NAMBUCCA SHIRE COUNCIL

 

Land Development Committee Meeting - 17 July 2014

 

AGENDA                                                                                                   Page

 

1        APOLOGIES

2        DISCLOSURE OF INTEREST

3        CONFIRMATION OF MINUTES —

Land Development Committee Meeting - 22 May 2014................................................................... 4   

4        ASKING OF QUESTIONS WITH NOTICE    

5        General Manager Report

5.1     Industrial and Residential Land.......................................................................................... 5

5.2     Proposed Reclassification and Sale of Part of Lot 8 DP 821952, Valla Beach Road, Valla Beach..................................................................................................................................... 24

5.3     Proposed Land Swap - Part of Lot 40 DP 711098 and Part of Lot 63 DP 1058432, Old Coast Road, Kingsworth Estate.......................................................................................................... 30

5.4     Proposed Reclassification and Rezoning of the Kingsworth Lake Reserve......................... 37     

 

NEXT MEETING DATE

 

CLOSURE

 


NAMBUCCA SHIRE COUNCIL

 

 

DISCLOSURE OF INTEREST AT MEETINGS

 

 

Name of Meeting:

 

Meeting Date:

 

Item/Report Number:

 

Item/Report Title:

 

 

 

I

 

declare the following interest:

          (name)

 

 

 

 

Pecuniary – must leave chamber, take no part in discussion and voting.

 

 

 

Non Pecuniary – Significant Conflict – Recommended that Councillor/Member leaves chamber, takes no part in discussion or voting.

 

 

Non-Pecuniary – Less Significant Conflict – Councillor/Member may choose to remain in Chamber and participate in discussion and voting.

 

For the reason that

 

 

 

 

 

 

Signed

 

Date

 

 

 

 

 

Council’s Email Address – council@nambucca.nsw.gov.au

 

Council’s Facsimile Number – (02) 6568 2201

 

(Instructions and definitions are provided on the next page).

 


Definitions

 

(Local Government Act and Code of Conduct)

 

 

Pecuniary – An interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person or another person with whom the person is associated.

(Local Government Act, 1993 section 442 and 443)

 

A Councillor or other member of a Council Committee who is present at a meeting and has a pecuniary interest in any matter which is being considered must disclose the nature of that interest to the meeting as soon as practicable.

 

The Council or other member must not take part in the consideration or discussion on the matter and must not vote on any question relating to that matter. (Section 451).

 

 

Non-pecuniary – A private or personal interest the council official has that does not amount to a pecuniary interest as defined in the Act (for example; a friendship, membership of an association, society or trade union or involvement or interest in an activity and may include an interest of a financial nature).

 

If you have declared a non-pecuniary conflict of interest you have a broad range of options for managing the conflict.  The option you choose will depend on an assessment of the circumstances of the matter, the nature of your interest and the significance of the issue being dealt with.  You must deal with a non-pecuniary conflict of interest in at least one of these ways.

 

·         It may be appropriate that no action is taken where the potential for conflict is minimal.  However, council officials should consider providing an explanation of why they consider a conflict does not exist.

·         Limit involvement if practical (for example, participate in discussion but not in decision making or visa-versa).  Care needs to be taken when exercising this option.

·         Remove the source of the conflict (for example, relinquishing or divesting the personal interest that creates the conflict or reallocating the conflicting duties to another officer).

·         Have no involvement by absenting yourself from and not taking part in any debate or voting on the issue as if the provisions in section 451(2) of the Act apply (particularly if you have a significant non-pecuniary conflict of interest).

 


NAMBUCCA SHIRE COUNCIL

MINUTES OF THE Land Development Committee Meeting HELD ON 22 May 2014

 

 

PRESENT

Cr Rhonda Hoban (Mayor)

Cr John Ainsworth (Deputy Mayor)

Cr Bob Morrison

Cr Brian Finlayson

Cr Elaine South

Michael Coulter (General Manager)

Mr Scott Norman (Assistant General Manager Corporate Services)

 

APOLOGIES

 

Cr Anne Smyth

Cr Paula Flack

Wayne Lowe (Manager Business Development)

Cr Kim MacDonald

 

DISCLOSURE OF INTEREST

 

There were no Disclosures of Interest declared.

 

CONFIRMATION OF MINUTES

 

 

There were no minutes to adopt.

 

 

 

ASKING OF QUESTIONS WITH NOTICE

There were no Questions with Notice.

 

 

General Manager Report

 

ITEM 4.1      SF791                220514      Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks

1/14 RESOLVED:  (Finlayson/Ainsworth)

 

1        That the information in the report concerning council owned land – available, developable land stocks, including unsold blocks be received.

 

2        That Council close the section of unused road reservation on the corner of Hyland Park Road and Mann Street and incorporate the land into the proposed Lot 14 in Council’s approved subdivision.

 

3        That Council’s seal be attached to any documents relating to the road closure, the creation of a title and the incorporation of the land into the proposed Lot 14 in Council’s subdivision.

 

4        That Council obtain an assessment of the current market value of the land at Hyland Park and Valla Beach.

 

5        That Council investigate alternate flood free areas for the development of commercial and residential areas at Macksville.

 

   

 

CLOSURE

There being no further business the Mayor then closed the meeting the time being 5.20 pm. 

 

CR RHONDA HOBAN

MAYOR

(CHAIRPERSON)

          


Land Development Committee Meeting                                                                                 17 July 2014

General Manager's Report

ITEM 5.1      SF791              170714         Industrial and Residential Land

 

AUTHOR/ENQUIRIES:    Michael Coulter, General Manager; Wayne Lowe, Manager Business Development         

 

Summary:

 

The report covers Council’s industrial and residential land holdings.

 

It provides a status report on pending and proposed actions.

 

The report also identifies the potential profit to be gained from the development and sale of residential lots from Council’s approved residential subdivision in Hyland Park.

 

 

Recommendation:

 

1        That the information in the report concerning council owned land – available, developable land stocks, including unsold blocks be received.

 

2        That Council’s seal be attached to any documents relating to the sale of Lot 2 DP 1197777 being Council’s industrial land parcel in Yarrawonga Street, Macksville.

 

3        That Council’s seal be attached to any documents relating to the leasing and sale of proposed Lot 11 DP 1197778 being Council’s industrial land parcel in Railway Road, Nambucca Heads.

 

4        That council support the preparation of a tender for the development of the 13 lot residential subdivision in Hyland Park with the lots to be sold “off the plan” prior to starting the subdivision civil works.

 

 

OPTIONS:

 

The report identifies two parcels of industrial land being prepared for sale being proposed Lot 11 in Railway Road, Nambucca Heads and Lot 2 Yarrawonga Street, Macksville.  Council has resolved to accept an offer from the Precision Placement Group Pty Ltd to purchase the proposed lot 11 in its undeveloped state for $245,000.  Council has also resolved to lease the land to the Precision Placement Group for $425 per week pending settlement.  Therefore there are no real options in relation to this land.

 

The land in Yarrawonga Street is ready to go to market and it is anticipated that by the time of this meeting that Council will have a valuation so that it will be able to fix a price for the land and a negotiation range for its sale.

 

The report proposes that the preparation work including the design and layout of the Hyland Park subdivision be completed to prepare to tender the construction and project management.  The alternative options for the land in Hyland Park are either to defer its development to a later time or to sell the land “englobo” to a developer and for them to undertake its development and sale.  The last option to sell the land “englobo” has been considered but given that Council owns the land with no finance and has obtained development consent, it is difficult to understand how the Council would achieve a higher return by selling it “englobo”.  The major difference between the two options relates to risk, and in this regard it is recommended that Council sell “off the plan” prior to committing to the civil works.

 

DISCUSSION:

 

At Council’s meeting on 22 May 2014 it was resolved that:

 

1        That the information in the report concerning council owned land – available, developable land stocks, including unsold blocks be received.

 

2        That Council close the section of unused road reservation on the corner of Hyland Park Road and Mann Street and incorporate the land into the proposed Lot 14 in Council’s approved subdivision.

 

3        That Council’s seal be attached to any documents relating to the road closure, the creation of a title and the incorporation of the land into the proposed Lot 14 in Council’s subdivision.

 

4        That Council obtain an assessment of the current market value of the land at Hyland Park and Valla Beach.

 

5        That Council investigate alternate flood free areas for the development of commercial and residential areas at Macksville.

 

This report provides an update on resolution no. 1 and also addresses the Hyland Park land referred to in resolution no. 4.

 

Nambucca Heads Industrial Land

 

Council owns an approved but undeveloped and unregistered 4 lot subdivision in Railway Road, Nambucca Heads.

 

A locality plan showing the land is attached.

 

The parcel has a total area of 2.65 hectares.

 

A plan showing the approved subdivision is attached.

 

Council has resolved to accept an offer from the Precision Placement Group Pty Ltd to purchase the proposed lot 11 (the lot closest to the railway station) in its undeveloped state for $245,000.  The land has an area of 4,450 square metres.  Council has also resolved to lease the land to the Precision Placement Group for $425 per week pending settlement.

 

The proposal is to have a contract which requires the purchasers to undertake the civil works to satisfy the conditions of consent and allow the subdivision to be registered.  The required civil works include the provision of road shoulder seal, kerb and gutter, interallotment drainage, sewer and water connections, the provision of an electricity connection and retaining walls as necessary.  Contributions are also required for water and sewer being $4,860 for water and $4,506 for sewerage.  There are also plan lodgement fees to Council and the Registrar General.  At the date of preparing this report, the purchasers were awaiting the determination of their development application for the use of the land.  The period for adjoining owner notification does not conclude until 18 July 2014.

 

The Manager Business Development has been undertaking the project management of the subdivision and sale with the following work being underway or completed:

 

·      Approval has been obtained for a staged subdivision;

·   An electrical designer has been engaged to provide the required design for the whole subdivision to be connected to the Essential Energy network.  This includes the installation of a sewerage pumping station.  The design will allow for accurate quoting and installation approvals by Essential Energy.

·   A design is being sought for the installation of Telstra pits and pipes for the three IN1 industrial lots

·   A geotechnical report has been obtained for the entire subdivision as per a condition of development consent.  This was a pre-requisite for civil earth works. 

 

An application made to NSW Trade and Investment to provide financial assistance for the development of the Nambucca Industrial site was refused.

 

In selling lot 11 undeveloped at the agreed price of $245,000, Council has the opportunity to generate the funds to provide power, water and Telstra infrastructure to all three IN1 lots (Lots 11, 12 and 13) at minimal additional cost.

 

From the $245,000 the committed or estimated development costs are:

 

Electricity to 3 lots                             $65,000

Pits & Pipes for Telstra 3 lots    $10,000

Geotechnical report                   $  5,000

Valuation report                        $  1,100

Total                                        $81,100

 

Of these costs Precision Placement has agreed to bear 30% of the costs relating to the provision of the electricity supply and Telstra pits and pipes to their proposed lot 11.  Their contribution will be:

 

Electricity to lot 11                             $  20,000

Pits & pipes for Telstra             $    3,300

 

The development of the next two lots from the Railway Road land will require council to install the pump station and associated infrastructure as well as the storm water detention pond. The prices expected to be achieved from the sale of lots 12 and 13 as developed lots is:

 

Lot 12 at 4,420m2 = $310,000

Lot 13 at 4,240m2 = $280,000 (contains easements)

 

Therefore the total projected income from the sale of the 3 lots is:

 

Lot 11 $245,000 – Undeveloped being $55.50 per m2

Lot 12 $310,000 - Developed

Lot 13 $280,000 - Developed

Total   $835,000

 

Estimated development costs for the other two IN1 lots being 8,660 m2 are $40 per m2 or $345,000.

 

The remaining 11,830 m2 of B7 zoned land is the fourth lot in the subdivision.  Its estimated undeveloped value is 11,830 m2 x $55.5 per m2 = $656,565.  Its estimated developed value is 11,830m2 x $75.00 per m2 = $887,250.

 

Yarrawonga Street, Macksville

 

There was a report to Council’s meeting on 27 March concerning the creation of an industrial lot in Yarrawonga Street.  A plan showing the subdivision is attached.

 

The subdivision is now approved with Lot 1 (zoned IN2 Light Industrial) having an area of 2,497m2 and Lot 2 (zoned RE1 Public Recreation) having an area of 1,085m2.

 

A valuation for the land is being sort with the intention of selling Lot 1. It is anticipated that a valuation will be available for consideration by this meeting so that Council may fix a listing price and negotiating range.

 

The only work required to achieve registration of the plan is the provision of water and sewer connections as well as connections to electricity and telecommunications.  The arrangements for these works to be done are underway.

 

Hyland Park

 

Council has an approved 13 lot subdivision for land it owns in Hyland Park.  A locality plan showing the site is attached.

 

In 2010 Council staff obtained a proposal from Hopkins Consultants for design services as well as an estimate of development costs.  A copy of that proposal is attached.

 

Recently the State Government announced that land development activities being undertaken by Councils with borrowed funds would be eligible for an interest rebate of 3% under the Local Infrastructure Renewal Scheme (LIRS) funding program.  The LIRS program is based on the repayment of principal and interest over a term of not more than 10 years.  With interest rates at historic lows and a 3% rebate being available, the holding costs using finance to undertake the subdivision are very low.

 

With this attractive financing option some consideration has been given to undertaking the Hyland Park residential subdivision.

 

However there are other matters which weigh towards Council continuing to defer the development of the land.

 

A significant factor is that recent modelling undertaken by the Assistant General Manager Corporate Services, suggests that Council cannot continue to support so much of its capital works program with borrowed funds and that the commitment of finance to the Hyland Park project may be at the expense of its capital works program.  This issue may not be significant if the subdivision could be completed and sold within a relatively short period.

 

When previously discussed by Council staff there was not a high level of confidence that Council would receive a reasonable return within a reasonable period and notwithstanding the availability of LIRS funding it would be better deferred to a period when property prices were stronger.  In this respect it was believed that with continuing low interest rates, property prices at Hyland Park should show some improvement following the completion of the Nambucca Heads to Urunga Pacific Highway upgrade.

 

The consensus was that the development should remain on hold however over the past month the Manager Business Development has been contacted by local Nambucca Heads Real Estates asking when the Hyland Park subdivision will be developed.

 

The Manager Business Development recommends that council finalise the civil works design for the subdivision with the intention to “sell off the plan”.  A tender for construction would be undertaken later in 2014/15 and with actual construction occurring in the 2015/2016 financial year.  It is proposed that Council undertake the construction with borrowed funds using the LIRS subsidy, but with a short term loan facility that would see the loan discharged as soon as sufficient lots were sold.

 

At Council’s meeting on 22 May 2014 it was resolved that Council obtain a current market value of the land at Hyland Park.  The valuation attached to the land in the general revaluation with a base date of 1 July 2013 was ????  If Council seeks a valuation from a registered valuer it will cost between $1,100 and $1,500 and without a detailed breakdown of likely development costs it cannot be definitive as to the likely return to Council from the subdivision of the land.

 

CONSULTATION:

 

There has been consultation with

General Manager

Assistant General Manager ES

Assistant General Manager CS

Manager Water & Sewer

Manager Technical Services

Manager Development and Environment

Manager Financial Services

Council’s Engineering Designer

Council’s Senior Town Planner

Essential Energy

Telstra

 

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no implications for the environment.

 

Social

 

The development and sale of industrial will assist with social wellbeing of the community via employment creation.

 

Economic

 

Council has a reasonable stock of vacant land which it can use to improve economic outcomes.

 

Risk

 

The report is for information. There are risks involved with all property development however all of these land development projects are producing land for sale based on covering development cost without extended borrowings.

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

The report is for information.

 

Source of fund and any variance to working funds

 

The report is for information.

 

Service level changes and resourcing/staff implications

 

There has been about a day’s work required in compiling the information and writing the report.

 

Attachments:

1

7664/2014 - Nambucca Industrial Land PDF

 

2

7665/2014 - Nambucca Industrial Land - Approved Subdivision TIF

 

3

7744/2014 - Subdivision Plan - Yarrawonga Street

 

4

7660/2014 - Hyland Park PDF

 

5

1917/2010 - Fee Proposal and development Cost Estimate - Hyland Park Estate, Nambucca Heads

 

  


Land Development Committee Meeting - 17 July 2014

Industrial and Residential Land

 


Land Development Committee Meeting - 17 July 2014

Industrial and Residential Land

 


Land Development Committee Meeting - 17 July 2014

Industrial and Residential Land

 


Land Development Committee Meeting - 17 July 2014

Industrial and Residential Land

 


Land Development Committee Meeting - 17 July 2014

Industrial and Residential Land

 











Land Development Committee Meeting                                                                                 17 July 2014

General Manager's Report

ITEM 5.2      SF791              170714         Proposed Reclassification and Sale of Part of Lot 8 DP 821952, Valla Beach Road, Valla Beach

 

AUTHOR/ENQUIRIES:    Michael Coulter, General Manager         

 

Summary:

 

The report proposes that Council reclassify and subdivide the “vacant” land to the west of the Valla Beach Pre-School car park with the intention of investing the proceeds in providing improved facilities in Valla Beach.  The identification of projects in Valla Beach to benefit from the proceeds would be undertaken in consultation with the Valla Beach Community Association, which is the Section 355 Committee responsible for the Hall and Pre-School.

 

 

Recommendation:

 

1        That Council give public notice of its intention to reclassify proposed Lots 2 and 3 as shown in trim document no. 18527/2014 as operational land and undertake the required public hearing in accordance with the Local Government Act 1993.

 

2        That Council lodge a development application for the proposed subdivision of Lot 8 DP 821952 as shown in trim document no. 18527/2014 with the necessary supporting information including environmental, bushfire and noise assessments.

 

3        That Council seek the assistance of an adjoining Council in undertaking the necessary public hearing and the assessment of the development application for the proposed subdivision.

 

4        That the proceeds of any land sale be invested in improving assets in Valla Beach and that the application of such funding be undertaken in consultation with the Valla Beach Community Association.

 

 

OPTIONS:

 

Council has the option of retaining all of the land as “community land”.  The slope and timbered nature of the proposed lot 3 is such that it is difficult to identify any public use other than its retention as a natural area.  Council needs to weigh the opportunity cost of retaining such land against realising its value to invest in the renewal or improvement of its assets.  In 2012-2013 Nambucca Shire Council had an operating performance ratio of -33.0.  The ratio measures a council’s achievement of containing expenditure within operating revenue.  A deficit before capital occurs when total expenses are greater than total revenue (excluding all capital amounts).  Even allowing for the transfer of the Macksville Showground, the ratio was still -11.2%, well below the TCorp benchmark of better than -4.0%.  Given Council’s weak financial sustainability, as a general principle it is not recommended that Council retain land where no public use is identified or likely.

 

A second option is that Council could undertake a residential subdivision of Lot 3 or both Lot 2 and Lot 3.  The proposed reclassification and subdivision does not preclude this option at a later date if it is determined that a higher return is achievable with an acceptable risk.

 

DISCUSSION:

 

At Council’s meeting on 22 May 2014 it was resolved to obtain an assessment of the current market value of the land at Hyland Park and Valla Beach.

 

Council’s major, largely “vacant” land holding at Valla Beach is the land containing the Valla Beach Pre-School and Valla Beach Hall.  The land is Lot 8 DP 821952, 22 Valla Beach Road.  It has an area of 1.89 hectares and is zoned Residential R1.  The land and its zoning are shown on the attached zoning map.

 

Pursuant to the Local Government Act, all of the land is classified as “community land”.

 

As at the 1 July 2013 base date, Lot 8 DP 821952 had a value of $206,000.  The value of the land had fallen from the previous valuation base date of 1 July 2010 when the assessed value was $266,000.

 

The Pre-School and Hall sit towards the centre and eastern part of the land with the larger western section being forest.  This is shown in the attached aerial/cadastral plan.

 

A suggested subdivision of the land is attached which shows the Pre-School,  Hall and existing car park being retained on the proposed Lot 1.  The proposed Lot 2 comprises partly cleared land adjoining the existing car park and may be suitable for a future public purpose whilst the proposed Lot 3 comprises the forested land with no identified public purpose.  The existing bus bay, which currently sits within Lot 8, should be incorporated in the road reservation.

 

It is suggested that Council seek to reclassify the proposed Lots 2 and 3 from community to operational land and seek approval for the proposed subdivision.  Should the reclassification and subdivision be approved, it is proposed that Lot 3 be sold and the proceeds of the sale be invested in improving assets in Valla Beach.  The application of the funding would be undertaken in consultation with the Valla Beach Community Association.

 

The proposed Lot 2 which adjoins the existing car park is likely to be suitable for a future public purpose and it is proposed that it be retained in Council ownership.

 

CONSULTATION:

 

There has been consultation with the Manager Business Development.

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

Council will need to submit a flora and fauna assessment, bush fire assessment and noise assessment (for the railway line) as part of the development application for the proposed subdivision.

 

Social

 

There are no identified social issues.

 

Economic

 

Any additional dwelling/s erected on the land will be of economic benefit to the Shire.

 

Risk

 

Because the land is owned by Council, so as to minimise any concerns regarding potential conflict of interests, it is proposed that the assessment of the development application be undertaken by an employee of an adjoining council (preferred) or a consultant (less preferred) and that the application be determined by Council.  Similarly the reclassification requires that the person presiding at the public hearing must not be a councillor or employee of Nambucca Shire Council (or a person who has been a councillor or employee within the past 5 years).  It is similarly preferred that the person presiding over the public hearing be an employee of an adjoining council (preferred) or a consultant (less preferred).  The Council must determine whether or not the reclassification proceeds following consideration of the report of the public hearing.

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

The preparation of information to support the development application for the subdivision will cost in the vicinity of $10,000.  If the development application for the subdivision is approved there will be costs in providing connections to services and contributions.  Based on the 1 July 2013 valuation for the land, the proposed lot 3 should achieve a sale price in excess of $100,000.  Neither the investigation costs nor the costs and revenue from any land sale have been included in the budget for 2014/15.

 

Source of fund and any variance to working funds

 

Council will need to need to source the investigation costs for the subdivision from the property development reserve.

 

Service level changes and resourcing/staff implications

 

There will be staff time required in the preparation of the development application and the management of the project.

 

Attachments:

1

18562/2014 - Zoning Map - 22 Valla Beach Road

 

2

18566/2014 - Aerial Cadastre - 22 Valla Beach Road

 

3

18527/2014 - Valla Preschool - proposed subdivision

 

  


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Sale of Part of Lot 8 DP 821952, Valla Beach Road, Valla Beach

 


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Sale of Part of Lot 8 DP 821952, Valla Beach Road, Valla Beach

 


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Sale of Part of Lot 8 DP 821952, Valla Beach Road, Valla Beach

 


Land Development Committee Meeting                                                                                 17 July 2014

General Manager's Report

ITEM 5.3      SF791              170714         Proposed Land Swap - Part of Lot 40 DP 711098 and Part of Lot 63 DP 1058432, Old Coast Road, Kingsworth Estate

 

AUTHOR/ENQUIRIES:    Michael Coulter, General Manager         

 

Summary:

 

On 31 March 2010 the Council resolved to agree to a land exchange (swap) at Kingsworth Estate at nil consideration.  At the time a valuation report, which Council had instructed be prepared, identified that the value of the land being transferred from Council was worth $25,000 more than the value of the land being transferred to Council.  Notwithstanding Council resolved to agree to the land exchange with each parcel treated as equal value.  The land has recently been sold and the new owners wish to complete the land exchange.  Whilst there are reservations about the merits of the agreement, Council should honour its previous resolution which the new owners have acted on, with the exception that it is not agreed that Council should incur further “out of pocket” expenses through meeting its own legal costs.  These should be met by the adjoining property owner.

 

 

Recommendation:

 

1        That Council confirm its agreement to the land exchange between part Lot 40 DP 711098 and part Lot 63 DP 1058432 at nil consideration subject to the owner of Lot 63 DP 1058432 meeting all legal, survey and transfer costs, including any stamp duty which may be payable.

 

2        That Council’s seal be attached to documents relating to the land exchange as required.

 

 

OPTIONS:

 

Council could seek the $25,000 consideration in its favour identified in the valuation report dated 4 January 2010.  Council could also seek a new valuation at a cost of approximately $1,200.  Council also has the option of changing its mind and not undertaking the land swap.

 

The options are complicated by the fact that the land has recently been sold with settlement occurring on 8 April 2014.  The new owners acquired the land knowing of and expecting the land swap to proceed.  On 11 June 2014 a development application for the boundary adjustment/land swap was lodged by their surveyor, Amos & McDonald.  A copy of the plan from the development application is attached.

 

DISCUSSION:

 

About 10 years ago the landowner of the adjacent property, Lot 63 DP 1058432, approached Council with a proposal for a boundary adjustment to enable a land swap between the Council reserve (Lot 40 DP 711098) and the rural residential land within Lot 63.  In essence the land swap provided that an elevated, cleared section of land in Council’s ownership with a very desirable outlook over the large dam, be swapped for steeper, treed land adjoining Old Coast Road.  The proposed land swap is shown on the following plan with Council giving the “white” coloured land from its Lot 40 and receiving the “green” coloured land from Lot 63.  The western end of Florence Wilmont Drive can be seen at the top of the aerial photo.

 

The Council proceeded to rezone and reclassify the land to facilitate the land swap.  Bennell & Associates undertook the public hearing into the reclassification of the “white” section of Lot 40 from community to operational land.  The change in zoning and classification to facilitate the land swap is shown in the following second plan with the land to be given by Council being rezoned R5 Large Lot Residential and the land to be received by Council being rezoned RE1 Public Recreation.  A more detailed zoning map is attached.

 

In the report on the reclassification, Bennell & Associates recommended that Council could proceed with the reclassification and rezoning subject to a property valuation of the land to be exchanged being undertaken.  The recommendation to obtain a valuation was adopted by Council at its meeting on 5 February 2009.  A valuation report was then obtained from North Coast Valuation Service.  The report dated 4 January 2010 identified consideration payable as a result of the land swap from the registered proprietors of Lot 63 to Nambucca Shire Council to be $25,000, ie the difference in value between the land being swapped required a payment to Council of $25,000.

 

Council considered the valuation difference at its meeting on 31 March 2010 and notwithstanding the valuer’s recommendation, resolved that Council agree to the land exchange with each parcel treated as equal value, ie that the payment of $25,000 from the property owner to Council not occur.

 

The justification in the report for the recommended $25,000 payment not being made as that:

 

“The original intention was a land swap with no payment as both parties benefited from the arrangement.

 

Council needs this land to enable a useable access to the reserve to be created and should proceed on the basis of a land exchange at equal value.  Each party can meet their own legal costs”.

 

The report also noted that access to the dam was required for emergency drought situations to collect water for roadworks.

 

 

 

 

 

The merits of the land swap and particularly waiving the consideration of $25,000 are questioned.  More broadly it is questioned whether there is any rationale for Council to own Lot 40 which contains the dam.  Whilst the land is zoned RE1 Public Recreation it has no constructed access and to provide for this and the necessary amenities for the area to be used for public recreation will cost the Council upwards of $200,000.  There will also be costs to Council in managing the land as well as being responsible for all of the risks associated with owning a large water body.  By any measure the Council has a significant over supply of land for public recreation and has neither the funds for the necessary capital expenditure to make the area useable nor the funds to maintain it.  The future of Council’s land (Lot 40) is the subject of another report in this business paper.

 

In relation to the land swap, in the circumstances that the new owners have acquired the land knowing of and expecting the land swap to proceed, Council should honour the resolved agreement.  However in the circumstances that the available evidence indicates the owners are receiving a significant valuation benefit, it is not agreed that Council should incur any further “out of pocket” expenses.  Therefore the owners of Lot 63 should meet all legal, survey and transfer costs, including any stamp duty which may be payable.

 

CONSULTATION:

 

There has been consultation with the new owners of Lot 63, with the Mayor and Council’s Senior Town Planner.  The matter has been discussed at the weekly review of outstanding development applications with the Manager Development & Environment, the Manager Technical Services, the Strategic Planner and Senior Health and Building Surveyor.

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no significant implications for the environment.

 

Social

 

There are no significant social implications.

 

Economic

 

There are no significant economic implications.

 

Risk

 

The risks are outlined in the report.  The Council has already agreed to the land swap on particular terms.  The new owner of the adjoining Lot 63 has purchased the land knowing of the agreed land swap and expecting it to proceed.

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

There are no budgetary implications.

 

Source of fund and any variance to working funds

 

There is no impact on working funds.

 

Service level changes and resourcing/staff implications

 

Council has already incurred a significant cost in terms of staff time and consultants reports in the rezoning and reclassification of the land the subject of the boundary adjustment.  If the boundary adjustment does not proceed, there will have to be a further commitment of staff time in rezoning that section of Lot 63 which is now zoned RE1 Public Recreation.  This zoning is not appropriate for privately owned land.  The Council would need to return it to its former zoning being R5 Large Lot Residential, the same zoning for the privately owned land in the Kingsworth Estate.

 

Attachments:

1

16461/2014 - Proposed Boundary Adjustment DA2014/099

 

2

18571/2014 - Zoning Map - Lot 40 DP 711098, Kingsworth Estate

 

  


Land Development Committee Meeting - 17 July 2014

Proposed Land Swap - Part of Lot 40 DP 711098 and Part of Lot 63 DP 1058432, Old Coast Road, Kingsworth Estate

 



Land Development Committee Meeting - 17 July 2014

Proposed Land Swap - Part of Lot 40 DP 711098 and Part of Lot 63 DP 1058432, Old Coast Road, Kingsworth Estate

 


Land Development Committee Meeting                                                                                 17 July 2014

General Manager's Report

ITEM 5.4      PRF72              170714         Proposed Reclassification and Rezoning of the Kingsworth Lake Reserve

 

AUTHOR/ENQUIRIES:    Michael Coulter, General Manager         

 

Summary:

 

Council is the owner of 17.6 hectares of land being Lot 40 DP 711098 which is zoned RE1 Public Recreation.  The land adjoins the Kingsworth Estate and contains a large dam.  The land has no constructed access and has not been developed for public recreation since it came into Council’s ownership as a developer contribution in the mid 1990’s.  The reserve is not well located to a population centre.  The available evidence suggests that Council has a surplus of publicly owned open space.  Besides the questionable value in retaining the land for public recreation, the Council has not, nor is ever likely to have the necessary funds to develop and maintain the land for public recreation.  It is recommended that the land be reclassified to operational and be rezoned for a low intensity use and then be sold with the funds to be applied to maintaining Florence Wilmont Drive.

 

 

Recommendation:

 

That Council:

 

1        Publicly notify its intention to reclassify Lot 40 DP 711098 (the Kingsworth Lake Reserve excluding the proposed land swap) from community to operational land and secure the services of a staff member from an adjoining Council to undertake the necessary public hearing.

 

2        In conjunction with the reclassification in 1, support the preparation of a planning proposal to rezone Lot 40 DP 711098 (excluding the existing R5 zoned land) from RE1 Public Recreation to E3 Environmental Management with a 40 hectare minimum area requirement for subdivision.

 

3        Resolve that the proceeds of any sale of the residue of Lot 40 DP 711098 (after the land swap) be applied to the maintenance and reconstruction of Florence Wilmont Drive.

 

 

OPTIONS:

 

Council has the option of taking no action or applying a different zoning.  Consideration was given to applying the more restrictive, E2 Environmental Conservation Zone however it does not permit extensive agriculture (grazing) nor aquaculture.  It is considered that some agricultural  use of the land should be permitted to provide some income for the management of the land.

 

DISCUSSION:

 

Reference is made to the other report is this business paper concerning the proposed land exchange (swap) of part of the “Kingsworth Lake Reserve” with an adjoining property, Lot 63 DP 1058432.

 

The Kingsworth Lake Reserve, being Lot 40 DP 711098, was dedicated to Council as part of a developer contribution and was categorised as community land (Natural Area, Bushland) on 4 May 1995.  It has an area of 17.6 hectares, much of it being a large water body (dam).

 

An aerial photo with cadastral detail showing the reserve is attached.

 

The land is zoned RE1 Public Recreation, except for a small area the subject of the proposed land swap which is zoned R5 Large Lot Residential.

 

A plan of management for the land was prepared in January 2012 in accordance with a recommendation from a public hearing into a proposed land swap (elsewhere reported).  The adopted plan of management for the land is attached.

 

The land has no physical access for a vehicle.  There is an access handle between Lots 5 and 6 Florence Wilmont Drive which is suitable for only pedestrian access.  There is no constructed access off Old Coast Road.  Given how close the dam sits to the boundaries of the property it is doubtful whether physical access can be provided around the perimeter of the dam.

 

The preliminary observation of the consultant, Sue Suter who is undertaking the review of Council’s Community Facilities and Open Space Contribution Plan is that in general terms the Shire has an overabundance of public open space.  In relation to this particular reserve Council will need to spend upwards of $200,000 to provide the necessary access and amenities to enable it to be used.  Council will also incur costs in managing the reserve.  Its relatively isolated location makes it more vulnerable to illegal dumping and vandalism.  In addition the large dam presents other risks and costs, for example in relation to the management of aquatic weeds and the potential for drowning.

 

The reserve is not well located to a population centre.  Whilst it adjoins the Kingsworth Estate, a large lot residential subdivision, it is located approximately half way between the urban centres of Macksville and Nambucca Heads. 

 

Whilst the use of the very large dam on Lot 40 was considered in Council’s drought emergency planning for water supply, with the impending completion of the $54m 4,500 ML off river water storage at Bowraville it is no longer likely that dam will be required for emergency water supply.

 

Besides the questionable value in retaining the land for public recreation, the Council does not, nor is ever likely to have the funds to develop and maintain the land for public recreation.

 

Council will be better placed to reclassify the land as operational and rezone it to provide for a low intensity private use consistent with its environmental attributes and the aesthetic value it provides to some of the adjoining residential properties in the Kingsworth Estate.  In this respect the recommended zoning is the E3 Environmental Management Zone, the objectives of which are:

 

Ø To protect, manage and restore areas of high ecological, scientific, cultural or aesthetic values

Ø To provide for a limited range of development that does not have an adverse effect on those values.

 

The proposed E3 Environmental Management zone provides for a limited range of permissible land uses which includes a dwelling house, extensive agriculture and aquaculture.

 

The E3 Environmental Management zone is also consistent with the zoning of land immediately to the east.  A zoning map showing the relationship of the land to surrounding holdings is attached.

 

Assuming the land is reclassified and rezoned as recommended, it is proposed that the land be sold with the proceeds applied to the maintenance and reconstruction of Florence Wilmont Drive.

 

CONSULTATION:

 

There has been consultation with the new owners of Lot 63; with Council’s Senior Town Planner as well as with the Manager Development & Environment, the Manager Technical Services, the Strategic Planner, the Senior Health and Building Surveyor, the Assistant General Manager Engineering Services and the Business Development Manager.

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There will need to be environmental investigations to determine that a dwelling may be erected on the residue of Lot 40 (after the land swap).  These investigations will need to include a bush fire and flora/fauna assessment.  In order to ensure the privacy of neighbouring properties it is proposed that a dwelling envelope be fixed before the land is sold.

 

Social

 

The value of the land for public recreation is discussed in the report.

 

Economic

 

There are no significant economic implications.

 

Risk

 

The financial and other risks are detailed in the report.

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

There is no provision in the budget for the necessary environmental investigations which will be required for the proposed rezoning.  These will include a bush fire assessment and flora/fauna assessment.  It is estimated that the cost of this work will be less than $10,000. This can be funded from the Property Development Reserve.  Provision for this will need to be made in the next quarterly budget review.

 

It is anticipated that the required public hearing for the reclassification could be undertaken by a staff member of an adjoining Council.  The cost attached to this would be the offer of a reciprocal arrangement.  This can be met within existing overheads so Council will not incur an expense.

 

No provision has been made for any revenue from the sale of the land.  This is unlikely to be achieved in this financial year.

 

Source of fund and any variance to working funds

 

There is no impact on working funds.

 

Service level changes and resourcing/staff implications

 

There will be staff time required in preparing and reporting on the planning proposal.  The preparation of the necessary environmental investigations will also need to be managed.  However the removal of the reserve from Council’s list of assets to maintain will over time result in a substantial reduction in Council’s service levels.  This will far exceed the initial commitment of resources to reclassify and rezone the land.

 

Council needs to weigh the opportunity cost of retaining such land against realising its value to invest in the renewal or improvement of its assets.  In 2012-2013 Nambucca Shire Council had an operating performance ratio of -33.0.  The ratio measures a council’s achievement of containing expenditure within operating revenue.  A deficit before capital occurs when total expenses are greater than total revenue (excluding all capital amounts).  Even allowing for the transfer of the Macksville Showground, the ratio was still -11.2%, well below the TCorp benchmark of better than -4.0%.  Given Council’s weak financial sustainability, as a general principle it is not recommended that Council retain land where no public use is identified or likely.

 

Attachments:

1

18934/2014 - Kingsworth Lake Reserve - aerial photo/cadastre

 

2

26765/2011 - Adopted Plan of Management

 

3

18967/2014 - Kingsworth Lake Reserve Zoning Map

 

  


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Rezoning of the Kingsworth Lake Reserve

 


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Rezoning of the Kingsworth Lake Reserve

 

 

 

 

 

PLAN OF MANAGEMENT

NATURAL AREAS, BUSHLAND

Part Lot 40 DP 711098

Old Coast Road, Kingsworth Estate

 

 

 

 

 

Prepared by:

                                                     Nambucca Shire Council

                                             P O Box 177

                                             MACKSVILLE  NSW  2447

 

 

Adopted by Council 19 January 2012


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Rezoning of the Kingsworth Lake Reserve

 

NAMBUCCA SHIRE COUNCIL

 

 

 

PLAN OF MANAGEMENT

 

NATURAL AREAS,

BUSHLAND

Part Lot 40 DP 711098

Old Coast Road, Kingsworth Estate

 

BACKGROUND

 

The landowner of the adjacent property, (Lot 63 DP 1058432), approached Council with a proposal for a boundary adjustment to enable a land swap between the Council reserve land and the rural land within Lot 63.

 

Council resolved to proceed with the Draft LEP (Amendment No. 62) on the 20 April 2006 and Council received an authorisation to issue a Section 65 Certificate on 7 July 2006, and exhibited the draft plan from 25 August 2006 to 22 September 2006. The Draft LEP was for the rezoning of the land to be exchanged and reclassification of the open space land.

 

The land was categorised as community land (Natural Area, Bushland) on 4 May 1995 and was dedicated to Council as part of a developer contribution under Section 94 of the Environmental Planning and Assessment Act 1979. It was indicated at that time that the design for subsequent stages were preliminary and “minor variations in boundary location between lots and proposed public reserve may be necessary”.

 

Council concurred with the land exchange and reclassification to enable legal access to the reserve. There is no suitable legal access from the end of Florence Wilmont Drive to Old Coast Road as the existing access way between Lots 5 and 6 Florence Wilmont Drive is suitable for pedestrian or bicycle access only. Council require access to the dam within the reserve for the purpose of emergency drought situations, water for dust suppression and for fire fighting purposes.

 

 

GENERAL DESCRIPTION

 

This plan applies to the community land in the category of Natural Area, Bushland.  It is intended to cover the land known as Part Lot 40 DP 711098 Old Coast Road, Kingsworth Estate.

 

The subject land is located in Nambucca Heads at the western end of Florence Wilmont Drive. The land is adjacent to an informal intersection with Old Coast Road. The land is located at the western extremity of the Kingsworth Estate Rural Residential Release Area.

 

The site is located at the western end of Kingsworth Estate and adjoins land predominately zoned R5 Large Lot Residential.

 

 

 

CLASSIFICATION OF LAND

 

The land known as Part Lot 40 DP 711098 Old Coast Road, Kingsworth Estate is categorised as community land. The sub-category is Natural Area, Bushland.

 

The proposal requiring the reclassification of the land is the result of a proposed boundary alteration; a land swap between the rural land and open space land. The exchange of land will result in a nett increase in the reserve of 8,940 m2; 4,960 m2 of reserve is proposed to be zoned for rural residential purposes and 1.39 hectares of rural land is proposed to be rezoned for open space purposes.

 

The proposal will increase the street frontage of the reserve from 60.57 m to 242.67 m and will allow a dedicated road to the existing dam to be used for emergency access for water in times of drought and for water to be used for fire fighting purposes or as a dust suppressant at other times.


 

Pre-existing zone

New Zone

 

 

OWNER OF LAND

 

Nambucca Shire Council is the owner of the land.  Part Lot 40 DP 711098 Old Coast Road Kingsworth Estate.

 

 

TRUST, ESTATE, INTEREST, DEDICATION, CONDITION, RESTRICTION OR COVENANT APPLYING TO THE LAND

 

There is no trust, estate, dedication, condition, restriction or covenant applying to the land known as Part Lot 40 DP 711098 Old Coast Road, Kingsworth Estate.

 

 

OWNERS APPROVAL OF MANAGEMENT PLAN

 

Nambucca Shire Council is the owner of the land.

 

 

LEASEHOLD DETAILS

 

There are no leasehold details associated with the land known as Part Lot 40 DP 711098 Old Coast Road, Kingsworth Estate. 

 

 


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Rezoning of the Kingsworth Lake Reserve

 

NAMBUCCA SHIRE COUNCIL

 

PLAN OF MANAGEMENT

 

NATURAL AREA, BUSHLAND

Part Lot 40 DP 711098

Old Coast Road, Kingsworth Estate

 

MANAGEMENT ISSUES

OBJECTIVE/PERFORMANCE TARGETS

MEANS OF ACHIEVEMENT

MANNER OF ASSESSMENT

Landscape Character

Maintain the natural flora

Reduce the invasion of urban weeds

Annual inspection

 

 

Control noxious weeds

Annual inspection

 

 

Maintain existing native plants. Replant with local indigenous plants

Annual inspection

 

 

Lop trees that are hazardous to users and adjoining private land.  (Do not lop to restore views or that shade properties)

Annual inspection

 

 

Remove trees with termite infestations

Annual inspection

Facilities

Limit construction of facilities on reserves

Limit furniture to seats where needed by walkers.  No toilets, garbage bins, tables or BBQ’s

Annual inspection

Paths

Access paths are to be non-intrusive

Use natural materials such as gravel, soil, bark on pathways and timber formed steps where necessary

Identify high use areas by pedestrians

Unauthorised Use

No intrusion is permitted of private use such as gardens, boats, cars, caravan, rubbish etc

Existing intrusions are identified and notices to remove are issued

Annual inspection

Bushfire Protection

Litter not be allowed to accumulate to the stage of being a bush fire hazard

Slash block or control burn according to Bush Fire Management Plan

Annual inspection

 

 

 

Prepare Bush Fire Management Plan

 


 

MANAGEMENT ISSUES

OBJECTIVE/PERFORMANCE TARGETS

MEANS OF ACHIEVEMENT

MANNER OF ASSESSMENT

Management and Administration

An efficient and practical administration and management system with clear areas of responsibility and a well defined method of obtaining

Employment of staff with horticultural training.  Provide sufficient funds for correct maintenance practice

The reserve is to maintain its natural environment. The park superintendent to develop a program to maintain the reserve at a reasonable standard

Soil and Drainage

To maintain a surface runoff system compatible with the bushland

Use natural drainage lines, pipelines, dish drains, grass drains

The reserve is to maintain its natural environment

 

 

Control runoff from adjacent development

Annual inspections

 

 

Control runoff from road drainage

No evidence of siltation or water borne rubbish

 

 

Prevent and control erosion

Annual inspection

 

 

Keep gullies free of debris

Annual inspection

Fencing

Protect areas from damage by vehicles, pedestrians and intrusion

Identification of fencing locations to ensure vehicles are kept out of the reserve

Annual inspection

Parking

Restrict parking to defined areas

Identify the need for parking to ensure vehicles are kept out of the reserve

Annual inspection

Signs

Identify as public land

Erect signs at access points

Install signage in 2012

Utilities

To allow the installation of utility services

Permit the construction of underground pipelines for stormwater, sewerage and water supply

Plans and completed works to be approved by the Manager responsible for Recreation

 

 

Permit surface drainage of stormwater

 

 

 

Permit overhead or underground electricity supply

 


Land Development Committee Meeting - 17 July 2014

Proposed Reclassification and Rezoning of the Kingsworth Lake Reserve