statement of proposal property review - Palmerston North City Council

PALMERSTON NORTH CITY COUNCIL
STATEMENT OF PROPOSAL
PROPERTY REVIEW:
PROPOSAL FOR REMOVING RESERVE STATUS
AND SALE OF LAND.
DMS# 969036

DMS# 969036
PALMERSTON NORTH CITY COUNCIL

PALMERSTON NORTH CITY COUNCIL
INTRODUCTION:
This Statement of Proposal relates to the proposed sale of 15 properties and parts of properties that Council believes are not delivering
sufficient value to the community. Some of these properties are Reserves under the Reserves Act 1977, some are Parks as defined in the
Local Government Act 2002 and some other properties Council has owned for various purposes that are no longer required.
REASON FOR THE PROPOSAL:
Palmerston North City Council (Council) administers a large property portfolio. Many of these properties have multiple activities on them
including Plunket Rooms, community recreation and services groups.
Council is undertaking a review of its property holdings to ensure that it is getting value for the community from its properties or it has clear
reasons for holding properties that are not currently adding value. During the course of the review some properties have been identified that
have questionable return to the community. Council now wishes to consult the community on these pieces of land to learn if there are uses
being made of them Council is not aware of, what value the community places on having them in public ownership, or if any alternative uses
should be made of them. Council’s proposal is to consider the sale of these pieces of land and properties and apply those funds:
To reserve acquisition and development where the property or land being sold is either a reserve or a park.
To other uses where the property or land is not a reserve or park.
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Reserves Act 1977
Some of the properties have reserve status under the Reserve Act 1977. That legislation requires a particular process from Council, including
an initial resolution to revoke the Reserve status before the consultation begins, hearing views including objections, before making a decision.
The initial resolution to revoke the reserve status does not mean a commitment of Council to selling the land. Rather it is a signal to the
community to express their views and provide more information to Council to assist in Council’s decision making on the possibility of selling the
land. After giving consideration to the consultation Council is required to make a decision on whether or not to proceed with the proposed
revocation and an application to the Minister of Conservation.
If, after undertaking this process, any of the land in question is sold, then the proceeds from the sale of any Reserve properties are required to
be spent acquiring or developing other reserves as per the Reserves Act 1977.
Crown Land
Where land in this report was given to Council by the Crown, Council will return it to the Crown if required. If the Crown does not have a use for
the land then the Crown would sell the land and give half of the net proceeds to Council. If the land sold was a reserve the proceeds would be
used for acquiring more reserves or developing existing reserves.
Local Government Act 2002 (LGA) – Section 138 covering Parks.
Some land is acquired for or has been used as a park, “principally for community, recreation, environmental, cultural or spiritual purposes but
does not include land that is held as a reserve or part of a reserve under the Reserves Act 1977.” Where land is defined as a park under the
LGA then Council is also consulting to obtain people’s views on the proposal to sell land.
Public Works Act 1981
Where land was compulsory acquired by Council, then Council will meet its obligations under the Public Works Act 1981 to offer that land or
property back to the person it was acquired from, or their direct descendant, at its market value.
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Zoning:
The zones of the pieces of land concerned vary from Conservation and Amenity through to Rural and Residential. Council would propose the
rezoning of any land that was approved to be sold to a zone appropriate for its future use as part of the review of the District Plan.
Assumptions:
Costs included for any sale of the properties assume a 4% commission on sales to real estate agents. Council has successfully sold a number
of properties on or above market valuations through its experienced property staff. It is possible costs may be less for some properties.
Costs and income assume Council carries out its own subdivisions unless otherwise indicated. No estimate of the interest cost for subdivision
expenses has been made.
Use of Funds:
Council has approved the principle that funds generated from land that qualifies as a Park, as defined under the Local Government Act 2002,
shall be treated in the same manner as a Reserve under the Reserves Act 1977, and net proceeds from any Park sale shall be applied to
acquiring or developing other Parks or Reserves.
If, after considering the community information and feedback, any parks or reserves are resolved to be sold, then Council will call for
submissions on proposed uses of the funds for buying new or developing existing parks and reserves, and prepare specific programmes that
will identify where the funds were sourced from.
Funds from any land that is not determined to be a park or reserve will be used as Council determines.
THE PROPERTIES UNDER CONSIDERATION:
The specific land and properties being considered are:
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1. Springdale Reserve – part of
Springdale Reserve is a walkway connection which, in combination for a
leased area from Massey University, links through to old West Road. The
entrance is very wide and has an odd relationship with the walkway due to
relocation of the walkway that had previously run across private land.
The reserve entrance has a private right-of-way across it essentially
severing approximately 415 sq m of land on a slope that reads like a
private overgrown area from the road. It is not used nor adds particular
value to the walkway entrance.
A 415 sq m section could be subdivided off, and subject to appropriate
geotechnical design, accommodate a house.
Park under the Local Government Act?
Yes
Net proceeds would be used to acquire or develop other reserves or
parks.
Option One: Sell the land
Costs: Subdivision and sale $24,000
The neighbouring property has built two balconies
and the views from those areas may be affected by a
house were built on the site.
Some small loss in biodiversity.
Benefits: Estimated value $130,000
Other:
Some small saving on irregular maintenance.
Site slopes. Likely to require specific geotechnical
engineering design of any house built on the site
required.
Option Two: Retain the land.
Costs: Opportunity cost for use of net proceeds $106,000
Benefits:
Proposed
sale
Some minor maintenance costs.
Some minor biodiversity benefits.
Local amenity benefits for neighbouring properties.
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PALMERSTON NORTH CITY COUNCIL
2. Ruapehu Drive Reserve – 600 sq of
Council intends to form a walkway connection into the Titoki Walkway
which is currently being constructed from Cliff Road to Cashmere
Drive. However it does not require an entire section to complete this
link. Two to three metres wide walkway linkages are common in similar
circumstances.
The walkway connection would be retained on the southern side of the
property under the existing power poles.
Reserve under the Reserves Act?
Yes
Net proceeds would be used to acquire or develop other reserves.
Future walkway
Option One: Sell the land
Costs: Subdivision and sale $10,000
Benefits: Estimated value $150,000
Some small mowing savings.
Proposed sale
Option Two: Retain the land
Costs: Opportunity cost for use of net proceeds $140,000
Some minor maintenance costs.
Benefits: Some minor biodiversity benefits.
Local amenity benefits for neighbouring properties.
Other:
Resource consent including specific geotechnical engineering design of any house built on the site required.
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PALMERSTON NORTH CITY COUNCIL
3. Bowen Street - Linton
Council owns 2 lots with a combined 4,578 sq m in Linton of
Bowen Street. The land has been grazed by the neighbouring
farmer since it was no longer needed as a hydatid dosing strip.
The Ministry for Primary Industries risk assessment team
confirms there is no risk or issue for any future use.
No known alternative uses are foreseen or suggested for this
land. Preliminary investigations suggest if it were rezoned
during the review of the District Plan it is a viable house site.
The rateable value of similar land as a house lot in the area is
$160,000 although a discount due to some of parcels contour is
likely.
Proposed
sale
Reserve under the Reserves Act or Park under Local
Government Act? No
Net proceeds could be used for any purpose.
Option One: Sell the land
Costs: Sale $5,000
Benefits: Estimated value $95,000
Option Two: Retain the land
Costs: Opportunity cost for use of net proceeds $90,000
Benefits: May be able to generate some small grazing lease income.
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PALMERSTON NORTH CITY COUNCIL
4. Panako Reserve – part of
Council owns a vacant section next to the Girl Guide Hall in
Panako Place. The Girl Guides were mowing but have no
interest in maintaining it or using it.
The land is in one overall parcel with that occupied by the Girl
Guides but could be separated off and sold.
Acquired from the Crown, Council would only be entitled to
50% of the net proceeds of any sale.
The site had been considered for a community garden but
proposals for community gardens in the area have been for
on Awapuni Park which benefits in having a community
centre, playground, and public toilets.
Reserve under the Reserves Act?
Yes
Net proceeds would be used to acquire or develop other
reserves.
Proposed
sale
Option One: Sell the land
Costs: Subdivision and sale $10,000
Benefits: Estimated value $110,000
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Crown derived land, proceeds split:
- Return to Council $50,000
- Return to the Crown $50,000
Some mowing savings.
Option Two: Retain the land
Costs:
Benefits:
Opportunity cost for use of net proceeds $50,000 on
other reserves
Provides an option for unforeseen future community
facilities.

PALMERSTON NORTH CITY COUNCIL
5. Pioneer Reserve – 3,650 sq m of
Pioneer Reserve provides a buffer strip between Pioneer
Highway and housing in the cul-de-sacs. It provides an offroad
walking and cycling link (unpaved) through to the
Mangaone Stream paths.
Rangitaane Park 380 m walking distance to the south.
The former Rangitane kainga (unfortified settlement) of
Kikiwhenua is situated on the western side of Managoe and
involved uses on the eastern side as well. As such it is
expected Rangitane will have an interest.
It is possible to provide for 6 sections of 500 sq m to 625 sq m
while retaining some of the existing buffer spaces and walking
access.
Easements would be used to protect access to storm water
and sewer pipes for renewal and maintenance.
Shared driveways would need to be constructed in the order of
50 m to each of the areas.
Proposed sale
Proposed
sale
Reserve under the Reserves Act? Yes
Net proceeds would be used to acquire or develop other reserves.
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PALMERSTON NORTH CITY COUNCIL
Option One: Sell the land as shown on map
Costs: Subdivision and sale $180,000
Reduction in amenity of walking access.
Reduced amenity for neighbouring properties.
Benefits: Estimated value (before costs) $600,000
Some minor saving in mowing costs.
Option Two: Sell smaller areas
Council could consider a smaller area. Layout would need to accommodate useful building platforms and subdivision engineering standards.
The costs and benefits would vary depending on what area was proposed.
Costs:
Benefits:
Costs would depend on the areas proposed and could range from $20,000 for a single section to $180,000 as described in
Option One.
Income for use on reserve development (after deducting costs) would depend on the areas proposed and could range from
$70,000 for a single section to $420,000 as described in Option One.
Some minor savings in mowing costs.
Option Three: Retain the land
Costs:
Benefits:
Opportunity cost of up to $420,000 for use on other reserves.
Retains wide accessway.
Retains current amenity levels.
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PALMERSTON NORTH CITY COUNCIL
6. Waterloo Park/Waterloo Crescent reserves – part of
Waterloo Park functions as both a neighbourhood reserve and a
sportsfield. Technically part of the Waterloo Crescent Reserves but
appearing to be part of Waterloo Park the south western entrance
to the park includes a rectangular piece of land that adds little if any
value to the playing spaces.
It adds amenity to the street scape but there is an abundance of
open space in the area including the riverside environments over.
Signage at park entrance and a pram crossing would be needed if a
section were sold.
Reserve under the Reserves Act?
Yes
Net proceeds would be used to acquire or develop other
reserves.
Proposed
sale
Derived from the Crown by way of compensation in a land
exchange for a school site. No requirement to return to the Crown.
Option One: Sell the land
Costs: Subdivision and sale $16,000
Signage and pram crossings $ 5,000
Reduction in visibility of park entrance.
Reduction neighbours and local streetscape amenity.
Benefits: Estimated value $140,000
Some small mowing savings.
Option Two: Retain the land
Costs:
Benefits:
Opportunity cost of $119,000 for other reserves
Minor mowing costs.
Retains wide entrance to the Waterloo Park.
Retains existing neighbours and streetscape
amenity.
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PALMERSTON NORTH CITY COUNCIL
7. Hind Park/Willowbank Reserve – part of
Hind Park or Willowbank Reserve is an open space connecting
Waterloo Crescent and Hind Park to the Manawatu Riverside
environments. It provides amenity to the local streetscape but has
poor drainage, getting wet in the winter making mowing difficult.
The predominant use is as an access from the car park through to
the large riverside reserve and shared path network.
It would be possible to sell a portion of the reserve and still have
wide walkway connections and some open space on top of the
significant reserves in the wider area, including at Waterloo Park
and the Manawatu River.
Reserve under the Reserves Act?
Yes
Net proceeds would be used to acquire or develop other
reserves.
Proposed
sale
Derived from the Crown by way of compensation in a land
exchange for a school site. No requirement to return to the Crown.
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PALMERSTON NORTH CITY COUNCIL
Option One: Sell 2,800 sq m fronting Hind Place
Costs: Subdivision and sale $166,500
Signage improvements $ 5,000
Loss of neighbours, street and park amenity.
Reduced visibility of car park and paths.
Benefits: Estimated value (before costs) $800,000 for purchase and development of other reserves
Some small mowing savings.
Option Two: Sell a smaller area
Council could consider a smaller area. The area that could be sold could range from 350 sq m to 2,800 sq. Layout would need to
accommodate useful building platforms and subdivision engineering standards. The costs and benefits would vary depending on what area
and was proposed.
Costs:
Loss of neighbours and streetscape amenity.
Reduced visibility of car park and paths.
Benefits:
Estimated value range depending on area and size of sections. Say net $130,000 per section
Some small mowing savings.
Option Three: Retain the land
Costs:
Benefits:
Opportunity cost of up to $628,500 for use on other reserves
Minor mowing costs.
Retains existing neighbours and streetscape amenity levels.
Retains visibility of carpark and paths.
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PALMERSTON NORTH CITY COUNCIL
8. Hardie Street Park – part of
Situated on the corner of Hardie Street and Fitzherbert Avenue is
Hardie Street Park. Council is not aware of any community use of the
Park.
There are extensive reserves in the area, with the Centennial Drive
Reserves and Manawatu River environments
The reserve adds some amenity value to the entrance to the city,
although this entrance has abundant reserves and the physical
environment of the Victoria Esplanade, Fitzherbert Park and the
Manawatu River provide the major backdrop.
Reserve under the Reserves Act?
Yes
Net proceeds would be used to acquire or develop other
reserves.
May be derived from the Crown 1 .
Proposed
sale
Option One: Sell all of the land shown on the map
Costs: Subdivision and sale $20,000
Loss of some City entrance and neighbours amenity.
Benefits: Estimated Council value if Crown derived $200,000
Estimated value if not Crown derived to $400,000
Mowing, garden maintenance and seat renewal
savings.
1 Unable to decipher a prior reference to title 14/9 to date.
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PALMERSTON NORTH CITY COUNCIL
Option Two: Sell a portion of the land
An alternative would be to sell a smaller proportion of the land. The costs and benefits would depend on the area.
Costs:
Benefits:
$15,000 to $20,000 depending on areas proposed.
Range from $100,000 if Crown derived land and one section subdivided off to $380,000 if two sections and it is not Crown
derived land.
Depending on area subdivided off an area of planting could be retained to provide City entrance amenity.
Option Three: Retain the land
Costs: Opportunity cost for use of net proceeds $85,000 2 to $380,000 on other reserves
Minor mowing costs.
Benefits: Retains existing reserve, city entrance and neighbours amenity.
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PALMERSTON NORTH CITY COUNCIL
9. Salisbury Street Reserve – Ashhurst
Salisbury Reserve is a triangular reserve down a long narrow
access off Salisbury Street.
The reserve is currently required to meet Councils objective
of flat open space within 500 m walk of all residentially zoned
land for the houses on Salisbury Street between Wyndham
Street and The Terrace, as well as those along the Terrace.
It is possible to provide a more accessible and higher quality
reserve at the end of Wyndham Street that would have be
linked to walkway networks.
There is no title available for the land. CT 59/28 was issued
in the late 1800’s records that Lot 8 DP 22852 was vested in
Her Majesty the Queen as recreation reserve. This appears
to mean that technically the land is in Crown ownership. This
matter will need to be resolved.
There is a sewer Main on eastern boundary and sewer
service connections in from neighbouring properties to the
sewer main that would require protection.
Northern corner of the reserve is probably the easiest access
point for future sewer renewals under private land of 200 and 194
Salisbury Street, which appear to have relatively poor access to
their rear sections where the sewer is located.
Proposed
sale
Proposed
new reserve
Park under the Local Government Act?
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Yes
Funds are would be used to develop a new reserve of the same
size off the end of Wyndham Street.

PALMERSTON NORTH CITY COUNCIL
Option One: Sell the land
Costs: Subdivision and sale $65,000
Benefits:
Loss of amenity for immediate neighbours.
Sewer pipes in private land.
Estimated value $200,000 with net proceeds split if
Crown agrees, $67,500 to Council.
Option Two: Retain the land
Costs:
Benefits:
Opportunity cost of improved accessibility and quality
of reserve.
Retains sewer connections in public land.
Amenity for the immediate neighbours of the existing
reserve is retained.
Proceeds would be used to develop a more
accessible new reserve at the end of Wyndham
Street.
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PALMERSTON NORTH CITY COUNCIL
10. Durham Street Road Reserve – Ashhurst – part of
There are large unformed legal roads used as
walkways along the terrace in Ashhurst. The
unformed road reserve next to number 78
Durham Street could be partially closed,
retaining a walkway space and open space,
yielding say four sections.
There was a landfill in the area in the Oroua
County Council days. The only records found to
date is a 1972 letter confirms the dumping of
top soil and pit metal. Any housing on the site
would require specific engineering design.
Proposed
sale
Park under the Local Government Act? Yes
Net funds would be spent on acquiring or
developing reserves and parks.
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PALMERSTON NORTH CITY COUNCIL
Option One: Sell the land as shown on the map
Costs: Subdivision and sale $116,000
Impacts neighbours views.
Less visible walkway
Risk geotech and/or soil testing finds land unsuitable
Benefits: Estimated value $340,000 for use on other parks or reserves.
Minor saving in mowing costs
Option Two: Sell a portion of the land
Council could sell a part of the area shown rather than all of it. The costs and benefits would depend on the area proposed.
Costs: Range from $30,00 to $100,000
Impacts neighbours views.
Less visible walkway
Risk geotech and/or soil testing finds land unsuitable
Benefits: Range from $85,000 to $255,000
Option Three: Retain the land as is
Costs: Opportunity cost for use of net proceeds $116,000
Minor mowing costs not saved.
Benefits: Retains neighbours views and existing open space amenity.
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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.
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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.

PALMERSTON NORTH CITY COUNCIL
12. Deer Park Ashhurst
Originally set up as a park to let people look at deer close up
when they were a farming novelty. Council has not collected any
income nor incurred any expenses since taking over the park
from the Oroua County Council.
The land occupied by the grazer includes the 36 m plus wide
road reserve along the terrace with a narrow walkway currently
provided at that point.
There are some mature totara trees on the site.
Proposed
sale
Park under Local Government Act?
Yes
Funds proposed to be used for acquisition or development of
other reserves or parks.
Option One: Sell the land
Costs: Sale $20,000
May impact neighbours amenity.
Increased mowing costs $1,000 / year
Mature totara trees shift to private ownership.
Benefits: Estimated value $400,000 3
Wider walkway environment.
Loss of potential grazing income $2,800 / year
Option Two: Retain the land
Costs: Opportunity cost for use of net proceeds $295,000
Minor mowing costs not saved.
Benefits: Retains neighbours amenity.
Mature totara trees stay in public ownership.
3 Assumes sale as is rather than Council subdivision.
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PALMERSTON NORTH CITY COUNCIL
13. Amberley Avenue Reserve – western side
The land was derived from the Crown.
This reserve is zoned Conservation and Amenity but has no plans for
development. There was an approach to put a Cadets building on it
several years ago but the land is not suitably zoned and nothing came
of it.
There is other open space and walkways in the area and to the best
of Council knowledge this reserve is poorly, if at all, used.
Reserve under the Reserves Act?
Yes
Funds must be used for the acquisition or development of other
reserves.
Proposed
sale
Option One: Sell the land
Costs: Subdivision and sale $20,000
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Loss of some amenity value to the Mangaone
walkway on the other side of the stream.
Loss of some street and neighbours amenity.
Benefits: Estimated value $140,000
Net proceeds split between the
Crown and Council,
Some small saving on mowing
$60,000 each
Option Two: Retain the land
Costs: Opportunity cost for use of net proceeds $60,000
Minor mowing costs not saved.
Benefits: Retains neighbours,street and walkway amenity.

PALMERSTON NORTH CITY COUNCIL
14. Andrew Young Street Carpark
Council owns a 977 sq m, 24 car, parking area in Andrew Young
Street. There are a large number of easements in place across the
land in favour of the land occupied by Harvey Norman effectively
meaning it can only ever be used as a car park for Harvey Norman.
Income:
Expenditure:
$14,700 per year
$3,200 per year.
Renewals: Carpark surface in 20 years say $35,000
Option One: Sell the land
Costs: $2,500
Loss of net income of $11,500 per year.
Benefits: $200,000 to use for any purpose
Reduction in future renewals programmes.
Proposed
sale
Option Two: Retain the land
Costs:
Benefits:
Future renewals requirements.
Retains operational income.
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PALMERSTON NORTH CITY COUNCIL
15. George Street Shops
Council owns two shops in one title on the western side of
George Street, at 52 to 54 George Street. They have been the
subject of a number of purchaser enquiries over the years.
A market valuation suggests they are currently worth $300,000.
They are currently rented for $26,920 excl GST plus outgoings
and only minor maintenance is currently required.
Unlike the shops under the Regent Theatre, Civic Administration
Building and Library these shops are not strategic to a wider
property.
Option One: Sell the land
Costs: $2,500
Benefits:
Loss of net income of $25,000 per year.
$300,000 capital income to use for any purpose.
Reduction in future renewals programmes.
Proposed
sale
Option Two: Retain the land
Costs:
Benefits:
Future renewals requirements.
Opportunity cost capital use elsewhere.
Retains operational income.
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PALMERSTON NORTH CITY COUNCIL
Consultation process
Anyone can make a submission about the proposals described in this document. We encourage anyone with an interest in the issues raised in
this proposal to make a submission.
This Statement of Proposal, a Summary of Information, and the submission form can be found at:
• Palmerston North City Council website http://www.pncc.govt.nz/YourCouncil/CouncilActivities/PublicConsultation/
• Customer Service Centre, Palmerston North City Council, The Square, Palmerston North;
• City Library, The Square, Palmerston North, and the libraries at Ashhurst, Awapuni, Roslyn, Linton and Highbury; and
• Ashhurst Services Delivery Centre, 122 Cambridge Avenue, Ashhurst.
You are also entitled to appear before the Council and speak to your submission. Please indicate on your submission form whether you wish to
do this. The Council intends to hear submissions on this proposal at the Finance and Performance Committee meeting scheduled for 15 July
2013. The date and time for hearings will be confirmed in the letter acknowledging your submission, and will also be advertised in the
Manawatu Standard and Tribune newspapers.
To get your submission to us, either:
Mail to: Property Review Submissions, Governance and Support Team Leader, Palmerston North City Council, Private Bag 11034,
Palmerston North 4442
Deliver to:
Email to:
Palmerston North City Council Customer Service Centre, 32 The Square, Palmerston North
submission@pncc.govt.nz (put Property Review Submissions in the subject)
Phone: 06 356 8199 Fax to: 06 355 4115
The submission period runs from Friday 31 st May 2013
until 4pm on Friday, 5 th July 2013.
Please note that all written submissions, including the contact details on the submission, will be made available to the public and media and on
the Council’s website, unless you specifically request that your contact details are kept private. For further information on this consultation
please phone the Council on 06 356 8199 or email us at info@pncc.govt.nz
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