HUTT CITY COUNCIL

 

Ordinary meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

 Tuesday 8 December 2020 commencing at 2.00pm.

 

 

SUPPLEMENTARY ORDER PAPER

 

 

Public Business

 

 

 

    

  8.       Miscellaneous               

 

f)       Urban Plus Group - Annual Report for the Year ended 30 June 2020 (20/1252)

Report No. HCC2020/6/309 by the Senior Accountant                             2

Mayor’s Recommendation:

“That the recommendation contained in the report be endorsed.”

 

g)      Mitchell Park Proposal (20/1451)

Report No. HCC2020/6/311 by the Team Leader Parks                          36

Mayor’s Recommendation:

“That the recommendations contained in the report be discussed.”

 

 

 

 

 

Kate Glanville

SENIOR DEMOCRACY ADVISOR

 

 


                                                                                       2                                                 08 December 2020

Hutt City Council

3 December 2020

 

 

 

File: (20/1252)

 

 

 

 

Report no: HCC2020/6/309

 

Urban Plus Group - Annual Report for the Year ended 30 June 2020

 

Purpose of Report

1.    To provide Council with the Annual Report for Urban Plus Group (UPL) for the year ended 30 June 2020.

Recommendation

That Council receives and notes the Annual Report for Urban Plus Group to 30 June 2020, attached as Appendix 1 to the report.

 

Background

2.    It is a requirement of the Local Government Act 2002 that a Council Controlled Organsation (CCO) deliver to its shareholders an annual report on the organisation’s operations.  This report is presented to Council for information.

3.    Mr Brian Walshe (Board Chair) and Mr Craig Walton (Chief Executive) will be at the meeting to present the Annual Report and answer any questions.

Discussion

4.    The audited Annual Report is attached as Appendix 1 to the report.  The Annual Report details the results and achievements for the year.

5.    The Annual Report received an unmodified opinion from Audit New Zealand.

Impact of COVID-19

6.    The COVID-19 emergency and subsequent lockdown had minimal impact on the financial results of UPL.  A six month freeze on rental increases was announced to tenants in March however no increases were scheduled to occur prior to 30 June 2020.  Closure of construction sites during alert level 4 contributed to delays in completing projects. While sales are unaffected, the timing of settlements were delayed.

7.    Comprehensive details are disclosed in note 21 of the annual report.

Climate Change Impact and Considerations

8.    The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.

Consultation

9.    There are no consultation requirements arising from this report.

Legal Considerations

10.  Due to COVID-19, the statutory deadline for completion of the Annual Report was amended by Parliament in August 2020 from 30 September to 30 November for all Council Controlled Trading Organisations.

Financial Considerations

11.  The audit was concluded on 30 November and an unmodified audit opinion issued.

Appendices

No.

Title

Page

1

Urban Plus Limited Annual Report for the year ended 30 June 2020

4

    

 

 

 

 

 

Author: Simon George

Senior Accountant

 

 

 

 

 

 

Reviewed By: Darrin Newth

Financial Accounting Manager

 

 

 

Approved By: Jenny Livschitz

Chief Financial Officer

 


Attachment 1

Urban Plus Limited Annual Report for the year ended 30 June 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 


                                                                                      40                                                08 December 2020

Hutt City Council

4 December 2020

 

 

 

File: (20/1451)

 

 

 

 

Report no: HCC2020/6/311

 

Mitchell Park Proposal

 

Purpose of Report

1.    This report outlines a proposal to revoke the reserve status of an area of Mitchell Park and sell to the owners of the adjoining Hutt Valley Health Centre property, on the basis that net proceeds from the sale of the land would contribute towards Hutt Valley Tennis’ redevelopment plans.  

Recommendations

That Council:

(i)    notes an offer from Hutt Valley Health Limited to purchase from Council approximately 1640m2 of reserve land at Mitchell Park, adjacent to its current site, for a sum of $1.4M;

(ii)   notes the land is currently leased to the Hutt Valley Tennis Association;

(iii)  notes that discussions with representatives of the Hutt Valley Tennis Association indicate support for the proposal subject to the net proceeds of sale being re-invested in upgrading tennis facilities in line with its redevelopment plans;

(iv) notes that the Hutt Valley Tennis Association plans to hold a special meeting in order to outline the proposal to its members and key stakeholders;

(v)  agrees to initiate a proposal to revoke the reserve status of approximately 1640m2 of land at Mitchell Park, (as shown in the plan in paragraph 5 of this report), for the purposes of making the land available for sale to Hutt Valley Health Limited with the net proceeds of sale being used to enhance tennis facilities on the Park;

(vi) notes that officers would commence the formal consultation process as required by the Reserves Act 1977 in February 2021, once the Hutt Valley Tennis Association has had its special meeting; and

(vii)     agrees, subject to the proposal succeeding, that Council adjust the area leased to the Hutt Valley Tennis Association to enable a 12th tennis court to be developed on the site in the future, (as shown in purple on the plan in paragraph 5 of this report).

For the reason that the revocation and sale will have an overall positive impact on recreation facilities within the City.

 

Background

2.    Council has previously revoked the reserve status and sold in 2017 a part of Mitchell Park to a developer upon which a new health services facility, known as the Hutt Valley Health Centre, has been built. 

3.    The land was formerly occupied by the Naenae Bowling Club, but became surplus when the Club relocated to the new bowls facility developed at Walter Mildenhall Park.  Council sold the land on the basis that it had to be used for health related services.

4.    The Hutt Valley Health Centre development has been a success resulting in interest in development of additional facilities.  This has prompted an approach to Council to consider the sale of adjacent land for parking in support of the development of a second building on the original site.

5.    The new proposal is to sell an area of land of approximately 1640m2 of Mitchell Park currently leased to the Hutt Valley Tennis Association (HVT). A plan of the proposal is shown below, with the area of reserve to be revoked and sold, shown in green.

6.    The HVT Management Committee and its Mitchell Park Development Committee support the proposal on the basis that there would be an overall benefit to tennis.  This would mean Council agreeing to the net proceeds of sale being made available for the proposed re-development of tennis facilities including the covering of four courts and varying the leased area so that HVT can build a 12th court at some time in the future.

7.    HVT has also asked that if Council agrees to proceed with the proposal that it;

(i)      delays the formal consultation until February 2021 to enable it to call and hold a special meeting to inform its members;

(ii)     supports the resource consent for the indoor tennis court structure;

(iii)    acknowledges that components of the HVT development project will need to be deferred until HVT can raise the required shortfall in funding for delivery and

(iv)    releases the approved funding as soon as possible so that HVT can proceed to get the re-development proposal underway to avoid cost escalation with time.

8.    In order for Council to further this proposal, it will need to first initiate a proposal to revoke the recreation reserve status of the land, (as required by the Reserves Act 1977), and consider any objections to the proposal, before making a final decision which would then need to be ratified by the Department of Conservation. 

Discussion

9.    Mitchell Park is owned by Council in fee simple, is classified Recreation Reserve under the Reserves Act 1977 and is a high profile reserve with a sub-regional use, particularly in relation to its sporting activity.  The park has extensive tennis and squash facilities, rose gardens, specimen trees and amenity planting beds. The Park is managed under the Amenity Horticulture Reserves Management Plan.

10.  The proposed sale of land would not compromise the current use of the reserve.  While in the long term there would be a reduction in the overall amount of reserve space, this would be offset by enhancing the recreation potential of that part of the reserve that has traditionally been used for tennis and thereby for the benefit of the community.

11.  The Reserves Act 1977 requires that the proceeds of sale of reserve land that has had its reserve status revoked be used for the purposes of acquiring other reserve land or upgrading existing reserves for the benefit of the community.  The proposal to use the net proceeds to upgrade tennis facilities would meet this statutory requirement.

12.  The matters which have been raised by HVT as outlined in paragraphs 6 and 7 of this report are deemed acceptable. 

13.  Hutt Valley Health has indicated that use of the car parks by tennis would be permitted during weekends and evenings.

Options

14.  Council can decide to either initiate a proposal to revoke the reserve status for  further consideration or decline the offer and do nothing more.

Climate Change Impact and Considerations

15.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.

Consultation

16.  Public consultation will be completed as part of the revocation process.  This will involve publicly notifying Council’s intention to consider the proposal to revoke the reserve status and invite submissions on it. Carrying out the formal consultation once HVT has had the opportunity to outline the proposal to its members is a sensible approach.

17.  Separate consultation will be undertaken with mana whenua.

18.  Officers have discussed the proposal with representatives of HVT, though the matter has yet to be discussed with the wider membership.  This will occur through the consultation phase.

Legal Considerations

19.  The proposal will need to be processed in accordance with Section 24 of the Reserves Act.  This deals with the revocation of reserve lands. The process generally requires:

a.    Council initiating a proposal on the possibility of revoking the reserve status and disposing of reserve land.

b.    Publicly notifying the proposal and inviting objections/submissions.

c.     Collating objections/submissions and reporting results of these back to council with officers recommendations

d.    Council hearing submissions and further considering the proposal if submissions are received.

20.  A sale and purchase agreement will be entered into, subject to a Council resolution to sell, the reserve revocation being approved, subdivision and the use of the land for health related purposes including the provision of car parking.

21.  There are no section 40 Public Works Act offer back requirements to be met.

22.  It is proposed to leave the District Plan activity area as General Recreation at this stage and make the change to Community Health as part of the District Plan Review. This is acceptable to the purchaser.

Financial Considerations

23.  The land has been valued at $1.4M by Council’s valuers.  This is the amount which has been offered.

24.  It is estimated that up to $200k will need to be spent in undertaking the proposal mainly for legal and subdivision work to enable a boundary adjustment.  HVT has agreed to take on the tennis related site works needed to undertake the boundary adjustment.

25.  Council has budgeted $500k in the 2020/21 Annual Plan towards the HVT – Mitchell Park facility development.  It is proposed that the nett proceeds (around $1.3M) be made available in addition to this amount.  There would still be a shortfall to complete the development which would need to be raised by HVT.

Appendices

There are no appendices for this report.   

 

 

 

 

 

Author: Aaron Marsh

Team Leader Parks

 

 

 

Author: Bruce Hodgins

Strategic Advisor

 

 

 

 

 

 

Reviewed By: Andrea Blackshaw

Director Neighbourhoods and Communities

 

 

 

Approved By: Jo Miller

Chief Executive