KAIKOHE-HOKIANGA COMMUNITY BOARD 01 MARCH 2017 UPDATE SURPLUS PROPERTY PROJECT Property Services, Rob Koops Date of report: 23 January 2016

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1 MEETING: Name of item: Author: KAIKOHE-HOKIANGA COMMUNITY BOARD 01 MARCH 2017 UPDATE SURPLUS PROPERTY PROJECT Property Services, Rob Koops Date of report: 23 January 2016 Document number: Executive Summary A Item: 6.1 The purpose of the report is to inform the Community Board of the status of the Surplus Property Project and to outline the procedure that is being followed to have properties declared surplus and brought to market. Recommendation THAT the report Update Surplus Property Project be reviewed and Council staff be advised of properties that are considered potentially surplus. 1) Background: In 2008 Council decided on a project to actively identify properties that may be surplus to requirements and could be offered to the Office of Treaty Settlements (OTS) or disposed of to generate funds for other strategic needs. In a database containing approximately 1000 Council owned property parcels was developed. In 2010 the Surplus Property Process (Attachment 1) was presented to the Audit and Finance Committee. Property with a rateable value of $10,000 or less was automatically excluded from the process. A total of 124 properties were initially identified as potentially surplus to requirements and have been further investigated to determine how the land was obtained, whether subject to Reserves Act or Public Works Act (PWA) or any other impediments that affect clear title. Of the properties investigated 42 have been considered for OTS and 82 for disposal. Of the 82 considered for disposal 63 properties were not declared surplus for the following reasons: - Land not owned by FNDC or Ownership reverts to Crown: 17 - No title / subject to PWA offer back: 9 - Other (ie. subject to lease/license to occupy, historical/cultural issues, etc): 15 - Not supported by Council/Community Board: 22 The balance of 19 properties have been declared surplus with the following status: - Sold 10 - On the market: 2 - Leased: 2 - Awaiting reserve status revocation / District Plan change: 5 As a result of the relatively low number of properties FNDC actually managed to dispose off, the relatively high cost of bringing a property to market and the fairly negative feedback on the disposal of property assets from past Community Boards the Document number A Page 1 of 3

2 approach Council staff has adopted in recent years has been reactive. Only if a request from a Community Board or from members of the public was received was the Surplus Property Process initiated. 2) Discussion and options Declaring property surplus to requirements before it can be disposed off is subject to appropriate consultation with the local community concerned. This is particularly relevant for properties that have reserve status and/or require a District Plan change. Community Boards are the first and foremost point of contact between council staff and the community. Feedback from the respective Boards has resulted in a significant number of potentially saleable properties being withdrawn from the project. There appears renewed interest in the possible sale of Council owned properties and Community Boards are encouraged to bring potentially surplus properties to the attention of Council staff. Council staff will assess the feasibility of bringing property to market successfully and then work through the process and legal requirements that need to be taken into consideration before property can be disposed off. It should be noted that the process to bring a property to market can be lengthy and the outcome uncertain. It is therefore recommended to separate decision making around disposing of property from the allocation of sales proceeds against future projects. 3) Financial Implications and budgetary provisions The historical investigation into the background of the property, report writing, public notification and dealing with submissions, notices, bringing the property to market for tender, etc. all take time and cost money. There is no specific budget for this and the costs are deducted from any sale proceeds before allocation of funds for future use. In June 2010 the Audit and Finance Committee resolved that sale proceeds of property disposals should be retained within in the ward in which the property is located. Depending on the use, some of the properties on the list that have been identified as potentially surplus to requirements are regularly maintained (mowing mainly). For the Kaikohe-Hokianga Community Board the approximate cost related to these properties is $12, ) Recommendation That the Community Board reviews the list of Properties reviewed as potentially surplus to requirements (Attachment 2) and advices Council staff of any properties either on the list or in their ward that should be (re-) considered for disposal by Council. Manager; Janice Smith - Chief Financial Officer Attachment 1: Surplus Property Process - Document number A Attachment 2: Properties Reviewed as Potentially Surplus - Document number A Document number A Page 2 of 3

3 Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga. 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions. Relationship with existing policies and Community outcomes. Possible implications for the relationship of Māori and their culture and traditions with their ancestral land, water, site, waahi tapu, valued flora and fauna, and other taonga. Views or preferences of persons likely to be affected by, or to have an interest in the matter, including persons with disabilities, children and older persons. Does the issue, proposal, decision or other matter have a high degree of significance or engagement as determined under the Council's Policy #2124? If the matter has a Community rather than a District wide relevance has the Community Board's views been sought? Financial Implications and Budgetary Provision. Chief Financial Officer review LTP Page 342 Priority 4 Will be determined through consultation Will be determined through consultation None Community Board recommendation will be sought No budget and the costs are deducted from any sale proceeds before allocation of funds The Chief Financial Officer has reviewed this report. Document number A Page 3 of 3

4 Page 1 of 3 ITEM : 10.1 TO FROM WRITER ISSUE : AUDIT & FINANCE COMMITTEE : ACTING GM: FINANCE & TREASURY : JANICE SMITH, ACTING GM: FINANCE & TREASURY : SURPLUS PROPERTY PROCESS Executive Summary: The purpose of this report is to advise the Audit & Finance Committee of the process that would be followed to identify properties that may be surplus to requirements. It concludes with the recommendation that the Committee receives the report. REPORT: 1. Background At the Audit & Finance Committee of 30 June 2010, the Committee requested an explanation of process that would be followed for identifying properties that may be surplus to requirements and made available for sale. 2. Revised Process to Review Property Potentially Surplus to Council Requirements 1) Finance & Treasury department identify properties from database that may be surplus based on the following criteria: a) Property has no strategic purpose; b) Property is not needed for any other Council activity; c) Property with clear title would be investigated first; 2) Each department assesses the proposed properties against: a) Own use and future requirements; b) Far North District Plan; c) LTCCP; d) Waipapa / Kerikeri Structure Plan; Each department will formally sign off and release property for further investigation. 3) File is reviewed by Phil Grimshaw, Economic Development & Maori Engagement Manager to determine whether a Maori Reference Group needs to be involved; 4) Property details will be sent to Historic Places Trust to review and identify any historical or cultural issues there may be in relation to the property. 5) Finance & Treasury department reports to relevant Community Board as follows: i) A confidential preview of properties potentially surplus requesting feedback of known community issues or other interested parties that should be C:\Documents and Settings\rkoops\Objhome\Objects\10 1 Surplus Property Process.doc :15 rkoops Document number A Page 1 of 3

5 Page 2 of 3 consulted. Individual site visits are not required (unless the Chair wishes to do so) and individual consultation is not expected. Notification of any interest within the community will be followed up by staff and; ii) Feedback is investigated and followed up by staff and; iii) Finance & Treasury department (or its contractor) undertakes historical investigations to determine: a. How land was obtained b. Whether subject to Reserves Act c. Whether subject to Public Works Act d. Whether there are any other legal requirements attached to the property that affect clear title and the ability to sell. iv) Depending on outcome: a) A full public report to the relevant Community Board is prepared for next Community Board meeting; b) An agenda preview with Community Board chairperson takes place to brief on any issues; c) Public notification that the properties are under review goes in local papers; d) Community Board makes its recommendations to Council on the properties under review, based on the feedback gathered. 6) File reviewed by Legal department to advise on legal issues 7) Finance & Treasury department report to Council. If resolution is passed to declare surplus: a) and the property is subject to the Reserves Act Finance & Treasury department initiates Reserve Revocation process (described separately) b) or if subject to Public Works Act 1981 the property is offered back to former owner c) or if subject to other legal restrictions preventing sale, these are investigated and any offer back is made if that is required; otherwise 8) Property is put up for sale on the open market. 4. Financial Implications The public consultation, notices and changes to title will all incur cost. There is no specific budget for this and the costs are normally deducted from any sale proceeds before allocation of funds for future use. 5. Implications for Māori There are specific consultation processes provided in the Reserves Act 1977 to allow for reserve revocation. The relevant statutory processes and Department of Conservation requirements include consultation with Iwi. 6. Community Board Views C:\Documents and Settings\rkoops\Objhome\Objects\10 1 Surplus Property Process.doc :15 rkoops Document number A Page 2 of 3

6 Page 3 of 3 This section is not applicable therefore the relevant Community Board s views have not been sought. 7. Legislative Compliance Council has to comply with the relevant legislation in respect of Reserves under the Reserves Act RECOMMENDATION: That the report, Surplus Property Process, be received. Janice Smith ACTING GM: FINANCE & TREASURY C:\Documents and Settings\rkoops\Objhome\Objects\10 1 Surplus Property Process.doc :15 rkoops Document number A Page 3 of 3

7 Properties reviewed as potentially surplus to requirements (excluding OTS). Address and legal description Land status (at outset) Comments SOLD / LEASED 61 State Highway 1, Moerewa (Lot 4 DP 41547) Freehold title SOLD 9 Carey Rd, Kaikohe (Lot 9 DP 73952) Freehold SOLD 1732 SH 10, Waipapa (Pt Lot 1 DP 29895) SOLD 23 Terry Crs, Kaitaia (Lot 15 DP ) Freehold SOLD 38 Paradise Rd, Coopers Beach (Lot 24 DP Fee simple SOLD 75455) Fern Flat Road, Peria (Lot 1 DP 50017, Lot 1) Fee simple SOLD 78 Fairlie Cres (Lot 114 DP 58962) Fee simple SOLD 282 Larmer Road SOLD Waterfront Drive, Mangonui (Lot 2 DP Fee Simple SOLD and Lot 4 DP 56867) Redan Road, Section 79 Block V Takahue SD Fee simple SOLD (Bell/FNHL) Purdy Street, Kaikohe (Pt Lot 3 DP 39389) Reserve (Recreation) Leased to Bunnings and NAHC SURPLUS IN PROGRESS Oneroa Rd, Russell (Lot 6 DP 55863) Fee simple Declared surplus - PWA offer back declined On the market 3 Taumatawiwi St, Opononi (Lot 9 DP ) Fee simple Declared surplus Covenant removed On the market 53 Hihi Road Mangonui (Lot 10 DP 53180) Reserve (Recreation) Declared surplus Reserve revocation (with Legal) and Zoning change required 21 Doubtless Bay Drive, Karikari Peninsula (Lot Reserve (Recreation) Declared Surplus - (Reserve revocation (with Legal) and DP zoning 12 DP 69243) Clansman Reserve Ruato Road, Whangaroa (Lot 1 DP ) Reserve (Recreation) change required Declared Surplus. Reserve Revocation completed. Awaiting District Plan change from Recreation to Coastal Residential NOT SUPPORTED NCB/THCB 1 Matthews Ave, Kaitaia (Lot 6 DP 20117) Fee Simple DO NOT SELL! Purchased by FNDC in 2004 to be added to Matthews Ave Reserve 14 Kohukohu Street, Kaitaia (Lot 29 DP Reserve (Recreation) Not supported by NCB (June 2010) Council properties reviewed as at 22/09/2016 Document number A Page 1 of 6

8 80264) Grigg Street, Kaitaia (Lot 73 DP 83778) Reserve (Recreation) Not supported by NCB (June 2010) Pukenui Hill, Houhora (S1 SO 6322) Fee Simple Land transferred back to FNDC (was owned by FNHL) Strong objections from locals to sell. Rental income $18k p/a (11% yield on 2010 valuation) NOT SUPPORTED WCB/KHCB 17 Broadway, Kaikohe (Lot 1 DP 28926) Reserve (Recreation) NO LONGER surplus to requirements (WCB objected) 6 Clifford St, Kaikohe (Lot 7 DP 30455) Freehold NO LONGER surplus to requirements (WCB objected) 2 Enterprise St, Kaikohe (Lot 1 DP 73952) Freehold NO LONGER surplus to requirements (WCB objected) 308 State Highway 12, Omapere (Lot 2 DP 35077) Reserve (Recreation) Not supported by WCB (June 2010) Withdrawn from process (August 2010) Mangakahia Road, Kaikohe (Lot 14 DP 38215) Reserve (Recreation) Not supported by WCB (June 2010) NOT SUPPORTED ECB/BOIWCB 92 Doves Bay Road, Kerikeri (Lot 12 DP 53128) Freehold Community pressure prevented sale - now Recreation Reserve Butler Road, Kerikeri (Lot 1 DP ) Reserve (Recreation) Council declared surplus 2008, not supported by ECB 16 Kakapu Road, Russell (Lot 1 DP ) Reserve (Recreation) Actively used according to ECB (May 2010 no resolution was passed) McIntyre Road, Kawakawa (Lot 1 DP 16502) Freehold NOT surplus ECB doesn t support. Spinnaker Point, Haruru (Lot 141 DP ) Tauranga Bay Beach Road, Tauranga Bay (Lot 9 DP 66947) 11 Rarere Terace, Kerikeri (Lot 3 DP ) 25 Rowsell Lane, Kerikeri (Lot 12 DP 58050) Held for Water Supply purposes Reserve (Recreation) Reserve (Utility) Subject to PWA offer back Strategic link to Esplanade reserve and neighbours have bought on assumption this would always be green space according to ECB (May 2010 no resolution was passed). Massive public response against selling this reserve (see RFS ). ECB not supportive (May 2010 no resolution was passed). Reserve (Recreation) Strong public response against selling at ECB meeting May 2010 no resolution passed Reserve (Recreation) Strong public response against selling at ECB meeting May 2010 no resolution passed Site has items of cultural significance. 2 & 4 James Clendon Place, Russell (Lot Reserve (Recreation) Strong public response against selling at ECB meeting May 2010 Council properties reviewed as at 22/09/2016 Document number A Page 2 of 6

9 12 DP & Lot 16 DP 65061) no resolution passed 23 Reinga Road, Kerikeri (Lot 16 DP 59246) Reserve (Recreation) Strong public response against selling at ECB meeting May 2010 no resolution passed See also 77 Reinga Road Reserve (Recreation) Adjoins 23 Reinga Rd and likely to attract similar public response. 77 Reinga Road, Kerikeri (Lot 2 DP & Lot ) Hope Avenue, Russell (Lot 67 DP 16246) Reserve (Municipal purpose) Strong public response against selling at ECB meeting May 2010 no resolution passed Sir James Henare Place, Moerewa (Lot 35 Reserve (Recreation) ECB suggested could be suitable for social housing (May 2010 no DP 16531) resolution passed) Redwood at Kerikeri Road & Hawkins Crs Reserve (Road and Plantation) Community wants to retain (Lot 4 DP Lot 39 & 43 DP 84118) 7-9 Butler Road Kerikeri (Lot 2 DP ) Fee simple Declared surplus Subject to JBC Car Park License Land corridor between Kerikeri Inlet Rd & Rarere Tce (Lot 1 DP ) Fee Simple Held in trust for future peninsular access Road Subject to Right of Way easement to adjoining properties. GIFTED / UN-ECONOMICAL SH 1, Mangamuka (Lot 1 DP 45474) Freehold If declared surplus should be gifted back to former owner (S40(2)(d) PWA81) Kawakawa Memorial Library, 3 Wynyard Street, Reserve (Local Purpose Community If declared surplus should be gifted back to former owner (S40(2)(d) Kawakawa ( Part Lot 36 Deeds Plan W46) Matthews Mission Bush Public Reserve, Church Road, Kaitaia (Lot 4 DP 36282) Facility) Reserve ((Public) PWA81) If declared surplus should be gifted back to former owner (S40(2)(d) PWA81) Gorge Road, Waimamaku (Section 34, Block IX, Waoku Survey District) Reserve (Public Pound), Value 2008 $16,000 not worth the effort. NOT OWNED BY FNDC Waiere Road, Okaihau (Allotment 49 Parish of Reserve (Recreation) Ownership / proceeds of sale will revert to Crown Council properties reviewed as at 22/09/2016 Document number A Page 3 of 6

10 Okaihau) McIntyre Road, Kawakawa (Allotment 133 PSH of Kawakawa) (Allotment 134 PSH of Kawakawa) (Allotment 135 PSH of Kawakawa) (Allotment 212 PSH of Kawakawa) (Allotment 213 PSH of Kawakawa) (Allotment 220 PSH of Kawakawa) State Highway 1 Kawakawa (Pt Section 57 BLK XVI Kawakawa SD) State Highway 1 Hukerenui (Section 77 BLK V Hukerenui SD) 120 Florance Avenue, Russell 0220 (Lot 65 DP 16246) 36 Empire Street, Kaitaia (Lot 254 DP 12724) Tauranga Bay Beach Road, Tauranga Bay (Lot 45 DP 66947) Reserve (Water Conservation) Reserve (Local Purpose Waste Disposal) Reserve (for Public Buildings) Reserve (Local Purpose Cemetery) Held for River Control Purposes Reserve (Recreation) Ownership / proceeds of sale will revert to Crown Ownership / proceeds of sale will revert to Crown No title Ownership / proceeds of sale will revert to Crown No title Ownership / proceeds of sale will revert to Crown Not owned by FNDC (Crown land). Not owned by FNDC (Crown land) Church Road, Kaitaia (Lot 2 DP 36828) Reserve (Scenic) Not owned by FNDC (Crown land) 3 de Thierry Street, Rawene (Part Section Reserve (Recreation) Not owned by FNDC (Crown land). 106 to111 suburbs of Rawene) Crene Road, Takahue (Section 4A Blk XI Reserve (Conservation) Not owned by FNDC (Crown land). Takahue SD) 129A-129C Mangatawa Road, Otaua Maori Freehold land Not Owned by FNDC (Mauri land) (Kohatutaka 6A10C2A) 83 State Highway 1, Awanui (Part Old Land Claim No 159 Lot 11 Deeds plan H46) Fee Simple Land not owned by FNDC (but may be declared abandoned). Requires Court involvement and unlikely to generate funds for FNDC other than outstanding rates (3yr max). PWA OFFER BACK Paua Road, Kaitaia (Lot DP 91881) Fee simple Subject to PWA offer back for $1.00 Puketi Road, Okaihau (Pt OLC1, DP20922) Fee simple Subject to PWA offer back Value 2008 $16,000 not worth the effort. 10 Commercial Street, Kawakawa (Part Lot 6 Fee simple Subject to PWA offer back. Council properties reviewed as at 22/09/2016 Document number A Page 4 of 6

11 DP 39772) Mangakahia Road, Kaikohe (Pt Otuhi 1C1 Block, Lot 14 DP 38415) Mangakahia Road, Kaikohe. Pt Motatau 5E22 Waiare Road, Omapere (Pt/OLC1, Pt Allotment 25 PSH of Omapere) 14 Dominion Road, Kaitaia (Part Lot 1 DP & Part Lot 2 DP 12172) Kaeo Cemetery, Cemetery Road, Kaeo (Part Lot 28 DP 38451) Freehold Vested as Gravel-pit Held for the purpose of installing a water pump station. Held for rubbish dump. Fee Simple Fee Simple Adjoining land owner expressed interest. Due to low value and potential cost to go through the entire process it was decided to lease to adjoining landowner. Referred back to SH. Subject to PWA offer back. Further investigation to locate owners required. Requires IAM-Roading approval due to gravel-pit. TS reviewing quarry requirements FNDC. Subject to PWA offer back. No title. Subject to PWA offer back. No title Subject to PWA offer back. Road has been stopped. SH advices land too swampy for any development. Subject to PWA offer back. OTHER Redan Road Kaiataia (Lot 3 DP 74238) Reserve (Road) Got mixed up with S79 Blck V Takahue SD. Provides thorough fare Status unclear. 167 Hautapu Road (Allotment 167 PSH of Kawakawa) State Highway 1, Mangamuka (Lot 1 DP45474) Totara North Road, Waihapa Bay, Totara North (Lot 3 DP 93659) Hone Heke Road, Kerikeri (Lot 14 DP & Lot 3 DP ) Fee Simple (Papatahi water supply). Fee Simple Reserve (Esplanade) Reserve (Recreation) Exempt from PWA offer back. Would require subdividing of area with water storage tanks. Withdrawn from process, IAM does not support surplus. NO Land Status report or other info Unlikely Esplanade reserves would be declared surplus by Council. Needs boundary adjustment/subdivision to establish access to Esplanade reserve. Then Reserve revocation and re-zoning has to take place. Possible repeat of 25 Rowsell Lane? 409 Opito Bay Road, Kerikeri (Lot 48 DP Reserve (Recreation) 47619) 112 Allen Bell Drive Recreation Reserve. Reserve (Recreation) Has huge Moreton Fig tree on it (although not on schedule of Council properties reviewed as at 22/09/2016 Document number A Page 5 of 6

12 Kaitaia (Lot 34 DP ) Fleet Street, (Commercial Street Reserve) Kawakawa ( Lot 1 DP 80789) Kawakawa Cemetery Whiteman Road, Kawakawa (S13 + S14, Suburbs of Waiomio). Whangaroa Metal Quarry, 456 Whangaroa Road, Whangaroa (Part Totara 1 Block) Leigh Street, Kaeo - Former Kaeo Post Office (S1 SO 63119) Reserve (Recreation) S13 Reserve (Cemetery) S14 Fee Simple No title Taken under PWA for Metal Quarry Fee Simple notable trees) Part of the property subject to PWA offer back. Fleet Street is unformed. Property land locked and prone to flooding. Could possibly be amalgamated with part Lot 2 DP37955 then sold. Both subject to Burial and cremations Act S13 Ownership will revert back to Crown. S14 Partially used for Cemetery; subdivision required. NOT subject to PWA offer back. No title.. Part leased to Pacific Marine Farms Ltd (Oyster farmers). FNDC Library & Service Centre ground floor. Short term leases 1 st floor. Subject to State-Owned Enterprise Act 1986 and Conservation Act Heke Street, Kaikohe (Pt Lot 51 Plan W43) Fee Simple Land was offered for sale to Kohanga Reo (they own the building on the land) in 2003 for GV. In July 2010 they expressed interest to purchase at the 2003 GV but were told they could buy at current GV of $18k then Council decided $25k. No further interest. Perehipe Reserve Reserve (Recreation) Not for sale. Requested for lease by Whatuwhiwhi Holiday Park. They have to liaise with Iwi. Council properties reviewed as at 22/09/2016 Document number A Page 6 of 6