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TaurangaCity Councll - Long ToTm Plan Deliberations

2-5 June 2015

Property Sales DC No: 181

Confidential Attachment A - Reason for Confidentiality

Attachment A is to remain in confidential to enable Council to carry of commercial activity (being its current land sales programme) without prejudice or disadvantage.

Confidential Attachment A - Transfer to Open

Attachment A can be transferred into the Open upon the approval of the Long Term Plan 2015-25.

Purpose 1. This report sets out the summary of submissions on the proposed property sales and

the recommendations on how to progress the land sale proposal in the Draft Long Term Plan 2015-25 (DLTP).

2. There are two parts to this report:

(a) The proposed sale of 95 Newton Street, known as Soper Park; and (b) General land sales programme.

Executive Summary 3. The financial section of the DLTP (Section 07) proposed that $20m be derived from

land sales. We have forecast a budget of $27.7m from land sales. This is made up of: (a) 95 Newton Street - $2.6m (b) Other land:

• Smiths, Merricks, Ohauiti - $10m • $15.1m from other disposals over the term of the LTP of which

$2.2m is from disposal of land within the marine precincL 4. With respect to 95 New/ton Street:

(a) The Council has proposed the sale of 95 Newton Street, also known as Soper Park, as it considers the land surplus to requirement. The land is in an industrial part of Mount Maunganui and was historically used to run private events subject to a resource consent.

(b) That resource consent is expiring and the consent holder has not applied for a renewal of the current consent, or a new one. The Council currently has no open space requirement. However, further analysis is to be undertaken as to whether some ofthe land is required for event purposes.

(c) The rating value of the land is $2.6m. Valuation advice will be sought following approval from the Council to proceed to the next step of investigating the proposed sale. We have projected disposal value at $2.6m in the LTP. The land is proposed for sale in 2016/2017.

Objective ID: A6286491 Property Sales - 1 -

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Council - Long Term Plan Deliberations

2-5 June 2015

(d) Once the LTP has been approved, valuations and advice on offer back requirements under the Public Works Act will be sought.

5. Report DC 140 relates to Smiths, Merricks and Ohauiti farms. The LTP forecasts disposals for these parcels of land to the value of $10m. Smith's farm is proposed for disposal in 2017/18, Merricks in 2018/19 and Ohauiti 2019/20.

6. The remaining $15.1m is proposed to be realised from the existing sales programme approved as part of the 2012 LTP.

(a) Of this $2.2m is from the sale of land within the marine precinct, which will be used to fund the formation ofthe Marine Precinct. (Ofthe $5m, $2.8m was sold in 2014).

(b) The remaining $12.9m is to be realised from the existing sales programme, a large portion of which is open space and reserve land. An additional property for sale is 50 Miro Street to fund the High Performance Sports Centre, which based on valuation advice could yield $582,000. The attached confidential report addresses the likely realisable values of proposed disposals. Attachment A.

7. Once the LTP is adopted the list of properties to be sold can be made public.

8. With respect to submissions, there were four submissions opposing the sale of 95 Newton Street. The reasons were that the green space in this area is valued by those living and working in this part of Mount Maunganui and that the Council should not be disposing of any green open space land.

9. Overall, many submitters raised the need to review the disposal of open space land and the Council process for declaring open space as surplus to requiremenL The disposal of all open space land requires specific consultation with the public under either the Local Government Act 2002 or the Reserves Act 1977 (for those parcels of land classified as 'recreation reserve'). Iwi may also need to be consulted under the Council's Recognition of Tangata Whenua Interests and Aspirations Policy.

10. To inform the consultation programme, it is proposed that a strategic review be undertaken of all open space/reserve land, its location, its proximity to future developments and a full cost benefit analysis addressing any opportunities for which the land may be required before being able to be considered surplus to requirement.

11. Such a strategic review of the open space disposal programme, would look at rental revenue (current and future), future opportunities, cost of sale and other matters including community interest, which the submissions on the DLTP have shown to be high with respect to open space land.

Recommendation/s That the Council:

(a) Receive Report DC181 - Property Sales. (b) With respect to 95 Newton Street:

i. Undertake further analysis as to whether some of the land is required for event purposes;

ii. With regard to that part of the land considered surplus to requirement, identify persons to whom the land should be offered back to;

iii. If no offer back requirements exist proceed to commence the consultation process to dispose ofthe property at 95 Newton Street, Mt Maunganui;

PropertySales Objective ID: A6286491

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Council - Long Term Plan Deliberations

2-5 June 2015

(c)

(d)

(e)

1. Progress discussions with the New Zealand Transport Agency (NZTA) with respect to the acquisition of the strip of land to the rear of 95 Newton Street to enable the whole of 95 Newton Street to be considered for disposal as one parcel; and

2. In conjunction with other open space land undertake a strategic review and propose any relevant plan changes for parcels of land that ought be re-zoned prior to sale.

Approve the property land sales plan with budgeted revenue of $27.7m over the LTP period and note that where appropriate strategic reviews and plan changes will be undertaken.

Retain Attachment A in confidential to enable Council to carry of commercial activity without prejudice or disadvantage.

Transfer Attachment A Into the Open upon the approval of the Long Term Plan 2015-25.

Discussion

Land sales plan 12. The projected revenue per year in the DLTP is as follows:

Table 1: Projected Land Sales

Forecast Budget LTP 2015-2025

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/25 Total 10 Years 2015/161 10,252,147| 11,621,500| 3,322,800 4,620,000 2,500,000 32,316,447

Less Budget carried forward from 2014

-4,580,213

27,736,234

13. The financial section of the DLTP (Section 07) proposed that $20m be derived from land sales. We have forecast a budget of $27.7m from land sales. This is made up of:

(a) 95 Newton Street - $2.6m

(b) Other land, $25.1 m constituted of:

• Smiths, Merricks, Ohauiti - $10m;

• Marine precinct $2.2m; and

• Other land, $12.9m.

14. With respect to the potential disposal of Smith's, Merricks and Ohauiti farms, the recommendation has been that these parcels are surplus to requirement. Report DC 140 relates to these disposals.

95 Newton Street 15. The property at 95 Newton Street is called Soper Reserve. This property is not a

recreation reserve under the Reserves Act 1977, but is held under the Local Government Act 2002 as a park. The land, legally described as Lot 5 DP 22953,

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Council - Long Term Plan Deliberations

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95 Newton Street 15. The property at 95 Newton Street is called Soper Reserve. This property is not a

recreation reserve under the Reserves Act 1977, but is held under the Local Government Act 2002 as a park. The land, legally described as Lot 5 DP 22953, 8,570m^, is owned by the Council. Attachment B is an image of the location of the property.

16. Attachment C shows the zoning under the City Plan: Open Space. Its use is a park. There is no other underlying zoning. Section 138 of the Local Government Act 2002 requires that a Council consult prior to the sale of any park land.

17. The land was acquired by Council in the following way:

• 1,358m^ was acquired by land exchange with F.W and CZ Soper; the land was not a gift from the Soper family.

• Part of the land is the former Aerodrome Road and prior to that was Maori land dating back to late 1800s.

• Part was vested in the Council as a reserve contribution from Port Services Limited.

Summary of Submissions Council's proposal as outlined in Consultation Document (where applicable)

Possible disposal of 95 Newton Street

Total no. of submissions

No. of submissions in supportfor Council's proposal

No. of submissions neither in support or against (or not clear)

No. of submissions against the proposal

Four

Key points raised in support of the proposal

None

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Key points raised against the proposal

Loss of green space in industrial area being used for sporting and recreation purposes; Retain as green space reserve; Retain for future generations and amenity; Critical to the ongoing provision of concerts provided by the adjoining Brewers Bar; Required for other outdoor events; One of the main outdoor concert venues located at Mount specially with closure of old Mount Drury Sound shell and is well located to main tourist corridor in a non-residential area; Required for outdoor green space for children play, family picnics, exercising dogs, general recreation use; Provides an outdoor amenity area for surrounding industrial premises and their staff; Provide a general buffer between industrial and residential areas; The location of the park provides a suitable location for recreational (physical, leisure or cultural) activities that may not be available or suitable in other areas; Potential site for future facility development for sporting codes; and If sold, the land will be lost resource.

18. When the possible disposal of 95 Newton was previously consulted on in 2012 there were 118 submissions in opposition. Four of the same submitters opposed the proposed sale in 2015 and have lodged submissions to the DLTP. One person spoke to their submission.

Response to submissions Use of land

19. The property at 95 Newton Street is occasionally used for events organised by the adjoining commercial business, there is a resource consent for the site to hold summer events which expires in January 2016. The 2012 opposition to the possible disposal was led by those who wished to continue to hold events. However, there is no similar level of opposition in DLTP. The key submissions relate to the desire to keep green spaces in industrial areas and the general opposition to disposal of green space in the city.

20. Other submissions are more general in nature like the one from lan Stevenson, Submission 457, which requests no sale of green space but the submission does not specifically address 95 Newrton Street and Mr Stevenson did not speak to his submission.

Is the land surplus to requirement?

21. The research undertaken by the Council could find no evidence that the land was gifted and that only 1,358m^ of the 8,570m^ property was derived from the Sopor's. A land exchange was carried out, whereby the Soper's received land that was formerly part of Aerodrome Road.

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2-5 June 2015 Tauranga City

22. The Council, as part of the 2012 Property Review, considered the future of this property along with many others situated in Newton Street. The property at 95 Newton Street was held by the Open Space Activity for recreation purposes.

23. In 1998 the Council undertook an Industrial Reserves Review at Mount Maunganui, the Mount Maunganui Management Plan. This plan was prepared in 1998 and was programmed for review in 2012. However, this review has not been carried out yet due to the discussion being held about the future of this land.

24. An assessment was undertaken by the Council in 2012 as to whether this parcel of land at 95 Newton Street was surplus to requirement. That assessment was prepared under the Open Space Level of Service Policy 2010 and the Best Practice Guide to Open Space. The determination in 2012 was that 95 Newton Street was not required for sporting or recreation purposes in this industrial part of Mount Maunganui.

other issues to consider before disposal

25. If the property is to be progressed to disposal the zoning will need to be changed to uplift the value of the site. Any valuation for the disposal of the property will need to show the value of the land as open space and other commercial or industrial value that would be derived if the zoning were changed. Any plan change for this parcel of land could be undertaken in conjunction with other plan change matters to minimise the costs.

26. As a result of analysis to ascertain the availability of land in Mount North suitable for events, a review is be undertaken to determine if some of the land at 95 Newton Street is suitable or necessary for strategic events. This is in light of the adoption of the Major Events Framework. The previous work undertaken suggested that there is no need for open space in this location.

27. Prior to the land being readied for consultation and while offer back research is being undertaken, a new report is to be prepared as to whether some of the land is required for strategic events in this location and if 95 Newton Street is the right location.

28. Should Council wish to proceed with the sale of 95 Newton Street and other similarly zoned properties, then it is recommended that the proposed plan change process to rezone the land is undertaken at the same time as the consultation process for the sale of the land. The hearing processes would differ but the full information will be available to submitters, given that most submitters want to know what the ultimate use of the land will be.

29. This process would also allow Council to properly engage with Iwi under the Recognition of Tanagata Whenua Interests and Aspirations Policy.

30. An additional issue is managing a strip of land approximately ten metres wide, which is held by the New Zealand Transport Agency (NZTA) as an alternative rail corridor to Mt Maunganui. We understand that this corridor is now surplus to NZTA's future plans. The Council would need to discuss the preparedness of NZTA to sell or dispose the land at the same time as Council is undertaking its process. This approach will enable the Council to ensure the most efficient use of the land and maximise the land available for disposal. This strip is shown to the rear of the site as a green line with the hatched yellow line, see plan attached as Attachment C.

PropertySales - 6 - Objective ID: A6286491

Council - Long Term Plan Deliberations

2-5 June 2015 TaurangaCity

Other land 31. Members of the public have made submissions on the general land sale programme

approved in 2012.

32. Overall, many submitters raised the need to review the disposal of open space land and the Council process for declaring open space as surplus to requirement. The disposal of all open space land requires consultation with the public be undertaken either under the Local Government Act or the Reserves Act (for those parcels of land classified as 'recreation reserve').

33. To inform the consultation programme, it is proposed that a strategic review be undertaken of all open space/reserve land, its location, its proximity to future developments and a full cost benefit analysis addressing any opportunities for which the land may be required before being able to be considered surplus to requiremenL

34. It is recommended that any proposed plan change process to rezone open space land, which constitutes a large portion of proposed future land sales, is undertaken prior to, or at the same time as the consultation process for the sale of land.

35. These matters combined lead to the recommendation for a strategic land review of all parcels of land Council is to dispose of. Such a strategic review of the open space disposal programme, would look at rental revenue (current and future), future opportunities, cost of sale and other matters including community interest, which the submissions on the DLTP have shown to be high with respect to open space land. The review would then specify the steps necessary to change the zoning and any other matters of relevance.

Significance and Engagement 36. Under the Significance and Engagement Policv 2014, this matter is of medium

significance as it relates to the sale of land which must follow a specific statutory process, which has been addressed above.

37. It is proposed further consultation be undertaken for the disposal programme to identify the available options to the Council.

Implementation 38. In respect of 95 Newton Street, should the Council wish to proceed to sale, a special

consultative procedure will need to be undertaken and the land will need to be re­zoned.

39. With respect to the other parcels of land, the process is to continue with undertaking a strategic review for all land, with a special focus on land zoned open space reserve.

Attachments No. Title

Confidential Report: Likely Realisable Values of Proposed Disposals Objective: ID: A6285507

B Image of location of 95 Newton Street Objective ID: A6285515

PropertySales - 7 - Objective ID: A6286491

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Objective ID: A6285515

Council Zoning under City Plan for 95 Newton Street Objective ID: A6285513

Signatories Authors Setareh Masoud-Ansari - Manger: Transformation and Property Advisory

Authorisers Jaine Lovell-Gadd - General Manager: Organisational Services

PropertySales Objective ID: A6286491

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Information shown on this plan Is indicative only. Tauranga City Council accepts no liability for Its accuracy and It is your responsibility to ensure that the data contained herein is appropriate and applicable to the end use intended. Cadastral Information is sourced from the LINZ Data Service http://data.llnz.govt.nz/layer/772-nz-primary-parcels/. Crown Copyright Reserved.

O

Tauranga City Plan Planning Maps Key (1 of 2)

Jurisdiction 1) Th» mtoi of ttib Clt/ Ptan only apply tandv^ord of Moan High Wafer Springs. 2) Tho Bay ol Pianty Re^onal Counci h tha comonf aulhority fof octivftiei leoword of Mean High Watsr Springs and for activitlos on the surface of wateif?odies. 3) The fne of Ifw coast shown on Ihb map reprasenb the poshion of f.^ean High Water Sptngs basedon aeriad mapping 12007). It does rsot necessarily mpresent ttse cunent posittan of f.tean High Water Springs.

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Planning Zones

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City Centre Waterfront Subzones

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City L M n g -Mixed Use (CU^U)

Ex K K M srl « • »« • I ' ' ' ' ' I > . < . « ] c i t y Uving - Mixed Use

K • H H {CLMR) 19 metre max. heigtit

City Uving - Residential (CLR) 9 metre max. heigtit

City Uving -Residential (CLR)

Suburtian Residential

Residential Large Lot

High Density Residential

Planning Zones (continue) Planning Zpng? (continue)

Port Industry

Tauiiko Industry

Tauriko Commercia l

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Active Open Space

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Wairakei Town Centre (Core)

Wairakei Town Centre (Fringe)

Neighbourt iood Centre (Wairakei)

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High Rise Pton Area

Medium Rise Plan Area

Ftood Hazard Ptan Area

Special Ecological Area (Category 1)

Special Ecotogicai Area (Categoty 2)

Outstanding Natural Features a n d Landscapes Plan Area

important Amenity Landscapes Ptan Area

Kiwi Rail Reverse SenslHvity Plan Area

NZTA Reverse Sensitivity Plan Area

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Tauranga City Plan Planning Maps Key (2 of 2)

1) The rules of thh Ctty Plan onty oppty kmdwcvd or M^on High Wotw ^pthgs. 2) 1he Boy of Plenly Rec^onal Counci b lha consent autfrarlty for acttvlthK s«aword of Mtton Nigh Wator Sprlngt orkd (or octtvttiss on ths surface of woloftxxiies. S) Ttx* trm of tfw coast if>own on tNt mop represents the position of Maon High woter Springs basad on oerld nnapplng (2007j. tt does nof rwcasstvHy reprasant Ifw currant podtton of Mean High Watar Springi. 4) The Boy of Plenty Regional Cour>cl OmJki ba coniuftad l:>afora ur>der>aklna any oclMty h h e vfdntly of Mean High Water to astobSsh t w actual Ine of Mean High Water Spdngc.

Other Symbols

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Legal Parcel Boundary as at Date Printed on Map

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Sub Zone Boundary

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£ Territorial Authority Boundary

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Significant Maori Areas (Refer Chapter 7. Appendix 78: Register ot Significant Maori Areas!

Significant Archaelogical Areas (Rerer Chapter 7. Appendic 70: Reo&fer of Signincant Archaeologicai Areas}

Te Tumu Archaeological Martagement Areas (Refer Chopfer 7, Appendix 7E: 7e Tumu Afchaeologk^ai Management Areas}

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Proposed Designated Site Boundaty (ottier than Road Designation)

Proposed Designated Road or Proposed Road Widening

^ Proposed Designated Site Number (Refer Appendix 1 OC:Designattons)

Requiring Auttiority Abbreviations

Designations

A / Designated Sile Boundary (ottier than Road Designation)

Designated Road or Road Widening

Designated Site Number (Refer Appendix 1 OCiDesignotions)

c

MU

D l

MD

MS

NP

NZTA

PC

RC

TW

WB

CH

Tauranga City Counci l

Ministry for Courts

Deparfmenf of Corrections

Ministry of Defence

Mlnlslry of Education

Ministry ot Health

MeleonQk>gk:al Sanrice of New Zealand

New Zealand Po lce

New Zeakind Transport Agency

PoweiCo Limited

New Zealand Railways Coiporat ion

Telecom New Zeaksnd Lfd a n d Telecom Mobi le Communicat ions Ltd

Transpower New Zeaksnd Umited

Westem Bay of PlenfY Disfrict Counci l

Chorus Lkntied

Ottier Abbreviations

AW Accasxv/oy - Zoned Passive Opan Space

SL Service Lane

C M . A Coastal Marine Area covered by Regional Coastal Envlronmant Ptan