Report to COUNCIL for decision

Transcription

1 11/584 Subject: Prepared by: Leasing Decisions Angus Glengarry (Community Property Officer) Meeting Date: 29 September 2011 Report to COUNCIL for decision SUMMARY The purpose of this report is to seek Council approval for two new lease agreements. It is proposed that the Council enters into an agreement with Eastland Junior Football Incorporated for part of the clubrooms situated on Childers Road Reserve. Approval is also sought for Te Puawaitanga o Ruatoria Trust to lease part of a recreation reserve in Ruatoria. The reserve is situated behind a block of Housing New Zealand homes in Manutahi Drive where the Trust wishes to establish a community orchard. These proposals need to be approved by Council as staff do not have the delegated authority to enter into lease agreements with a term exceeding five years. The Department of Conversation has given its approval. The options have been considered, together with the legal and financial implications, and there is nothing to impede the Council from entering into the new agreements. RECOMMENDATIONS That the Council 1. receives the report 2. agrees to enter into a new lease with Eastland Junior Football Incorporated for part of the Childers Road Reserve clubrooms. The term of the lease is five years with one, five year right of renewal. The annual rental shall be $1,500, excluding GST, to be reviewed every five years based on relative movements in the Consumer Price Index. 3. agrees to enter into a new lease with Te Puawaitanga o Ruatoria Trust for part of the recreation reserve land in Ruatoria. The term of the lease is five years with two, five year rights of renewal. The annual rental shall be $255, excluding GST, to be reviewed every five years in accordance with the GDC Rental Policy. Angus Glengarry Community Property Officer Peter Higgs Group Manager Engineering and Works Keywords: Lease; Childers Road Reserve, Ruatoria; Junior Football; Orchard DOCS_n217621_v1 Page 1 of 4

2 1. BACKGROUND 1.1 Eastland Junior Football Incorporated On 2 August 2011 the Council received a proposal from Eastland Junior Football Incorporated (Junior Football) to take over the lease for part of the clubrooms on Childers Road Reserve. Gisborne City Association Football Club (Gisborne City AFC) has found that its lease arrangements are unsustainable and has recently surrendered the lease for its part of the clubrooms. Junior Football is the largest football club in Gisborne and it has been looking for a base to run coaching, representative and elite academy programmes. The changing rooms, committee room, on-site gear storage and lighting facilities make the Carnarvon Street clubrooms a perfect fit. As Junior Football sessions tend to be afternoon based, the club would share the building with other clubs for evening training, ensuring that the facilities are used to a maximum. A site plan of the leased area is shown in Appendix Te Puawaitanga o Ruatoria Trust The Trust has approached the Council to carry out a two stage project (refer Appendix 3). The first was a small scale project to plant a community orchard on Council land at 7 College Road in Ruatoria. The Trust was granted a Licence to Occupy on 1 October 2010 and the site has subsequently been planted in a variety of fruit trees. The Council also contributed 20 half round used fence posts and 12 trees towards the project. The second and larger scale project is a request to lease part of the recreation reserve by Manutahi Drive. The Trust intends to develop the land into community orchard. Officers have been reviewing the current suite of township plans. During recent community engagement on the Ruatoria Plan, the community was asked to prioritise the key projects for the next three year period. The extension of the community orchard was seen as one of the top priorities. It will be included in the updated Ruatoria Township Plan due out within the next month. The leased area is shown outlined and hatched in red in Appendix DISCUSSION AND OPTIONS The following options have been considered: Let the tenants operate without a formal agreement in place. This option has been rejected as it would be inconsistent with other recent leasing decisions. Section 40 of the Reserves Act 1977 also requires the Council to administer, manage and control in accordance with the provisions of the Act. To allow occupation by an organisation without the controls of a lease could lead to a breach of this obligation. Have a registered valuer ascertain a market rent for the site and enter into a new agreement at a commercial level. This option has been discounted as the tenants are providing a valuable service to their local communities and are clearly not operating as commercial entities. It would be inappropriate to apply strict market principles in these instances. DOCS_n217621_v1 Page 2 of 4

3 Enter into a new lease and determine the rental in accordance with the Council s Reserves Rental Policy. This is the preferred option as it is consistent with the other recent leasing decisions. A lease agreement gives the tenants security of tenure over the long term which may assist them when applying for grant funding. A lease also clearly defines the maintenance obligations between the parties. 2.1 Te Puawaitanga o Ruatoria Trust The Trust has requested that the Manutahi Drive reserve be leased for a peppercorn rental. Whilst the Trust, like many other organisations, makes a contribution to community well-being, the Council has a policy for establishing rents for the occupation of Council managed reserves. It would be unfair on other organisations who are currently paying site rentals under the policy to allow the Trust to occupy the site free of charge. If the Council were to make an unjustifiable exception it may set a precedent for others to follow. The Trust can make an application to the Finance & Monitoring Committee for a grant in lieu of rent if it considers the rent is not manageable. 3. SIGNIFICANCE These decisions are not significant in terms of the Council s Significance Policy and do not invoke the special consultative process. 4. CONSULTATION 4.1 Eastland Junior Football Incorporated The proposed lease was publicly notified in the Gisborne Herald on 24 August 2011and details of the proposal were posted on the Council website. No submissions were received. 4.2 Te Puawaitanga o Ruatoria Trust The leasing proposal was advertised in the Gisborne Herald on 19 January No submissions were received. A letter outlining the proposal was sent to Te Runanga o Ngati Porou who responded in support of the application. 5. COMMUNITY OUTCOMES Leasing of land and clubroom facilities contributes to the community s wellbeing through indirect investment in sports and recreation. This is consistent with the community s primary outcomes for a vibrant and healthy Tairawhiti. 6. LEVELS OF SERVICE Not relevant to this report. 7. FINANCIAL 7.1 Eastland Junior Football Incorporated Junior Football has agreed to purchase four floodlights and other chattels from Gisborne City AFC. This will provide Gisborne City AFC with sufficient funds to repay its outstanding rent arrears and enable the club to wind up its affairs in an orderly manner. DOCS_n217621_v1 Page 3 of 4

4 7.2 Te Puawaitanga o Ruatoria Trust The Council has been maintaining the reserve to standard that complies with the bylaws. The lease will set out the maintenance obligations of the parties including fencing, mowing and the removal of green waste. 8. LEGAL 8.1 Eastland Junior Football Association - Childers Road Reserve The clubrooms are situated on land legally described as Part Sections 72A, 75A TN of Gisborne. Childers Road Reserve was acquired by Crown grant in 1880 pursuant to section 6 of the Public Reserves Act 1878 and is vested in trust as an endowment. It is not a reserve under the Reserves Act The Council may enter into a lease agreement under section 12 of the Local Government Act Te Puawaitanga o Ruatoria Trust - Ruatoria Recreation Reserve The reserve is legally described as Lot 33 DP The land was classified as recreation reserve in 1985 and is subject to the provisions of the Reserves Act Council may enter into an agreement under section 73(3) of the Act. As there is no management plan for this reserve and the orchard is not an existing use, the Department of Conservation is required to give its prior consent to the granting of this lease. This was obtained on 15 July POLICY Leasing to incorporated societies is consistent with Council policies. 10. APPENDICES Appendix 1 - Junior Football s leased area Appendix 2 - Te Puawaitanga o Ruatoria Trust leased area Appendix 3 - Te Puawaitanga o Ruatoria Trust proposal DOCS_n217621_v1 Page 4 of 4

5 Appendix 1

6 Appendix 2

7 Te Puawaitanga o Ruatoria Trust Ruatoria Community Fruit Orchard Project Proposal and Action Plan Submitted by Marijke Warmenhoven (August 2010) Te Puawaitanga o Ruatoria, incorporated as a Charitable Trust in 1996, was established to facilitate the following aims: As representative of Ruatoria residents to liaise with Gisborne District Council to ensure quality management of Ruatoria township council matters To lead beautification projects in conjunction with other Ruatoria Groups. To progress social service matters to benefit Ruatoria based whanau. To support collaborative community action to progress the health and wellbeing of children and whanau within the community of Ruatoria. Carry out charitable activities that enhance the well being of Ruatoria residents and their community. Assist with the implementation of the 20 Year Ruatoria Township Plan. Purpose of the project The purpose of the project is to Strengthen Community Participation and Action Encourage sustainability, resourcefulness, healthy eating and healthy living for whanau in the Ruatoria Community. This proposal is for the establishment of Community Fruit Orchards in Ruatoria. It is intended that the orchard will be planted, nurtured and maintained by adjacent residents of the community, on two sections of barren land owned by the Gisborne District Council (see Diagram 1 and Diagram 2). Additional to the health and social benefits of such a project, it would also assist in beautification of two parcels of Gisborne District Council land that are currently unkempt.

8 Diagram 1: Aerial photo of College Rd, Kararaina Ave and Manutahi Drive. The vacant section, 7 College Rd is highlighted in blue.

9 Diagram 2: Highlighted in blue is the parcel of land parallel Manutahi Drive proposed for the medium term project. Currently it is unkempt and requires fencing.

10 Scope of the project The project will include a short term project and a medium term project. The short term project is proposed for 7 College Rd, Ruatoria and the medium term project is to n be carried out on land adjacent Manutahi Drive (see Diagram 1 and Diagram 2). The larger parcel of land needs to be fully fenced. For the purpose of this proposal and Action Plan we intend to start with 7 College Rd (Short term plan). The College Rd property needs the front and back fences rebuilt only. The side fences are relatively new, recently built around the two Housing New Zealand homes adjacent, on either side of the property (refer to photos, Diagrams 3 and 4). It is intended that families and residents living on College Rd and Kararaina Ave, be approached kanohi ki te kanohi to gauge their interest to participate and support the project. It is proposed that each household will receive a fruit tree and each household will be responsible to plant, nurture and maintain their fruit tree. This will assist with buy in from the community which is essential for the success of the project now and long term. Diagram 3: Street side view of 7 College Rd, Ruatoria

11 This proposal was discussed at the Te Puawaitanga o Ruatoria, monthly hui in July In attendance was GDC Parks & Reserves Manager, Terry Mc Millan. It was also mentioned that resources will be provided by Gisborne District Council, if available, Te Puawaitanga o Ruatoria and any other organisations, businesses and groups willing to participate in the project. The project will then be promoted via Radio Ngati Porou and local notice board. Te Puawaitanga o Ruatoria have put in an application for funding to Te Puni Kokiri for a Mara Kai grant to help resource this project. The grants are up to $2,000. Diagram 4: Back view of 7 College Rd, Ruatoria. Existing fencing is part standing and needs replacement.

12 ACTION PLAN Action Steps What will be done? Step 1 Discuss and approve the idea of the project. Step 2 Secure a licence or a letter from GDC to utilise both properties for the project. Step 3 Resources and funding sought and approved. Step 4 Gauge Community participation and engagement Step 5 Commence tidy up and fencing of 7 College Rd Step 6 Blessing and planting of fruit trees Responsibilities Who will do it? TPoR Trustees, Community, Terry Mc Millan and Vance Walker (GDC) Timeline By When? Resources (a) Available (b) Need 14 th July 2010 (a) Human (b) Financial and property Terry Mc Millan August 2010 (a) Human (b) Financial and Property Terry Mc Millan, GDC Marijke Warmenhoven TPoW Trustees TPoR Trustees M.Warmenhoven GDC, TPoR Trustees, Community, M.Warmenhoven Community, Trustees, GDC TPoR August/ September 2010 September/October 2010 October 2010 Fencing materials and tools. Human resources October/November 2010 Potential Barriers Land reserved for other purposes not known to public. Lack of financing. No buy in from community. Land not available for the purpose of the project Financial No budget with GDC. TPK Mara Kai grant unsuccessful. No Budget with TPoR Need this proposal No interest from to present to community community participants Tools (spades, forks) Compost and water Human resources No budget for fencing No participation Bad weather for planting No resources Communication Plan Meeting held, project discussed by Trustees and GDC officials. Project accepted in principle at hui. Terry Mc Millan to forward letter (or licence) to Marijke Warmenhoven approving use of GDC properties. Terry Mc Millan and M. Warmenhoven TPoW Trustees updated at TPoW September hui. Marijke Warmenhoven, TPoR Trustees and community GDC, Community, TPoR Trustees, M.Warmenhoven GDC, Community, TPoR Trustees, M.Warmenhoven