet been defined for any fixed purpose and is without existing

users who would be disturbed, making this option more acceptable. This option is also one the

broader community and users of community facilities most prefers.

Option 2 (Hold) – there is no barrier to taking a hold position on this built space, allowing for the

balance of the residential and commercial spaces to become occupied, and inform what the best

overall option might be.

Option 3 (Commercial lease) – There is no clear position from either community survey as to the

community’s view on the commercial leasing of the built space.

Option 4 (Non-profit lease) – There is no persuasive view in the broader community for the desire to

increase the number of traditional community halls.

Option 5 (Commercial & Non-profit lease) – As there is little appetite for a growth in community halls,

this option would be considered less preferred.

Most preferred Option – Option 1 followed by Option 2

Least preferred Option – Option 4

Current and future community service needs

Demographics and town centre development

The transition of families living in higher density housing is occurring at an unprecedented rate.

Population growth will place pressures on existing assets, and changing demographics will mean that

residents will want to use open space and community facilities in different ways. More of the activities

that have traditionally taken place in homes and back yards will occur in the public domain.

With this change in demographic profile, residents of Sutherland/Kirrawee centres are likely to have

changing needs. Demographic data shows that the new residents will tend to be younger workers and

families. In Sutherland/Kirrawee 30% of households with children currently live in flats. This is the

second highest rate behind Cronulla (38.4%). In addition, 14.3% of households with children live in

multi dwelling developments. While some of these households will be ageing residents downsizing

from the suburban edges to locations with good transportation and services, young people entering

the housing market will also swell these numbers in and around centres.

The development of South Village will substantially increase the number of flats by 808 in Kirrawee

and add approximately 1,500 more residents to the local area. In the Sutherland/Kirrawee precinct

flats are the dominant and fastest growing housing type (46%) and 68% of rental properties are flats,

the largest rental market for flats in Sutherland Shire.


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By 2036 Kirrawee’s population is likely to grow by approximately 4,300 to be 13,680 people; with most

of this growth occurring in the centre. Should all of the immediate Kirrawee centre re-develop for flats

or mixed use, in the longer term the centre alone could have 7,000 people in 2,700 dwellings. This

compares to Sutherland centre which is expected to be significantly larger with 10,300 people in 3,900

dwellings.

Over time it is expected that the two centres will take on distinct, but complementary roles. The district

level shopping centre at the South Village is likely to have a greater retail offer than Sutherland centre.

Whereas the development in Sutherland centre is likely to support local residents including

restaurants, cafes and commercial services. Residents of the two centres are likely to walk between

the two centres with Kirrawee residents taking advantage of the better rail service offered by

Sutherland and its range of services at its restaurants and cafes, while Sutherland residents can be

expected to walk to the shops in Kirrawee.

Community service needs

There are a range of services that Council either provides or enables, aimed at building connections

within a community and adding to quality of life. These come under a broad umbrella definition of

‘community facilities’ and include libraries, performing and visual arts spaces, recreation and leisure

spaces, community centres and meeting halls and early education and learning spaces. Equally,

commercial enterprises such as cafes that provide for free wifi, offer relatively economical food and

beverage, welcome pets and encourage socialisation have grown to become modern day ‘community

hubs’. The locations of Council’s community facilities, both across the Shire as well as in proximity to

Kirrawee are shown in Appendix B.

The need and appropriateness of the space at South Village for each type of service is discussed in

more detail below.

Recreation and leisure

The Kirrawee centre currently benefits from a small local park to the west, Flora Street Reserve,

embellished with seating and play equipment. Pollard Reserve, to the south, provides a more natural

setting for the endangered Sydney Turpentine Ironbark forest. The completion of South Village will

provide a 9,000square metre park with a playground will fill the gap in the eastern part of Kirrawee for

access to local open space.

Locations for organised sport playing fields at Waratah Park Sutherland, Kareela Oval or Kirrawee

Oval, or the facilities at the Sutherland Leisure Centre, Basketball Stadium and PCYC Centre are

outside of walking distances and would need to be accesses either by car or a combination of train

and walking.

Given changing demographics, residents of Kirrawee ready access to an active recreational facility

and fitness facility, that caters to a wide demographic would provide benefit to the residents as well as

help build social networks, intergenerational interaction and connections.


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The available built space is large enough to allow for an indoor active play, exercise and leisure

space, that could also offer light meals and refreshments and space for the public to sit, eat, read and

access wifi. Consideration could be given to seeking out tenants that provide a combination of

commercial / community play, exercise and recreation with food and beverage service and wifi, should

an option to commercially let the space be adopted.

Performing and visual art spaces

The available space is located mid-way between the emerging arts precinct traversing Gymea

(Hazelhurst) through to Sutherland (Entertainment Centre, Memorial School of Arts). At present

Council is considering a needs based assessment for its future investment in the Entertainment

Centre specifically and more broadly in its other existing performing arts spaces, at Engadine and also

the School of Arts at Sutherland. There are also plans being prepared to expand Hazelhurst Gallery,

subject to third party funding availability, i.e. via the State or Federal governments.

Visual arts spaces are both expensive to create and maintain requiring exacting temperature and

moisture control systems to cater for artworks, security and specialist materials in its building. None of

this is well catered for in the available space. Similarly, performing arts spaces or theatres also have

very specific configuration and design requirements and rarely suit being introduced into vacant retail

spaces.

With no clearly identified need for a further performing or visual arts space, and Council facing

significant expense in the coming few years to modernise two of its existing performing arts spaces,

activating the available built space for either visual or performing art is not considered as an option.

Libraries

Council currently has eight libraries, a number which are too small to meet the local community’s

need. The challenge for libraries, often important community hubs for students and older residents and

retirees, is the need for them to be located in proximity to existing town centres.

It costs approximately $0.77M per year to operate a library, and without the ability to increase annual

operating costs by this amount, the only way in which library services could make use of the available

space would either be by relocating a nearby, smaller branch or using the space as a satellite to the

main Sutherland library.

The option of relocating an existing nearby, smaller library, being Miranda library, was not considered

viable, as Miranda with its high density residences, has its own need for a branch library within its

town centre. Establishing a satellite site to Sutherland library and relocating services that emphasise

study, reading and research is possible. This type of use would be complimentary to a residential

development, with a park and playground.


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The available space would need to be configured to include a:

wifi lounge and exhibition spaces for people to relax, meet and connect (300m2)

quiet study areas to meet the needs of secondary and tertiary students, researchers and

lifelong learners (400m2)

Council’s local studies collection, research service space (250m2)

staff areas (50m2)

The satellite would be operated by existing Sutherland library staff and Sutherland library would

continue to hold the print collections, host the children’s and young adult areas and associated

programs and having communal study and spaces for noisier activities.

There are hurdles with this ‘make use of available space’ option, including:

the splitting Sutherland Library’s services across two sites may not be favourable to

Sutherland patrons who prefer having all services at a single site at Sutherland

Kirrawee’s distance from local schools, which are a main source of students who frequent

Sutherland for after school study

Kirrawee is one suburb removed from the main public transport bus and rail hubs, an

important feature of Sutherland for school students coming from further afield

accessibility concerns without dedicated drop off zones for patrons with mobility assistance

needs

estimated fit-out cost of $2.2M and on-going maintenance costs to facility

increased technology costs for digital exhibitions, wifi and other technology programs

Ultimately, the use of this available space as a satellite library to Sutherland is being driven by the

need to find a use for the built space available rather than as a result of implementing an evidence

based, identified solution that forms part of the longer term library services strategy.

Community centres and Meeting halls

There are no Council provided community facilities in Kirrawee at present and a number of guidelines

from other States do support the addition of a small neighbourhood centre, ranging in size between

200m2 to 600m2. This is detailed in the table below.

Table 4 – Guidelines to size of neighbourhood centre / meeting space

Guidelines Ratios Suggested gross floor area (Population

up to 10,000)

Parks & Leisure Australia (WA) 1:5,000 350m2

Victorian Government 1:4000 200-600m2

Queensland Government 1:2,000-3,000 300m2


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While having a space that connects community is acknowledged, the traditional meeting hall or

community centre, no longer sufficiently meets to needs of today’s community. Where kitchenettes

were a feature in meeting halls of the past, the modern day demand for meeting places are for on-site

food and refreshments available for purchase, air-conditioned spaces and free wifi. Most traditional

community halls now serve as cost effective spaces for local small businesses (dance schools and

martial arts classes) to operate from or as a base for grass roots, non-profit social service providers.

Local small dance schools and the like are well catered for with Council’s community halls, church

halls, school halls and the like. There is no data that identifies a shortfall in community based spaces

for hire for these small, local businesses.

Social service needs

Council currently support local non-profit social service providers in a number of ways, via grant

funding and in some instances the providing maintained customised facilities at nominal rent. There

are twelve such facilities within the community facilities portfolio that are currently used in this way,

and a thirteenth that is rented by Council and offered to a social services provider.

Social service providers are highly dependent on the grant funding. There are significant changes to

funding model underway with NDIS (national disability insurance scheme) and My Aged Care being

two major examples. Funding previously provided to social service organisations to deliver services

will now be directed to approved ‘consumers’ of these services, and these clients will then ‘acquire’

services from a range of approved social service providers.

The shift in the model and the requirements to becoming an approved government social service

provider is most likely to cause smaller organisations that deliver niche services having to amalgamate

in order to reduce administrative overheads, increase overall management expertise and become

large enough such that they have a core size that makes them viable. The funding model changes

may also see new, large, for profit entities enter the market, where in the past social services have

been predominantly delivered by the state government or the non-profit sector. This uncertainty makes

it less viable for Council to commit to fitting-out this built space to suit a social service provider.

In terms of the setting of the built space, being in a high density residential complex does not lend

itself to traditional social service organisations, that prefer a degree of privacy for their clients and

some also have very specific accessibility needs and drop off / pick up capability. The available space

does not offer either of these.

There may however be social enterprises, such as supported cafes or restaurants offering training and

development programs, creating social connections that may have an interest to both the for profit and

non-profit section, and consideration could be given to seeking tenants that are interested in using this


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space in this way and level of contribution towards on-going costs including utilities, insurances,

maintenance and strata levies, should an option to let the space to the non-profit sector be adopted.

Early education and learning

Early childhood and learning centres, formerly known as long day care centres, are now considered a

commercial offering and there has been a sharp rise in the number of centres opening in the local

government area over the last five years. This is evidenced by the number of centres in Kirrawee, with:

Council has an early childhood centre at Fauna Place, Kirrawee, located in proximity to the train

station and commuter carpark.

three established early education and learning centres in Kirrawee

two development applications received for the area

The built space could be fitted out as an early childhood learning and education centre and meet the

needs of residents in and around South Village. An Expression of Interest to the market to gauge

interest would be the best way to assess the viability of this, should an option to commercially let the

space be adopted.

In summary, for the five options, from a current and future need perspective:

Option 1 (Dispose) – There are possible ‘community connection’ opportunities that could be explored

leading to this option being less preferred.

Option 2 (Hold) – This option does not preclude gauging market interest of potential ‘community

connection’ opportunities, but rather delays this research.

Option 3 (Commercial lease) – There are commercial offerings that will encourage building ‘community

connections’ and interactions (early education and learning and recreation and leisure offerings),

making this a viable option to pursue.

Option 4 (Non-profit lease) – The location of the built space within a residential complex, without client

privacy, dedicated parking and other customisations needed for non-profit uses, couple with

uncertainties resulting from change to the funding model for the social services sector, makes this

option the least viable.

Option 5 (Commercial & Non-profit lease) – There are commercial offerings that can also integrate

non-profit elements that encourage building ‘community connections’ and interactions (early education

and learning and recreation and leisure offerings as well as for profit and non-profit social enterprises)

Most preferred Option – Option 3, followed by Option 5



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RESOURCING STRATEGY IMPLICATIONS

Council’s adopted Asset Management Strategy and Long Term Financial plan are connected. The

range and level of services provided from assets must be reflected in expenditure allocations in the

Long Term Financial Plan. If additional financial allocations are not provided when new assets are

added or upgraded it is inevitable, in the absence of service delivery efficiencies, that service levels

across the portfolio must be compromised. Compromises are not necessarily a negative action if

carried out with the support of community engagement. The difficulty is normally obtaining the

community support for this reduced level of service.

Asset Management Strategy for property portfolio

Community facilities portfolio

Council has no specifically adopted strategy for its portfolio of community facilities, which comprise

community halls, libraries, an art gallery and performing arts venues and some facilities exclusively

occupied by non-profit third parties providing social support services.

Council has built and/or acquired fifty two facilities in this portfolio, comprising of eight libraries, twenty

eight multi-use meeting halls (of which five are self-managed), eleven community facilities with anchor

3rd

party non-profit social services providers, one art gallery and three performance venues. In

addition, Council commercially leases a shop front in Engadine for the use of a non-profit social

services provider as well as a community centre in Illawong on a peppercorn, long term agreement.

The details of each facility, address, land classification, zoning and predominant users (for halls and

community facilities) are provided in Appendix C.

Most of Council’s facilities are located on land that is either classified as community, vested with the

State Government or other State Government agencies (RailCorp and Minister of Education). There

are only a handful of Council community facilities that are located on operational land and most

commonly are located within an existing shopping centre (Sylvania library and Illawong Community

Centre), part of a strata development (Sutherland library, Stapleton Community Centre, Cronulla

Central and Library) or in some cases are single parcels (Sutherland multi-purpose centre). The

available space in the South Village development falls within this select group of holdings, it is able to

be classified as operational land by Council and is zoned for mixed use.

Council provided community facilities for Kirrawee residents are found in its two neighbouring suburbs

of Gymea and Sutherland, both accessible via train or are within walking distance. Nearby in Gymea

there is the Hazelhurst Regional Gallery and Gymea Community Centre. At Sutherland, community

services include Council’s administration building, Sutherland library, police and court facilities,

Centrelink, Sutherland Entertainment Centre, Sutherland School of Arts, Sutherland Multi-Purpose

Centre, and Stapleton Avenue Community Centre. (See Appendix B)

The average rate of utilisation of Council’s meeting halls and community facilities with anchor social

services providers is 34%, indicating there is spare capacity across the existing portfolio to cater for

additional demand. What is clear is that the level of use varies greatly depending primarily on location,


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with facilities in town centres within close proximity to public transport hubs and shopping being most

desired. Facilities that offer views or are suited for parties for younger children with secure play areas

are also more heavily used.

For 2016/17 the use of meeting halls ranged between 8% (Grays Point) to 80% (Port Hacking

Community Centre). The remoteness of the Grays Point Centre from ready public transport or a local

town centre were factors in its low level of use, while Port Hacking benefits from its location and

secure function area.

Community facilities with one or more anchor social services providers are also usually highly utilised,

with Sutherland multi-purpose centre being the highest (83%), followed by Sutherland Seniors Centre

(69%). In both cases the proximity to good public transport and parking are key. Amongst the lowest

levels of use is the premises Council commercially leases at Station St Engadine (13%) for a non-

profit social service provider.

The current level of utilisation of the community facilities portfolio does not indicate a need to add

another meeting hall to its mix, while the changes in the government’s funding model for social

services providers, discussed earlier, creates uncertainty in the non-profit social services sector and

makes it less prudent to add to the portfolio to service this segment.

There is also an opportunity for shared use of some sports clubhouses. Council has received requests

from a few clubs seeking to hire their clubhouses from Council rather than enter into exclusive use

arrangements, which brings with it the obligation to maintain the facility in exchange for a peppercorn

annual rent. If this arrangement were to gather momentum, it would pave the way for many more

‘community facilities’ to become available to a wider range of user groups, including small local

businesses. To date there are two clubs on hire arrangements with a third seeking to enter into such

an arrangement.

Commercial property portfolio

Council does have nine holdings in its commercial property portfolio (see appendix D) with a total

market value of $55.07M and a ROI of just under 8% as compared with Council’s return on its cash

investments of 2.7% (31/10/2017). This portfolio, though not actively traded, has been providing

Council with a useful revenue stream to aid in it continuing to provide its current services.

The space available at Kirrawee is in the town centre and within a mixed residential and retail

development, a suitable addition to Council’s commercial portfolio. To lease the built space

commercially, it will need to be classified as operational.

An initial analysis on the potential return from this holding is provided in Appendix E (confidential).


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In summary, for the five options, from a property portfolio management perspective:

Option 1 (Dispose) – The return on investment on commercial property at just under 8% exceeds cash

investment returns (2.7%), making this a less preferred option. Disposal of this asset does however

allow Council to close the gap on its infrastructure backlog. To adopt this option, Council will need to

classify the built space as operational.

Option 2 (Hold) – This option could be pursued as it does not commit Council to any specific outcome

at this time.

Option 3 (Commercial lease) – This is the most preferred option, complimenting Council’s existing

commercial property portfolio holdings and ensuring an on-going revenue stream to fund services

offered to the community. To adopt this option, it is recommended that Council classify the built space

operational.

Option 4 (Non-profit lease) – The current average level of utilisation of the community facilities

portfolio, at 34% on average, does not support this option.

Option 5 (Commercial & Non-profit lease) – This option is less preferred as it in part adds to Council’s

community facilities portfolio, although it does also offer the opportunity to grow Council’s commercial

property portfolio.

Most preferred Option – Option 3, followed by Option 5


Long Term Financial Plan

The built space at Kirrawee will add a new infrastructure to Council’s portfolio. In a recent report to

Council, COR012-18, asset renewal and related asset maintenance expenses were of concern

and advice was provided that:

“Based upon current financial projections, Council has inadequate funds to adequately maintain its

infrastructure assets including roads, footpaths, parks and buildings.”

Council’s asset maintenance ratio is 98.50% in 2017/18, and is expected to decline to 83.10% in

2026/27. On current financial projections, the building and infrastructure renewals ratio will

deteriorate from 32.5% in 2018/19 to 43.07% in 2026/27. This has the impact of increasing the

infrastructure backlog from 2.94% in 2018/19 to 5.62% in 2026/27 and consequently an impact on

the long term financial position of Council.


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The use of this space will have an impact on Council’s long term finances. An income generating use

would assist with Council’s backlog, help fund the on-going maintenance of Kiln Park, a newly created

public park within the South Village development, estimated to need $150,000 pa (not allowing for

maintenance of water bodies). A use of the built space that requires bespoke fit-out and on-going

resources to enable services could need as much as $0.77M pa (i.e. a 9th library).

The allowed for ten year investment in infrastructure renewals and upgrades for each type of

community facility and their existing asset condition is shown in the table below.

Table 5 – Asset condition and LTFP investment

Libraries

Meeting

Halls

Community

centres

Art Gallery &

Performance venues

Total allocation in the current

ten year LTFP ($) $1,394,657 $3,954,310 $1,365,691 $830,411

Ave asset condition# 2.7 2.8 3.0 2.7

# Asset condition # is defined as 1Excellent no work required only normal maintenance, 2 Good only minor

maintenance work required, 3 Average maintenance work required, 4 Poor renewal required, 5 Very poor urgent renewal/upgrading required

This is as compared with the 2016/17 annual expense and income for each community facility type,

including depreciation, detailed in the table below.

Table 6 – Council’s recurrent funding into community facilities (2016/17)

2016/2017 financial year

8

Libraries

28 Meeting

Halls

12 Community

Centres1

1 Art Gallery &

3 Performance

venues

Total expenditure incurred

($) 6,750,996 1,310,387 411,148 5,255,146

Depreciation ($) 288,164 630,596 96,742 261,118

Total income earned ($) 878,317 862,444 54,668 2,704,825

Council funding in

support in total ($) 6,160,843 1,078,539 453,222 2,811,439

Council funding support/

facility ($) 770,105 46,644 59,295 702,860

1 The commercially leased facility at Station St, Engadine not been included as Council does not incur costs

associated with ownership. Council pays an annual lease fee of $75,000 pa for this facility. The community

hall at Illawong has been included as Council attends to maintenance of this facility as part of its long term

pepper corn lease.

Facilities that support building community connections do require funding support from Council to

varying degrees. It’s clear from the table above, that where staffing resources are required in order to

enable the range of services to be offered from the facility, Council provides larger amounts of on-

going funding as in libraries, art galleries and performance venues. Where the facility is more passive


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and offered as ‘space’ to be used, or occupied by others who in turn provide a range of services, the

level of Council’s recurrent support is much reduced, i.e. meeting halls and community centres.

In addition, there may be a need to fit-out the space that is provided, to suit the final purpose. In the

case of longer term commercial tenancies, fit-out could be negotiated to be borne by the tenant, to suit

their business needs. This is common in commercial leases.

If the space is considered for use by a Council or third party non-profit service provider, that an

allowance of up to $2.5M may need to be made for fit-out. It is expected that the recurrent costs for a

modern day community hub, with technology and food and beverage offerings, provided by Council,

would be $370,000 pa (with depreciation being $95,000 pa of this total) in addition to the fit-out costs

with an NPV of -$3,306,234 over ten years discounted at 2.1% as recommended by IPART (Feb

2017).

Asset rationalisation potential

Council is able to dispose of one or more of its existing meeting halls that have low levels of utilisation

and have this built space fitted out and resourced as a modern community hub. This option has

several hurdles including successful negotiation with existing users of the halls to relocate and the

reclassification of the land the halls occupy from community to operational, a lengthy process that also

calls for a high degree of community notification via public advertising. Council can also choose to

exist from lease arrangements it has for some halls.

There are several meeting halls that would be suitable to be considered for disposal/exit, should

Council wish to rationalise its meeting hall portfolio, with Boomerang hall in Sylvania, located in a local

shopping strip and could be part of a future amalgamated development proposal, being the most

suitable. Council can also consider exiting from lease arrangements it presently has with third parties

for halls and community centres. The Mills Room (currently under long term lease with the Department

of Education and the subject of a future report) and Station St Engadine (commercial lease

arrangement and provided to EDYS) are the most suitable to be considered. Both would require

community engagement and information.

Funding sources

Access to Section 94 developer contribution funds for this purpose would require a round of public

exhibition and community consultation as Section 94 revenue can only be used to fund capital works

that are within the works schedules that form part of the plan. The two 2016 Section 94 Plans are

specifically targeted at open space and therefore do not contain contributions for community facilities.

However, when the 2003 Community Facilities Plan was closed in 2016, Council went through a public

process to establish how remaining funds in the plan would be spent. Council resolved that the

balance of funds would be allocated to upgrades of Sutherland Library and an expansion of


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Hazelhurst Art Centre. To date there is $5,096,180 in the fund for this purpose. If all development

applications which were subject to this plan were to proceed, a further $3,415,180 would be available.

To date $1,664,320 has been allocation to a project at Sutherland Library. Should Council decide that

the Kirrawee space is to be a community facility and that it is the best use of the available funds,

Council could repeat the public process and, subject to consideration of any submissions, reallocate

the available funding.

In summary, for the five options, from a long term financial planning perspective:

Option 1 (Dispose) – The ability to secure a one-off cash injection to be applied to existing services or

the infrastructure backlog, makes this an attractive option.

Option 2 (Hold) – This option delays the possible income that could be derived from this space, and

has an opportunity cost attached to this delay. As such it is less preferred.

Option 3 (Commercial lease) – When considered against the pressure Council faces to provide

sufficient cash flow for its existing range of services and to address its backlog of infrastructure, this is

the most preferred option as it provides for an on-going income stream.

Option 4 (Non-profit lease) – This option increases Council’s on-going operating costs and depending

on the type of use, could range from a modest recurrent operating impact to a significant one which

has not been allowed for. It is the least preferred option.

Option 5 (Commercial & Non-profit lease) – While this option does provide for some on-going income

it does not optimise the income that could be derived from the space, and is less preferred.



POLICY AND LEGISLATIVE REQUIREMENTS

The Environmental Planning and Assessment Act, 1979 the (EPA) makes provision for the Voluntary

Planning Agreements (VPA) via Division 6, Subdivision 2, clause 93F. Clause 93F (2) enables

payments to be made / land dedicated or costs for providing public services or amenities recouped

This includes but not limited to affordable housing, transport or other infrastructure. This mechanism

has been used in the case of the South Village mixed residential / retail development.

The provision of community facilities, such as the park, playground and space that fosters community

connections on site as part of the development satisfies a range of requirements of the ‘Act’. It is on

site, within walking distance of all residents, is being provided as the development takes place and will

be predominantly but not exclusively used by the residents of the development.


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A detailed DA has been approved showing a 1,500 square metre community facility in accordance

with the concept approval and the associated, but yet to be finalised VPA. At that point the

development has been approved and constructed in accordance with the concept plan a line can be

ruled under that approval regime such that the concept plan has no further work to do.

The VPA with Kirrawee South Village is due to be finalised. After initially requiring restrictions on the

use of the built space being provided to Council, the developer has advised that future uses of the site

are not limited to community uses. This is also consistent with Council’s letter of 30 January 2015 to

the Planning Assessment Commission which was then incorporated as a modification3 reference to

the VPA.

Should Council resolve to proceed with Option 3 (commercial leasing), a DA to sub-divide the 1,500

square metre space into smaller shop lots could be lodged, and this could be dealt with as local

development.

In order to ensure the space is available for the broadest range of uses, the built space to be

transferred should be classified as operational land under the Local Government Act 1993 rather than

as community land. The leasing of community land is restricted under Section 46 of the Local

Government Act 1993, is required to be governed by a Plan of Management and prevents the property

being sold.

The space currently sits on one title identified as Lot 2 within its own stratum plan and it therefore able

to be subdivided into its own strata plan. This can be achieved via a development application process.

It should be noted that the built space being provided does not come with any dedicated parking

allocation. This has been advised to Council previously and the position from the developer has not

changed. The developer has informally advised Council that the space may be available for fit–out

from October this year.

RISK

All options present varying degrees of risk to Council. The primary risk in terms of the possible uses of

the built space revolves around the interpretation of the terms of its provision as part of negotiations,

be it purely for community use versus unrestricted use. An unrestricted use would allow Council to

enter into commercial lease arrangements and derive a cash flow to fund community services.

There are some moderate risks associated with entering into commercial arrangements with tenants,

most of which can be mitigated through sound due diligence. Council is familiar with leasing of

commercial holdings in town centres and mixed development centres, and this reduces the exposure

to this risk.


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Federal government changes to its funding models for social services will have an impact on small,

local non-profit service providers, and the extent of this is not yet known. This does add some

uncertainty to the option of providing this space to a third party non-profit social services provider.

Disposing of this space, and applying the monies towards reducing the gap in infrastructure backlog or

to support existing services provided by Council has far less risk than other options but does need to

be well explained to the community so there is an appreciation of what is being achieved via the sale.

This option also reduces Council asset burden.

The hold option delays a decision being reached in terms of the use of the space, and does result in

Council forgoing income during the period the space lays dormant.

In summary, for the five options, from a risk profile is:

Option 1 (Dispose) – On balance the least risk option as it allows Council to realise the value within

the space and apply it to either its infrastructure backlog or to provide for existing services.

Option 2 (Hold) – A lessor risk option, that sees Council forgo some income in the short term.

Option 3 (Commercial lease) – A moderate risk option as an undertaking but is subject to some

uncertainty in terms of the VPA.

Option 4 (Non-profit lease) – A higher risk option given the uncertainty in the non-profit sector in the

next few years as the Federal government funding model for the sector undergoes change.

Option 5 (Commercial & Non-profit lease) – Has the combined risks of Options 3 and 4, and is the

least preferred option as a result.



STRATEGIC ALIGNMENT

The articulation of how Council builds community connections is described in the Community Strategic

Plan.

The Plan describes the community’s desire to be informed and engaged in its future (Output 1), to be

caring and supportive (Outcome 3), having a culturally rich and vibrant community (Outcome 4), with

liveable places and a high quality of life (Outcome 6), achieved through:


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Having opportunities that will build a sense of community

Providing welcoming, safe and accessible places and spaces that encourage active lifestyles

Identifying and appreciating places, spaces and stories that contribute to our Sutherland Shire

identity

optimising the potential of our facilities to deliver a range of engaging community and cultural

experiences

More specifically Council has committed to a range of deliverables, to actively build community and

connections. These are detailed in the following table.

Table 7 – Strategic alignment with building community connections

Community Strategic

Plan Strategy

Delivery Program (2017-2021) Deliverables

1 An informed and

engaged community

Develop and implement and engagement strategy.

Develop and implement a customer experience strategy.

3 A caring and supportive

community

Build capacity within the community sector through professional support,

advice and referrals.

Develop and implement a Property Services plan that facilitates effective

and best use of assets that meet the changing needs of the community.

4 A culturally rich and

vibrant community

Deliver a range of programs, exhibitions, performances and events that

engage various segments of our community.

Encourage and support volunteerism across a diverse range of activities

(bushcare, art gallery, animal shelter, lifeguarding).

6 A liveable place with a

high quality of life

Enhance accessibility in the public domain through a range of programs.

CONCLUSION

The following table summarises the most, second most and least preferred options when considered

against the five aspects discussed in this report;

Aspects Most preferred 2nd most preferred Least preferred

Community

expectation

Option 1 (Dispose)

Option 2 (Hold)

Option 4 (Non-profit lease)

Community need Option 3 (Commercial lease)

Option 5 (Commercial & non-profit lease)


Property portfolio

management

Option 3 (Commercial lease)



Long term financial

plan (LTFP)

Option 3 (Commercial lease)

Option 1 (Dispose)


Risk Option 1 (Dispose)

Option 2 (Hold)



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Based on this, the option that best meets community expressed preference and need, sound property

portfolio management to increase Council’s revenue stream, assist with its long term financial planning

and risk to Council is Option 3 (commercial leasing), with Option 1 (sale of space) as the second most

preferred option. Both these options afford Council the opportunity to derive revenue that can be

applied to its existing services that build community connections and its infrastructure backlog (see

Appendix E).

The least preferred option is option 4 (solely for non-profit use), with a projected ten year NPV of -

$3,306,234 and a capital fit-out outlay of $2.5M.

The 1,500 square meter lot is being transferred to Council as a condition of DA15/1134. Section 25 of

the Local Government Act, 1993 requires all land owned by Council to be classified either Community

Land or Operational Land. It is recommended that this land once owned by Council should be

classified as operational land to provide Council flexibility to lease, licence or sell part or all of the

property should it resolve to do so.

The built space will come to Council as a stratum, and it is recommended that Council proceed to

lodge a development application to sub-divide this space into the most advantageous configuration of

lots, taking engineering limitations and building code requirements into consideration. This is with the

aim of securing tenants that provide a sound commercial return to Council, and also engage in

businesses that support the building of social networks, encourage intergenerational interaction and

facilitate community connections.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Manjeet Grewal, Director Shire

Services, who can be contacted on 9710 0265.

File Number: 2015/216182


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Appendix A – Diagrams of South Village development and contributed built space


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Appendix B – Maps showing locations of Council’s community facilities in Kirrawee, Gymea and Sutherland

Shire wide


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Appendix C – Details of Council’s cultural assets (community halls, libraries, art galleries and performing art venues and 3

rd party facilities anchored by social service providers)

Meeting Halls

Facility Name

Address Land Classification

Zoning Regular Hirers

Alfords Point Community Centre

48R Coachwood Crescent, Alfords Point

Community Land

RE1- Public Recreation

Casual Functions, Pilates, Training Group for Mums, Fitness Group, Progress Association, Karate, Sutherland Shire Art Society, Titans Football Club.

Billa Road Playgroup Hall

50R Billa Road Bangor

Community Land


Billa Road OOSH, Menai Baptist Church, Playgroup NSW

The Mill Room

132 Old Illawarra Road, Bangor

Not Classified – Minister of Education

SP2 – Educational Establishment

Gifted Families Support Group, Before & After School Care

Bundeena Community Centre

17-37 Liverpool Street, Bundeena

Community Land


Casual Functions, Karate, Zumba, Academy of Performing Arts, Community Band, Playgroup, Progress Association, Senior’s Exercise, Pilates, Frail Aged Day Club,

Como School of Arts

15-17 Novara Crescent, Como

Community Land

E4 – Environmental Living

Volunteer management committee

Port Hacking Community Centre

184 Gannons Road Caringbah South

Community Land


Casual Functions, Pilates, Yoga, Aust. Sewing Guild, Ballet classes, Botany Bay Family History Soc., Exercise for Seniors, Endeavour Seniors Computer classes, Garden Club Aust. Inc., Aged Day Care, Exercise classes, Aged Day care – socialisation.

Gunnamatta Pavillion

39-41 Nicholson Parade, Cronulla

Not Classified – State of NSW


Casual Functions, Pilates, Yoga, Cronulla Youth Weight Training, Tai Chi, Gymea Community Aid & Info, Bootcamp, Dance, Interactive Sports, Little Ballerninas, Fitness training for over 50’s, St George Hospital Strengthening for over 60’s, Sutherland Shire Carer Support Program.

Anzac Oval Youth & Rec Centre

111R Anzac Avenue, Engadine



Casual Functions, Drama, Aust Oztag Sports Assoc., ‘Ready Steady Go’, Multi-Cultural Frail & Aged Day Care, Karate, Tai Chi, Gymnastics Aust Ltd.,Kirrawee Indoor


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Facility Name



Netball Club, Little Kickers & Little Rugby, Yoga, Martial Arts, Physical Culture, Fitness, Weight Watchers,

Grays Point Community Centre

116-120 Grays Point Road, Grays Point

Community Land


Casual Functions, Progress Association, Karate, Dance

Gymea Bay Community Recreation Centre

2R Avenel Road Gymea Bay

Community Land


Casual Functions, Dance, Gymea Bay Cricket Club, Gymea United FC, Karate, Little Ballerinas, Zumba, Tai Chi, The Quilters Guild

Gymea Bay Resource Centre

276B Gymea Bay Road, Gymea Bay

Community Land


Playgroups and Children’s parties

Gymea Community Centre

31-33 Gymea Bay Road, Gymea

Community Land



Illawong Community Centre

273 Fowler Road Illawong

Not Classified – Privately Owned

B2 Local Centre

Casual Functions, Pilates, Aust Multiple Birth Assoc meetings, Autism Community Network, Training Group for Mums, Progress Association, Karate, Meditation, Exercise for over 50’s

Maianbar Community Hall

48R Pacific Crescent, Maianbar




Marton Hall Kurnell

102 captain Cook Drive, Kurnell

Community Land


Table Tennis, Pensioner Recreation club, ORANA, TaeKwonDo

Loftus Community Hall

129R Loftus Avenue Loftus

Community Land


Casual Functions, 3Bridges Community Inc., Pilates, Australian Lace Guild, Congregation of Christians Church, Martial Arts, Jazzercise, Tai Chi, Dance, Playgroup, Church meetings, Physical Culture, Ballroom dancing, Sutherland Shire Art Society, Fitness

Menai Children’s Services Centre

4R Hall Drive Menai

Not Classified – Minister for Education


Menai Before & After School Care, Playgroup

Miranda Community Centre

97 Karimbla Road Miranda

Community Land


Casual Functions, Augustine Fellowship meetings, Tai Chi, Caring, Precinct Residents Assoc Inc. Community Restaurant, Exercise group, Narcotics Anon, Gamblers Anon, Alcoholic’s Anon, Gymea Community Aid & Info,


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Facility Name



Bellydancing, Dance, Church, Children’s art classes, Maltese community social meetings, BeConnected, NSW Dept of Education, Playgroup, Martial Arts, Singing Lessons, Exercise classes for seniors, Solace bereavement group, Church meetings, St George Hospital Strengthening for over 60’s, STEM Aptitude Development, Syd Academy of Chess, Sydney U3A Inc, The Embroiderers’ Guild, Meditation classes, Weight Watchers.

Miranda Youth Centre

244R The Boulevarde, Miranda – Access from Central Road Miranda

Community Land


TaeKwondo, EIS Health Ltd, Ballroom Dancing, Interactive Sports, Little Kickers & Little Rugby, Gentle exercise for older adults, Miranda RSL Youth Club, Fitness Classes, Shire Music Theatre, Seniors Exercises, Spoke Word Tabernacle (Church), Tai Chi, Martial Arts,Physical Culture.

Oyster Bay Community Centre

117 Como Road Oyster Bay

Community Land


Casual Functions, Boxercise, Pilates, Art group, Yoga, Playgroups, Probus, Taekwondo, Art Lessons

Oyster Bay Oval Hall

88R Como Road Oyster Bay

Community Land



Sandy Point Community Centre

198 St GeorgeCrescent, Sandy Point

Community Land



Sutherland Senior’s Centre

749 Old Princes Highway, Sutherland

Not Classified - Railcorp NSW

SP2 Railway Aust. Baton Twirling Association, Textile Art classes, Prayer group, Zumba, Older Womens’ Network (OWN), Singing group, Playgroup, Seniors’ exercise classes, Children’s Choir, AA’s.

Boomerang Hall

57A Princes Highway, Sylvania

Community Land

B1 – Neighbourhood Centre

Apostolic Church Aust., Prayer Sessions, Dance City Performing Arts, Prayer sessions, Future Performing Arts, Tai Chi, Nycole Osborn-Smith


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Facility Name



Dance, United Moves Tapfit, Zumba Classes

Sylvania Community Centre

18-26 Canberra Road, Sylvania

Community Land


Casual Functions, Calligraphy Southscribes Inc., Chatelaine Quilters Inc., Continuum Art Society Inc., Parkinson’s NSW Inc., Handcraft group, The Bridge Club, Physical Culture

Sylvania Heights Community Centre

288R Box Road, Sylvania



Casual Functions, Endeavour Seniors’ Computer Club, KRS Dance, Little Ballerinas, Physical Culture,

Woronora Heights Community Centre

67A Warrangaree Drive, Woronora Heights



Casual Functions, Church group, Dance.

Yarrawarrah Community Centre

2R Laurina Avenue Yarrawarrah


E4 – Environmental Living

Casual Functions, Pilates, Fitness Training, Yoga, Dance, Probus, Self Defence Classes, Playroup

Facilities with anchor 3rd

party social services providers

Facility Address Land Classification

Zoning Anchor Social Services providers

Other Users

Stapleton Avenue Community Offices

3A Stapleton Avenue, Sutherland

Operational Land

B3 – Commercial Core

- Sutherland

Shire Carer Support Service Inc

- People with

Disability Inc

- ORANA

- Wesley

Counselling Services (Uniting Church)

- St George

Community Housing Co-op Ltd

- Wesley

Counselling Services

- Wesley

Creditline

- Advance

Diversity Services Inc.

Casual Functions, 3Bridges Community Inc, Church of thte Foursquare Gospel, Frail aged social support group, Dance, Meditation, Probus, Social support group for Indian community, Shire Military Club, Shirelive, Sutherland Bushwalking Club, SS Historical Society, The Greens NSW, Weight Watchers

Wesley Community Services

749b Old Princes Highway, Sutherland:

Railcorp - Not classified


Wesley Community Services Limited t/as Wesley


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Other Users

Mission for Wesley Counselling Services

Sutherland Child and Family Health Clinic

749c Old Princes Highway, Sutherland:

Railcorp - Not classified


Sutherland Child and Family Health Clinic

Miranda Community Aid Kiora Park

95a Karimbla Rd Miranda

Community Land

RE1 – Public Recreation

BeConnected Community Services Inc

Caringbah Senior Citizens Centre

386 Port Hacking Rd, Caringbah

Community Land



Acrobatics for pre-schoolers, Scottish Country dancing, Cronulla Spiritualists Church, Lions Club of Caringbah Inc, Stretch & mobility classes, Save the Children Sutherland Branch, Exercises for over 50’s, St. George Hospital Aged Care – strengthening for over 60’s, Meditation classes, Wendy Gibbs School of Ballet.

Caringbah Womens Health Centre

348R The Kingsway, Caringbah

Operational Land


ORANA

Cronulla Central office space

38-60 Croydon St, Cronulla

Operational Land



Casual Functions, 3Bridges Community Inc Allways Rockin’ Dance School, Australian College of Tai Chi, Boccia NSW, Caringbah Healthcare Centre Tai Chi, Christian Outreach (Church) Centre, Senior’s Activities, Fellowship Services (NA), Pilates classes, No Lights No Lycra (dance), Mums business meetings, SESLHD Health promotion, Wellbeing group, Tai Chi, Sydney U3A Inc, Tiny Tutus


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Other Users

ballet

Commercially leased shop

20-22 Station St Engadine

Privately owned – not calssified


EDYS (part of Sutherland Shire Family Services)

Engadine Treasure Chest Toy Library

116 Caldarra Avenue Engadine

Community Land


Engadine Community Services

Menai Community Centre - offices

North Wing and offices, 34 Allison Cres, Menai

Community Land


3Bridges Community Inc

Casual Functions, AA’s, Women’s Group, Laughter Yoga, EIS Health Ltd, Children’s Art Classes, Dance fitness over 50’s, Little Ballerinas, Playgroup, Karate, Kindermusik, Meditation, The Friendship Force of Aust Inc. Toastmasters

Jannali Community Centre - offices

Cnr Mary St & Jannali Ave

Community Land

B2 – Local Centre

Kurranulla Aboriginal Corporation

Casual Functions, Square Dancing, Line Dancing, Christ New Creation Church, Congregation of Christians Church, Fitness class for seniors, Soccer Skills, Karate, Zumba, Taekwondo, Tango dance classes, Probus Club, Playgroup, Sutherland Shire Art Society

Sutherland Multi-Purpose Centre

123 Flora Street, Sutherland

Operational Land


- Civic

Disability Services Limited

- Sylvanvale

- Toy Library

AA’s, Musical Theatre, Narcotics Anon, Gamblers Anon, Support group for women of domestic violence, Pilates, filming, National Park Assoc meetings, Eastern dance, Karate, Playgroup, Overeaters Anonymous, Wildflower group, Healthy Life & Bible classes, Tai Chi, Street Beatz Hip


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Other Users

Hop, Sutherland Shire Writing Group, Sutherland Spiritual Centre, The Sutherland Theatre Co Inc

Sylvania Cottage (Venetia St)

88R Venetia St, Sylvania


R2 – Low Density residential

Civic Disability Services Limited

Children’s parties, Tutoring, Children’s’ language classes, Playgroups

Libraries

Library Address Land Classification Zoning

Cronulla Library Cronulla Central Cronulla

Operational Land


Sutherland Library 30 – 36 Belmont Street Sutherland

Operational land B3 – Commercial Core

Sylvania Library Southgate Shopping Centre Sylvania –

Not classified – private ownership


Bundeena Library Bundeena Public School 48R Scarborough Street Bundeena

Not classified - Minister for Education


Menai Library 34-40 Allison Crescent Menai

Community Land B3 – Commercial Core

Caringbah Library

376 – 378 Port Hacking Road Caringbah


Engadine Library 116 Caldarra Ave Engadine


Miranda Library 31 Wandella Road Miranda


Art Galleries and Performance venues


Zoning Other Users

Hazelhurst 782 – 804 Kingsway Gymea

Community Land RE1 – Public Recreation

School of Arts Sutherland

21-23 East Parade Sutherland –


Sutherland Shire Historical Society

Sutherland Entertainment Centre

30 Eton Street Sutherland


Engadine Community Centre

1034 Old Princes Highway Engadine


Engadine Community Services


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D

Appendix D – Council’s commercial property portfolio

Description Category

Cronulla Bicentennial Plaza Kiosk No1 (Southern) and Kiosk No2 (Northern) (Structures Only)

Retail

Croydon St (38-60) Cronulla - L101 DP1142400, Retail Outlets - Shops 1 to 10, Cronulla Central (Part Land & Part Building)

Commercial / Retail

Cronulla St (85-89) Cronulla - L1 DP1076758 (Land & 3 Retail Shops in 3 Two Storey Buildings with 2 Commercial Offices & 1 Residential Accommodation above) (Restricted Asset for Note 14)

Commercial / Retail

Cronulla St (17-19) CRONULLA - L1 DP564863 (Land & 3 retail shops)

Retail

Waratah St (29-33) Kirrawee - L26 SP50936 (Factory units, Unit 1 & Suites 1 & 2 of Unit 1A) (Land & Building)

Commercial

Allison Cres, Menai (152-194) L3801 DP848208 (Menai Marketplace), (231-237) L3 DP865082 (McDonalds), (239-243) L2 DP865082 (Civic Video) (3 Land parcels only)

Commercial / Retail

Eton St (36) Sutherland - L12 SEC46 DP802 (LAND & BUILDING - Grd Lvl Centrelink & Lvl 1 Concrite)

Commercial

Belmont St (33-35) Sutherland - Lots 4 to 17 SP48485 (Levels 1 & 2, 'Kirkby House') (2 Building Levels & 14 Land Parcels)

Commercial

Bay Rd (33-39) Taren Point - L111 DP835986 & L22 DP805873 (2 Land parcels & 7 buildings/ structures)

Commercial


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SER014-18 PROPOSED ACQUISITION OF 100 COMO ROAD OYSTER BAY FOR

OPEN SPACE PURPOSES

Attachments: Appendix A⇩ and Appendix B (under separate cover)

EXECUTIVE SUMMARY

The property at 100 Como Road, Oyster Bay adjoins Oyster Bay Oval, is zoned for open space

and is privately owned. It is one of a number of properties earmarked for purchase under the

Section 94 Development Contribution Plan 2016, to increase open space at Oyster Bay Oval.

As this land is listed in the Sutherland Shire Local Environmental Plan 2015 Council has a

statutory obligation to acquire this property, Section 94 funds are held in trust for this purpose.

Council has been attempting to acquire the open space zoned property for some time. Council

staff recently wrote to the owner indicating its interest in purchasing the property. The owner

responded, inviting Council to acquire the property.

Council arranged an independent valuation and based on this made an offer to purchase the

property subject to Council resolution. The owners have accepted Council’s offer and would like

to proceed with the sale.

The acquisition of the subject property satisfies an objective of the Sutherland Shire LEP 2015

and the Section 94 Development Contribution Plan 2016, and will assist Council in providing the

community with increased open space at Oyster Bay. It is recommended that Council approve

the purchase of this property.


THAT:

1. The acquisition of Lot 1 Deposited Plan 617854 known as 100 Como Road Oyster Bay to

increase open space at Oyster Bay Oval, Oyster Bay at terms and conditions to the

satisfaction of the General Manager be approved.

2. Council delegates the General Manager to execute any necessary documentation, in

accordance with the Power of Attorney dated 6 July 2016 BK 4710 No. 28, for the acquisition

of 100 Como Road, Oyster Bay.


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PURPOSE

To seek Council approval to acquire 100 Como Road Oyster Bay, a 535m2 parcel of land, for open

space purposes as identified in the Section 94 Development Contribution Plan 2016.

BACKGROUND

In 2005 Council Shire Wide Open Space and Recreation Facilities Plan was adopted. Council

identified a number of properties to acquire for open space purposes with Section 94 funds.

In 2016 a new plan was created, the Section 94 Development Contribution Plan. This plan authorised

Section 94 contributions to be pooled and that properties within the plan be acquired when listed for

sale on the open market or at the request of the owner.

DISCUSSION

Council is committed to creating public open space corridors identified in Council's LEP 2015. Council

officers regularly write to the owners of properties with open space zoned land held in private

ownership.

The owner of 100 Como Road Oyster Bay recently passed away and the property has transferred to

the beneficiaries. The owners contacted Council indicating their interest in selling the property to

Council. Council officers engaged an independent valuer, Southern Alliance Valuations to provide

advice on the current market value of the property. Appendix B, provided under separate cover,

contains confidential details of this value.

Council officers made an offer to purchase the property at the price indicated by the valuer, the

property owner has accepted this offer which was made subject to council approval.


Council has a statutory obligation under LEP 2015 to purchase the property and compensation must

be determined in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.

Compensation must be assessed as the market value of the property and Council is required to pay

the property owners reasonable legal costs and valuation costs.

Section 94 Development Contribution Plan 2016 has carried forward funds from the previous plans

and is committed to acquiring properties as they are listed on the market or at the request of the land

owner. The acquisition of this property is the responsibility of the Property Services Unit utilising

existing resources.

http://www.legislation.nsw.gov.au/


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STRATEGIC ALIGNMENT

This proposal assists Council in meeting the following strategic objective:

Community Strategic Plan Strategy Delivery Program (2017-2021) Deliverables

6.3 Providing welcoming, safe and accessible places and spaces that encourage active lifestyles.

6F Develop and implement an Open Space Leisure and recreation Strategy.


Sutherland Shire Council had 12 plans relating to Section 94 funds. In 2016, these were amalgamated

into one plan, the Section 94 Development Contribution Plan. This plan will operate for a ten year

period from 2016 – 2026.

All land acquisitions and associated works will continue to be funded from the money held in trust that

was collected by the 2005 Shire-Wide Open Space and Recreation Facilities Plan. The properties will

be purchased as they come on the market or at the request of the land owners.

CONCLUSION

The subject property is earmarked for purchase under section 94 Development Contribution Plan

2016. Acquisition of this property will assist Council in achieving a contiguous open space corridor at

Oyster Bay for use by the community. The acquisition of this property satisfies an objective of the LEP

2015 and it is recommended that approval be given for the purchase of this property.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is Manager Property Services Lani

Richardson, who can be contacted on 9710 0614.



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SER015-18 PROPOSED TELECOMMUNICATION TOWER AT GYMEA BAY

Attachments: Appendix A,⇩ Appendix B,⇩ Appendix C⇩ and Appendix D (under separate cover)

EXECUTIVE SUMMARY

To rectify a telecommunication 'blackspot' in Gymea Bay, Vodafone proposes to install a new

telecommunication tower on Council land adjacent Gymea Bay Road Reserve at 2-6 Casuarina

Road, Gymea Bay (Lot 1 DP 10487).

The Telecommunications Act 1997 (Cth) permits carriers to install infrastructure on public land.

The proposed tower is considered a high impact installation due to its 24 metre height and

being a new installation, it will therefore require development consent.

Vodafone is seeking the land owner's consent to submit a development application for the tower

construction. Public consultation will also be carried out as part of the development application

process.

Council is entitled to compensation should the development application be approved.


THAT:

1. Council's consent, being the owner of the land located adjacent Gymea Bay Reserve at 2-6

Casuarina Road, Gymea Bay (Lot 1 DP 10487) is provided to allow a development

application to be lodged by Vodafone Pty Ltd for the construction of a telecommunication

tower.

2. Should the Development Application be approved, the Compensation/Access Deed, or

Agreement, or any other relevant documentation formalising the occupation by Vodafone Pty

Ltd to locate telecommunications equipment at 2-6 Casuarina Road, Gymea Bay (Lot 1 DP

10487) be approved at terms and conditions to the satisfaction of the General Manager.

3. In accordance with the Power of Attorney dated 6 July 2016 BK 4710 No.28, the General

Manager executes any necessary documentation to give effect to this resolution.


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PURPOSE

This report seeks Council's approval to provide its consent, as the land owner, for a Development

Application to be submitted by Vodafone Pty Ltd to establish a new telecommunication tower at

Gymea Bay. Furthermore, should the DA for the tower be approved, a Compensation/Access

agreement with Vodafone be formalised.

BACKGROUND

Vodafone propose to install a new telecommunication tower at the corner or Casuarina Road and

Gymea Bay Road, Gymea Bay (2-6 Casuarina Rd, Gymea Bay) to extend coverage to identified ‘black

spot’ areas. Mobile phone services are regulated by strict industry codes and guidelines. Before

building any new structures service providers must consult with communities, produce environmental

electromagnetic energy (EME) reports and meet strict licensing conditions. These requirements are

assessed as part of the development application process, the precursor being owner's (Council)

consent being granted.

Previously Vodafone had considered another site in the area at the corner of Ellesmere Road and

Warcoo Avenue, Gymea Bay. Following community consultation including feedback and comments

from Council (MOT003-18) raising concerns about the site, Vodafone abandoned the Ellesmere Road

site and subsequently identified this alternative location.

The overall height of the proposed tower is approximately 24 metres. The proposal also requires a 4.5

metre by 2 metre equipment shelter located nearby.

DISCUSSION

Under the Telecommunications Act 1997 (Cth), carriers such as Vodafone have powers to install and

operate telecommunication facilities on any land. Carriers may seek Council’s consent to place the

telecommunication facilities in public spaces rather than on private land. As the owner of the land,

Council is entitled to seek compensation. See Appendix D, provided under separate cover, for

proposed terms and conditions.

The proposed telecommunication tower is considered a high impact installation due to it being a new

facility, as well as the height of the tower which is approximately 24 metres. Therefore it will require

development consent.

Council's support in principle by providing owner's consent for any development application will not

fetter Council's discretion as the consent authority in this matter in accordance with the Environmental

Planning & Assessment Act, 1979.


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The management of telecommunication tower agreements is the responsibility of the Property

Services unit utilising existing resources.

COMMUNITY ENGAGEMENT

The proposal has been referred to internal stakeholders with an operational interest in this site and no

objections have been raised to the installation of the tower and equipment shelter.

Council will publically exhibit a proposal to occupy Council owned Community classified land in order

to comply with Section 47 of the Local Government Act. The proposal will also be publicly exhibited as

part of the development application process.

STRATEGIC ALIGNMENT

The proposal assists Council in meeting the following strategic objective:

Community Strategic Plan Strategy Delivery Program (2017-2021) Deliverables

3.1 The community has access to services,

programs and facilities to support and enhance

health and wellbeing.

3M Develop and implement a Property Services

Business Plan


Council has no adopted policy for Telecommunication Facilities however IPART guidelines have been

followed in the past when negotiating commercial terms for the compensation agreement.

Telecommunication carriers do have powers under the Telecommunication Act, 1997 (Cth) to install

facilities on public land however their preference is to negotiate with land owners to reach agreement

on new facilities rather than rely on their powers under the Act.

CONCLUSION

Council providing consent as land owner for the development application to allow the installation of the

monopole and ancillary infrastructure is important for the ongoing provision of telecommunication

services to nearby residents. Council endorsing the Compensation/Access Deed will ensure Council is

appropriately compensated for the use of its land as well as providing an ongoing income stream for

Council.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Lani Richardson, Manager Property

Services, who can be contacted on 9710 0614.



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Documents

Agenda of Shire Services Committee - 5 March 2018€¦ · 2018-03-05 · the community benefits offered by the developer as its contribution, including the 1,500 square meter space