statement of proposal property review - Palmerston North City Council

PALMERSTON NORTH CITY COUNCIL
11. Works Pit - Ashhurst.
Originally this land was the depot facilities for the then Oroua County
Council.
One corner of the land is occupied by a Red Cross second hand store in
a rundown building owned by Council. Council has assumed the
demolition of this building and is only carrying out reactive maintenance.
The timing of disposal of the building is to be driven by the Red Cross
and/or the building being condemned.
The balance of the land has some use as an informal thoroughfare and
truck parking. It has been the site of some proposed dirt jumps/bmx
areas in the past which have not amounted to anything. Other land
could be used for similar activities if those projects pushed ahead again.
Proposed
sale
Reserve under the Reserves Act or Park under Local Government
Act? No
Funds can be used for any purpose.
Option One: Sell the land
Costs: Subdivision and sale 2 $210,000
Impacts neighbours amenity.
Loss of informal thoroughfare and truck parking.
Benefits: Estimated value $505,000
Mowing saving approximately
$1,200 per year
2 Assumes Council acts as the developer and subdivides into 6 large
sections, includes interest on borrowings for development of $26,000
taking 3 years to sell the sections.
DMS# 969036
Option Two: Retain the land
Costs: Opportunity cost for use of net proceeds $295,000
Benefits:
Minor mowing costs not saved.
Retains neighbours amenity and truck parking
space.