Land Development Committee Meeting - 22 May 2014





AGENDA†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Page


1††††††† APOLOGIES



4††††††† General Manager Report

4.1†††† Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks... 4 ††


















Name of Meeting:


Meeting Date:


Item/Report Number:


Item/Report Title:






declare the following interest:

††††††††† (name)





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




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



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


For the reason that















Councilís Email Address Ė


Councilís Facsimile Number Ė (02) 6568 2201


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




(Local Government Act and Code of Conduct)



Pecuniary Ė 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 Ė 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).



Land Development Committee Meeting††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 22 May 2014

General Manager's Report

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


AUTHOR/ENQUIRIES:††† Michael Coulter, General Manager ††††††††




The report covers Council land holdings in Hyland Park, Nambucca Heads, Macksville and Valla Beach.


It provides an ďup to dateĒ assessment of the status of the various landholdings.





1††††††† That the information in the report concerning council owned land Ė 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 Councilís approved subdivision


3††††††† That Councilís 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 Councilís subdivision.





The report indicates a range of options if Council wishes to financially support the Nambucca Heads Mensí Shed.





At Councilís meeting on 13 March 2014 it was resolved that Council be provided with a report by 25 March 2014 on all available, developable land stocks including any unsold blocks and it be considered by a meeting of the Land Development Committee.† However it is understood that the reference in the yet to be adopted minutes to the Land Development Committee may have been to the Economic Directions Committee which meets on 25 March.† This report has been circulated to that Committee.


There was also a resolution from Councilís meeting on 13 February that Council try to identify a suitable allotment of land in Nambucca Heads for the Nambucca Heads Menís Shed.


The Council considered this report at its meeting on 27 March 2014 and resolved to defer consideration to a meeting of the Land Development Committee which has been scheduled for 15 May 2014, immediately before the scheduled Council meeting.


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 would likely 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 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 is 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.


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 staff have been negotiating with a company Precision Formwork for the sale of proposed lot 11 (the lot closest to the railway station) which has an area of 4,450 square metres.† The proposal is to have a contract which requires Precision Formwork 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.


Council staff have not fully investigated and compiled the costs for undertaking the required civil works for the subdivision.† This requires a major commitment of staff time.† With the other lots there are additional requirements for the provision of stormwater detention and also the provision of a sewer pump station.


A general estimate of the development costs was provided by Hopkins and Associates in February 2010.† At the time they estimated the total development costs to be $518,000, however this did not include provision for the sewerage pump station, for stormwater detention, electricity connections and consultants fees.


The current proposal from Council staff is that with the proceeds of the sale of the proposed lot 11, that Council consider developing the proposed lots 12 and 13, hopefully with contributory grant funding from NSW Trade and Investment.† Whilst there have been promising discussions with NSW Trade and Investment about them contributing $250,000 to the project, as yet this application has not been approved.


If Council is looking at an opportunity to locate the Nambucca Heads Menís Shed on Council owned land then the best opportunity would be in relation to the subdivision of the proposed lot 13 which will be encumbered by a water detention basis and sewer pump station but which will still have a residual area of over 2,500 square metres.


Based on the advice of Hopkins and Associates plus the other known costs, allowing say $600,000 for all development costs, it should be understood that the current estimated cost of developing the land to allow the registration of the subdivision will be in the vicinity of $30 per square metre.† For a 2,000 square metre site for the Nambucca Heads Menís Shed this will equate to a financial contribution of $60,000 plus the englobo value of the land.† It needs to be understood that this is a preliminary estimate and a very substantial amount of staff work would be required to develop a firm budget.


The disadvantage of the suggested option for the Nambucca Heads Menís Shed is that it is dependent upon a number of outcomes occurring, being the sale of Lot 11 and the provision of contributory funding from NSW Trade and Investment.† Whether and how long this will take to occur is uncertain.


In terms of certainty and cost, another option for supporting the Nambucca Heads Menís Shed is purchasing the vacant lot of 1,800 square metres which is located beside the existing Nambucca Heads Menís Shed and which is for sale for $132,000 including GST.† Given the development costs and possible delays associated with the Council land, this may be a proposition if the Council wishes to financially support the Menís Shed in locating onto their own land.† It is unknown what, if any contributory funding the Menís Shed may be able to put to acquiring the land.


As a footnote to the discussion about the Councilís industrial land, there is section of about 3,000 square metres of land at the corner of Hyland Park Road and Mann Street which is unused road reservation.† This section of road should be closed and the land incorporated into the proposed Lot 14.† As the road reservation contains a constructed Council road, Council will be the owner of the land and will not have to pay Crown Lands for its englobo value.


Farringdon Fields


Farringdon Fields is flat, cleared land with an area of over 3 hectares.† The land is located at the end of Marshall Way.† The land was dedicated to Council in lieu of substantial Section 94 contributions for the Marshall Way subdivision but has never been used as sporting fields because of its location in close proximity to a sacred Aboriginal place.† The cultural significance of the site to Aboriginal people is such that Aboriginal women and children do not visit the place and hence it cannot be used by schools or sporting associations.† The Council maintains the land by mowing and other than occasional passive recreation it has no identified function.


A locality plan showing Farringdon Fields is attached.


Because of the nature of a Menís Shed, its location on part of Farringdon Fields would be culturally appropriate.† A recategorisation and rezoning of the land would be required for a Menís Shed project to proceed.


Yarrawonga Street, Macksville


There is a report to Councilís meeting on 27 March concerning the creation of an industrial lot in Yarrawonga Street.† A plan showing the proposed subdivision is attached.


The site is owned by Nambucca Shire Council, has an area of 3582m≤, contains a gradual slope towards the north with significantly modified vegetation, and is split zoned with the northern half of the site located within the IN2 Light Industrial Zone and the southern half located within the RE1 Public Recreation Zone.


It is proposed to subdivide the site into two allotments with the dividing boundary in the location of the existing split zone boundary. It is proposed that Lot 1 (IN2 Zone) have an area of 2497m≤ and Lot 2 (RE1 Zone) have an area of 1085m≤.


It is proposed that once the subdivision is completed that the lot be marketed for sale with the proceeds to be applied to the Land Development Reserve which is budgeted to have a balance of $192,172 as at 30 June 2014 (not including the sale of the Yarrawonga Street land).


Lower Nambucca


A number of years ago, Council received a report from an ecological consultant indicating the existing forest on the land has ecological significance.† There have also been issues in obtaining access to the Pacific Highway.† Whilst the relocation of the highway should reduce the cost of a direct access, the resolution of the ecological issues will likely be difficult, expensive and impractical.† As a consequence there has been no staff time spent on further investigating the development potential of the land.


Land attached to the Valla Beach Pre-School and Hall


There is a substantial area of unused forested land located below the Valla Beach Pre-School and Hall.


Similar to the land at Lower Nambucca, preliminary environmental investigations indicate that the forest has ecological significance which is likely to make development difficult, expensive and impractical.† .† As a consequence there has been no staff time spent on further investigating the development potential of the land.


Kelly Close


Council received an enquiry from Mr Tony Gordon concerning the development of a grease trap effluent recycling plant next to the Macksville Sewerage Treatment Plant which is located off Kelly Close and behind Councilís Works Depot.


Council obtained a valuation for subdividing 2,500 square metres of land adjoining the Macksville Treatment Plant.† The valuation was for $87,500 based on its RU1 Zone with a proposed industrial use.† The potential use of land beside a large sewage treatment plant is very limited and the valuation reflects this.†


The proposed development is designated development and there has been no further progress with negotiations pending the submission of an EIS.





There has been consultation with the Manager Business Development.







There are no implications for the environment.




The report has not canvassed the social issues concerning the Menís Shed.† There are significant social issues concerning the use of Farringdon Fields.† These are outlined in the report.




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




The report is for information.† There are no risks.





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 dayís work required in compiling the information and writing the report.




7660/2014 - Hyland Park PDF



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



7664/2014 - Nambucca Industrial Land PDF



7665/2014 - Nambucca Industrial Land - Approved Subdivision TIF



7735/2014 - Farringdon Fields PDF



7744/2014 - Subdivision Plan - Yarrawonga Street


Land Development Committee Meeting - 22 May 2014

Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks


Land Development Committee Meeting - 22 May 2014

Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks


Land Development Committee Meeting - 22 May 2014

Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks


Land Development Committee Meeting - 22 May 2014

Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks


Land Development Committee Meeting - 22 May 2014

Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks


Land Development Committee Meeting - 22 May 2014

Council Owned Land - Available, Developable Land Stocks, Including any Unsold Blocks