Report to COUNCIL for decision

Transcription

1 09/612 Subject: Prepared By: Gaddums Hill Reserve Leasing Decisions Angus Glengarry (Community Property Officer) Meeting Date: 25 November 2009 Report to COUNCIL for decision SUMMARY The lease for the Gisborne Pistol Club s occupation of Gaddums Hill Reserve expired on 30 June It is proposed that Council enters into a new lease agreement with the club. The other occupant of the reserve, CyberZone Paintball, wishes to assign its lease which expires 30 September Rather than assigning a lease which is close to expiring, it is proposed that Council enters into a lease agreement with a new operator to formalise the occupation of Council reserve. This issue needs to be decided by Council, as staff do not have the delegated authority to enter into lease agreements. RECOMMENDATIONS That the Council 1. receives the report. 2. agrees to release Messrs Andrew and Hermon from the existing lease agreement. 3. agrees to enter into a new lease agreement with Mr Taiapa for part of Sections 3, 4 & 5 Block IV Turanganui Survey District. 4. agrees to a lease term of five years with two five year rights of renewal expiring 31 November The annual rental shall be $435 excluding GST, to be reviewed every five years in accordance with the GDC Rental Policy. 5. agrees to enter into a new lease agreement with the Gisborne Pistol Club Incorporated for part of Sections 3,4 & 5 Block IV Turanganui Survey District. 6. agrees to a lease term of 10 years with two 10 year rights of renewal expiring 31 November The annual rental shall be $265 excluding GST, to be reviewed every five years in accordance with the GDC Rental Policy. Angus Glengarry Community Property Officer Peter Higgs Engineering & Works Manager Page 1 of 10

2 1. BACKGROUND 1.1 Gisborne Pistol Club The club range was relocated from Matokitoki Valley to Gaddums Hill Reserve in Over the years the club has developed the site to keep pace with increasing safety requirements. The club has four approved ranges, a club room, toilets and various sheltered shooting positions catering for three main disciplines of pistol shooting. Some of the members are of a national standard and regularly shoot away in other centres. The club has developed the site to a standard whereby it is now in a position to invite other clubs to visit for weekend shoots. The police often use the site during the week for armed offender training. The primary objectives of the club are to provide facilities that allow members to safely shoot pistols, practice for competitions and to promote firearms safety. The club s lease expired 30 June 2009 and it is proposed that Council enters into a new lease agreement with the club. The term of the lease is for 10 years with two 10 year rights of renewal which is to be reviewed every five years. 1.2 Paintball Activity On 1 October 2001, the Council entered into a 10 year lease with Messrs Andrew and Hermon who had formed a partnership trading as CyberZone. The partnership dissolved in 2006 when Mr Andrew moved overseas. Mr Hermon continued paying the annual rental so the Gisborne Paintball Club could continue to operate. Approximately 18 months ago, Mr Hermon was approached by club member Mr Taiapa who offered to take over the lease agreement. Mr Taiapa has since been running the paintball operation and paying the site rental. The club meets the first Sunday of each month and often hosts games with the Wairoa club. The lease to CyberZone expires 30 September Rather than assigning a lease which is close to expiring, it is proposed that Council enters into a new lease agreement to formalise the occupation of Council reserve. Refer to Appendix 1 for a site plan of the leased areas. 2. DISCUSSION AND OPTIONS The following options have been considered: Status quo and let the current occupants continue to operate without a formal agreement in place. This option has been rejected as section 40 of the Reserves Act 1977 requires the Council to administer, manage and control in accordance with the provisions of the Act. To allow occupation by an organisation without the controls of a lease could lead to a breach of this obligation. Do not renew the lease agreements and have the occupants seek an alternative site. The topography of reserve makes for a natural shooting range and the Pistol Club would be hard pressed to find a suitable alternative site. The club has invested considerably in developing the site and the facilities would not be easily transferred. The police would have to travel to Napier for armed offender training until an alternative site could be found as there is no other certified pistol range in the Gisborne region. Page 2 of 10

3 Although the reserve could be used for grazing under the Reserves Act 1977, it is not considered the highest and best use of the land. If it was to be grazed it would deny the community the opportunity to take part paintballing and pistol shooting until an alternative site could be found. This option has not been considered for the reasons above. Have a registered valuer ascertain a market rent for the sites and enter into new agreements at a commercial level. The Gisborne Pistol Club This option has been discounted as the Pistol Club s financial statements 1 clearly indicate that the club is not operating as a commercial activity. It would therefore be inappropriate to apply strict market principles in this instance. Paintball Club The number of players at club day ranges from 8-20 participants. It costs each player $20 per hundred shoots and includes gun hire, gas and safety mask. This is half the price of commercial operators. The club aims to cover the site rental, production costs and maintenance of equipment. The primary driver for the introduction of a lease is statutory compliance with the Reserves Act Enter into new lease agreement and determine the annual rental in accordance with GDC Rental Policy. This option is considered the most practical solution and is consistent with other recent leasing decisions for occupants of Council Reserve. The Council has a statutory obligation to comply with the Reserves Act The granting of new leases puts in place controls and measures that allow the Council to properly manage tenants on reserve in accordance with the Council s obligations under the Act. A lease would provide the club s with security of tenure and allow them to plan with certainty over the long term. 3. SIGNIFICANCE The leasing decisions have been assessed against the criteria and have been deemed not to be decisions of significance. 4. CONSULTATION The proposed lease agreements were publicity notified in the Gisborne Herald on Wednesday, 21 October No written submissions were received for or against the proposed lease agreement. 5. COMMUNITY OUTCOMES The leasing of Council land for use as shooting range and Paintball Club contributes to the community s wellbeing through indirect investment in sports and recreation. This is consistent with the community s primary outcome for a Healthy Tairāwhiti. 6. LEVELS OF SERVICE The proposed lease agreement will have no impact on levels of service. 1 Refer to Appendix 2 Page 3 of 10

4 7. FINANCIAL The lease conditions place all of the outgoings onto the occupants. This includes indemnity insurance fees, utility charges, building and grounds maintenance. The income from these leases is an operational income, which is used to reduce costs associated with Council s parks and reserves. 8. LEGAL 8.1 The Gisborne Pistol Club The range is certified by Pistol NZ. The certification is peer reviewed by the NZ Army and then needs to be approved by the Commissioner of Police pursuant to r.22 (1)(a) of the Arms Regulations The club receives a copy of the range standing orders which every user must comply with. The height of the backstop (banks at the end of the range) restricts the calibre of bullet up to.223 which is the calibre of rifle the police use. 8.2 Paintball Club The Paintball Club is not registered under the Incorporated Societies Act 1908 and thus has no legal status. The lease would have to be in the name of Mr Taiapa making him personally liable under the lease. The Council would also require a guarantor. The legal description is hectares more or less being sections 3, 4 and 5 Block IV Turanganui Survey District. Gaddums Hill Reserve was vested as Recreation Reserve on 5 March 1981 and subject to the provisions of the Reserves Act The Council may enter into a lease agreement with the clubs pursuant to section 54 of the Reserves Act POLICY Where a leasing proposal is required to be approved by Council, such as the leasing of reserves, the report is to include the results of applying the GDC Rental Policy. The ground rent has been calculated in accordance with the policy on the basis that the activities are non-commercial. The Paintball Club has not received the social discounts available under the policy as the club is not and incorporated society. The leasing of Recreation Reserve for sporting purposes is consistent with the Reserves Act 1977, the LTCCP, the Annual Plan, the Gaddums Hill Reserve Management Plan and Council Policies. The options have been considered, together with the legal and financial implications, and there is nothing to impede the Council from entering into new lease agreements. 10. OTHER CONSIDERATIONS 10.1 Noise control The Pistol Club s activity was not included in the Gaddums Hill Reserve Management Plan 2 at the time the lease was drafted in The activity was deemed to be a discretionary under the Proposed Gisborne District Combined Regional Land and District Plan and required resource consent. The club was granted a retrospective consent to operate in July 2001 pursuant to Section 88 of the Resource Management Act Approved by the Cook County Council 24 November 1983 Page 4 of 10

5 The resource consent has a condition stating that the average maximum noise level (L10) of 55 dba should not be exceeded between hours. Compliance with these noise levels is from the notional boundary which is within 20 m of any side of a dwelling or the legal boundary where this is closer. When consent was granted the nearest house was over 1 km away, however, the land adjacent to the range has since been subdivided. The Pistol Club supported the consent application from the developer, Eagle Eye Developments, on the proviso that the developer increases the height of the wooden ricochet wall. This is a gentleman s agreement and subject to the sale of section 3. The purpose of the wall was to improve the site safety and mitigate the noise from the activity. The wall has yet to be altered and its effectiveness as a noise mitigation measure has not been tested. The proposed lease will have a clause stating that the lessee shall at all times comply with the terms and conditions of the resource consent. The lease shall be more restrictive than the consent with the hours of operation limited to 7.00 a.m. to 7.00 p.m. on weekdays and from 8.00 a.m. to 9.00 p.m. on weekends. In the future, as the area develops and houses are constructed closer to the range, the club may have to apply for a variation to its consent if its activity can no longer comply with the maximum noise levels contained within the resource consent. If and when this happens the neighbours will have an opportunity to be involved as affected parties. 11. APPENDICES Appendix 1 : Gaddums Hill Reserve Site Plan Appendix 2 : The Gisborne Pistol Club s Financial Statements 3 Refer to Appendix 1 for the location of the section Page 5 of 10

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