Dunedin City Council Property

Transcription

1 Dunedin City Council Property

2 Property Value of total portfolio excess of $553 million In 1990 the Property Department changed to a Council Business Unit 2015 now a Property Department - new operating models Adopt Assumed Landlord Principle. Customer Focus - Commercial underpinning Systems Thinking Whole of Council Property Management & Advisor

3 History of Dividend Returns 2009/2010 $3.05 million 2010/2011 $3.72 million 2011/2012 $4.25 million 2012/2013 $4.60 million 2013/2014 $4.24 million 2014/ $4.25 million

4 Property Structure PROPERTY DEPARTMENT Housing Property Portfolio Commercial Property Portfolio Civic Property Portfolio Community Property Portfolio Property Advisory & Project Management Investment Property Portfolio Endowment Property Portfolio Strategic Property Assets Management FACMAN Facilities Management

5 Community Housing Purpose: HOUSE ME: Taking a customer s perspective, people whose needs are not met by the private sector s housing market arrive at our door seeking homes. The role of Housing is to find homes for these people. City Housing has three core functions: House people in Council owned homes i.e. Residential Property Management place people in homes, look after their needs, and help them leave. Help people find other provider homes that meet their needs Build capacity of Dunedin City to house people appropriately. Examples of current programmes are: Warm Dunedin and other funding mechanisms. Cosy Homes Trust A Local Bill relating to Housing Warrant of Fitness. HOUSING MANAGER S ROLE: To create and grow the capability of Dunedin City Council to meet customer housing needs In 2015 the Community Housing team reviewed the methods by which value is delivered to the customers A breakeven business approach manages the portfolio at no cost to ratepayers and provides rentals around 25% below private market levels.

6 Community Housing Operating Model

7 Community Housing Portfolio Portfolio value $73 million 91 Properties 941 units - bedsit, single, double and 2-bedroom Low maintenance/operational costs 30 new units since 2005 $1.45 million per year for upgrades (no cost to ratepayers)

8 Civic Portfolio Purpose: Optimising Their Ability to Service the Customer Portfolio Value $210 million Civic Centre/Municipal Chambers Libraries and Community Halls Dunedin Conference Venue Toitū Otago Settlers Museum Chinese Garden Dunedin Public Art Gallery Commercial Lease model

9 Investment Property Portfolio Purpose: Optimising Return on Investment The Investment Portfolio was set up in the 1990s by Council Resolutions. The Endowment Lands Act 1988 status of that Portfolio means property retained for perpetual returns to Council. The Investment & Endowment Portfolios provide non rates based income. For every $1m of dividend this reduces rates increase by approximately 1%. Contributes approx $100 per household towards rates.

10 Commercial Property Portfolios: Portfolio Value $ million Investment properties in Auckland, Wellington, Christchurch and Dunedin. Investment portfolio benchmarked against listed property funds at the top end for both Average lease term 6.9 years Current debt to asset ratio - 16% Objective -long term income/growth and low to medium risk profile

11 Community Portfolio Purpose: Optimising Use of the Facility for the Benefit of the Community Portfolio Value $150 million Regent Theatre Fortune Theatre Edgar Sports Centre Dunedin Ice Stadium Dunedin Railway Station Gasworks Museum Sargood Centre

12 Strategic Property Asset Management Purpose: The Assumed Landlord (Herding Cats) Strategic Assets: CLARITY OF PURPOSE SURPLUS PROPERTY SALES & CAPITAL REALISATION Reserves & Other Lands Disposals Roading: Reserves Contributions, Easements & Licences Encroachments Wide Range of Boundary Issues Across City Public Works & Other Acquisitions & Disposals Strategic Property Advice & Direction Locality & Site Master Planning

13 Strategic Property Asset Management Purpose: The Assumed Landlord (Herding Cats) Strategic Assets: Master Planning Civic Campus Sale Caledonian Bowling Club Sale of Lessee Interest on Harbourside Industrial Water & Waste Lands held for Buffers & Future Use Now Obsolete East Taieri Structure Plan Recreational Land Use by Clubs & Societies Transparency of Community Grant Support (Double Dipping)

14 Strategic Property Asset Management: Current Projects: Logan Park land to Otago Polytechnic $20m residential facility & general campus purpose Gasworks Museum upgrade Logan Park Master Planning & Sport House Edgar Centre Master Planning Sth Dunedin Community House & Library $4m Frederick St Commercial & Car Park Complex Social and Affordable Housing Strategy Co-Housing Developments

15 Project Management: Some Recent Projects: Municipal Chambers/Dunedin Centre/Town Hall redevelopment Toitū Otago Settlers Museum upgrade Sargood Centre (old Art Gallery, Logan Park) Redevelopment of Blueskin Bay Community Centre (library) Gasworks Museum Fitting Shop SH88 Realignment for Forsyth Barr Stadium - land acquisition. Dunedin Botanic Gardens new propagation facility

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17 Project Management: