ROTORUA LAKES COUNCIL

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1 1 Strategy, Policy and Finance Committee Mayor Chairperson and Members STRATEGY, POLICY AND FINANCE COMMITTEE ROTORUA LAKES COUNCIL File No: \02 RDC PROPOSED LAND EXCHANGE OFF PERERIKA STREET Report prepared by: Robert Atkinson, Open Spaces Operations Advisor Report reviewed by: Rob Pitkethley, Sport and Recreation Manager Report approved by: Geoff Williams, Chief Executive 1. PURPOSE The purpose of this report is to obtain Council s endorsement for an exchange of land between Pukeroa Oruawhata Trust and the Rotorua Lakes Council to reduce fragmentation for both parties of land around the historic Town Belt Reserve and Railway Corridor. 2. RECOMMENDATION 6: 1. That the report Proposed land exchange off Pererika Street be received. 2. That the committee recommends to Council to: (i) agree for the exchange of one lot of 18,908m 2 of Townbelt Reserve and three lots totalling 2,630m 2 of Road Reserve, for one lot of 12,045m 2 of land between Amohau Street and Pererika Street being part of Section 1 SO , (ii) agree to subsequently reclassifying the exchanged land as Local Purpose (Community) Reserve as per the Reserves Act 1977, (iii) agree to the granting of a lease to St John Ambulance Service over a portion of such exchanged land for a period of twenty years, (iv) agree to the granting of an easement across the reserve to permit emergency vehicle access to Amohau Street subject to approval being granted for such access from New Zealand Transport Authority, (v) delegate to the CEO and COO to negotiate terms of agreements for (iii) and (iv) 3. That this report be made publicly available at the start of the public consultation process. 4. That the minutes relating to this item be made publicly available at the start of the public consultation process.

2 2 Strategy, Policy and Finance Committee 3. BACKGROUND The main areas of land involved in this proposal were historically sections of the Town Belt Reserve which was land gifted to the Crown as part of the Fenton Agreement. Parts of the reserve were partitioned off for Railway purposes in the 1920 s and once the Railway was uplifted, these railway areas of land were vested back to Pukeroa Oruawhata Trust on behalf of Ngati Whakaue in Sections of the Town Belt that have remained reserve are vested in the Crown with Council responsible for the administration and management of the reserve on a day to day basis As part of the planning for the Victoria Street Arterial route, the Council sought to utilise a section of this Pukeroa Oruawhata Trust s ex-railway corridor through exchanging the Trust s land with a portion of reserve land further west on Pererika Street. Now that the Victoria Street Arterial is no longer going ahead, Council has identified initiatives that would be of benefit to the community by continuing to follow through on this land exchange process with some minor differences to that initially proposed for the arterial. The Trust also supports the exchange of lands as earlier proposed as it would support the developments they have already completed around Trade Central. The exchange once completed will reduce the current fragmentation of both Pukeroa Oruawhata s land areas and the Council-administered reserve. The benefits for the community of this proposed exchange include the ability to expand the St John Ambulance Service in a central location through the granting of a lease and to further develop the existing skate park located within Sheaf Park to address deficiencies identified in the current design by the users. The benefits to Pukeroa Oruawhata Trust of the proposed exchange will allow the Trust to establish a trade education facility and to provide access to the rear of Trade Central. Attachment 1 shows the land that is proposed to be exchanged. The area highlighted in blue on the plan is the Council administered reserve and roading areas to be exchanged for the area shown in green, the Trust s ex-railway corridor. The proposed land exchange will see a total of 21,538m 2 of Council-administered land (in four separate lots) exchanged for 12,045m 2 of Ngati Whakaue land (a single lot). The 21,538m 2 is made up of 18,908m 2 of Townbelt Reserve and 2,630m 2 of road reserve (segregation strip) located on the corner of Amohau Street and Pukuatua Street. Segregation strips are designed to control vehicle movements onto and off of roadways. In discussion with Council s roading engineers, these road reserve areas have been identified as surplus as this purpose has been provided for within the District Plan. The Ngati Whakaue land of 12,045m 2 to be exchanged is a single lot that currently transects two areas of reserve (green land shown on Attachment 1). Incorporating this land with the adjoining reserve lots will enable extension of the current skate park located within Sheaf Park. This will include allowing for an area to provide a higher level of skating challenge than what is currently there. The design will include for support infrastructure i.e. car parking, toilet and event support. It will also allow for the St John Ambulance Service to increase their lease area and potentially seek access across the new larger reserve area to Amohau St. The actual exchange of lands will be enabled under Section 15 of the Reserves Act. What has been done to date? Discussions had with Pukeroa Oruawhata Trust and agreement around the extent of the proposed land exchange. Land status reports have been supplied for all parcels of land concerned.

3 3 Strategy, Policy and Finance Committee Resource consent lodged and granted providing the appropriate LOTS to enable the proposed exchange of lands. Subdivision plans have been lodged with LINZ. Draft tripartite agreement currently being drafted by the Property Group. This will be between Council, POT and Department of Conservation. What needs to be completed? Establish draft tripartite agreement. Council resolution confirming the land exchange. Carry out one month s public consultation around the intent of completing the land exchange. May possibly need to have a hearing depending on the responses to the public consultation. Enactment of land exchange through DoC as per tripartite agreement. Development of lease with St John Ambulance Service. Completion of public consultation for the design and development of an improved skate park and associated facilities. 4. DISCUSSION AND OPTIONS Option 1: Status Quo This option leaves the lands in the current state with no changes from what currently occurs and use of the land. The old railway corridor can t be utilised by the Trust and is not suitable for development beyond what it currently is. The Council-administered reserve remains fragmented and development of the Eastern end of the reserve to extend the skate park and recreation space is limited by the exrailway corridor. Option 2: Exchange land through a mutual sale and purchase, or nil-value exchange and change the reserve classification This option allows for both parties to realise their aspirations in terms of future development and delivery of services to the greater community. Changing the designation allows a lease to be created to expand the St John area. It will also enable more efficient use of land that is currently not suitable for development or location of other activities. This option will also enable Council to deliver on one of the investigation and delivery options that were agreed on as part of the 2015 LTP deliberations. That development options for the existing Sheaf Park skate park be investigated. Option 2a: Undertake the land swap as a nil value exchange This option recognises the original intent of the agreement between Council and Pukeroa Oruawhata as part of the Victoria Arterial designation. It also recognises the fact that the earlier Town Belt reserve was gifted land from Ngati Whakaue and reflects and supports the Council s partnership approach to working with iwi. Option 2b: Sale of land and purchase of land to establish clear value difference This option would remove any possible disparity in the areas of land involved but the areas would be very difficult to value due to the fragmented nature and shape of the lots and their restricted ability to be developed for other purposes. It also does not honour the earlier intent of the Victoria Arterial agreement for the exchange of land.

4 4 Strategy, Policy and Finance Committee Option 3: Undertake the land swap as described but leave the newly acquired land designated as Recreational Reserve This option removes the extra step of changing the exchanged land acquired by the Council to a Local Purpose Reserve that subsequently allows St John to lease a portion of it. This option will mean that St John Ambulance service will need to relocate from their current site as a result of not being able to fully redevelop to meet current and future demands. 5. ASSESSMENT OF SIGNIFICANCE Because of the reserve status of the Council-administered land, public consultation on this exchange process is a legislated requirement under the Reserve Act. Consequently the matters of this report could be considered as significant in accordance with the Council s Significance and Engagement Policy. 6. COMMUNITY INPUT/ENGAGEMENT AND PUBLICITY Under the Reserves Act Council is required to place a notice of intent in a local newspaper and allow for one month of public feedback on the proposal. Depending on the feedback received, Council may need to go through a formal hearing process. The advertisement for this notice will be placed twice in the local paper. The notice of intent will include the wording as presented in Recommendation 2. Council will also undertake targeted notification of all homeowners and other landowners adjacent to the reserve and include any leaseholders. The proposed land exchange has already been discussed with and supported by the Gifted Reserve Protocol Committee so consequently Iwi consultation has already occurred. 7. CONSIDERATIONS 7.1 Financial/budget considerations The costs of achieving the land exchange will be borne equally by Rotorua Lakes Council and Pukeroa Properties (No.2) Ltd. There will be no increase required in the operational budgets. 7.2 Policy and planning implications The exchange of land will enhance the district s ability to meet two of the 2030 Community Outcomes. Outstanding places to play Papa whakatipu Recreation opportunities are part of our lifestyle; connecting us, transporting us and surrounding us.

5 5 Strategy, Policy and Finance Committee 7.3 Risks Employment choices He huarahi hou We are a prosperous connected community; growing our education, training and employment opportunities. The land exchange did not form part of the Long-term Plan discussion with the public and has not been allowed for in any other Council policies and documents. There is a small risk with this proposal that the public could see the simple m 2 area of land to be exchanged uneven so perceive the exchange as unfair. As described with Option 2b, this simple measure does not account for the development potential of the blocks or the significant benefits to all parties of reducing fragmentation to improve public and educational/commercial offerings. This risk will be minimised through the development of a comprehensive communication plan explaining the background and purpose of the exchange prior to going to public consultation. 7.4 Authority Council does not have the authority to enact the land exchange directly, but has the obligation to complete the required Reserves Act processes to achieve the outcome. The Minister of Conservation needs to endorse Council s desire to undertake the land exchange. Council is currently working on a tripartite agreement with the Trust and the Department of Conservation which will be concluded prior to a final resolution from Council regarding the proposed land exchange. 8. ATTACHMENTS Attachment 1: Lands to be exchanged Attachment 2: Proposed lease area of St John and access way

6 6 Strategy, Policy and Finance Committee Doc No: RDC ATTACHMENT 1 15 June 2016 Attachment 1: Lands to be exchanged

7 7 Strategy, Policy and Finance Committee Doc No: RDC ATTACHMENT 1 15 June 2016

8 8 Strategy, Policy and Finance Committee Doc No: RDC ATTACHMENT 1 15 June 2016 Attachment 2: Proposed Lease Area of St John and accessway

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