AGENDA
Ordinary meeting of the
Commercial Subcommittee
Thursday 18 June 2015
Commencing at at the conclusion of the Audit, Risk and Finance Subcommittee meeting
Ruma Mārama, Floor 2A
Civic House
110 Trafalgar Street, Nelson
Membership: Mr John Murray (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Luke Acland and Gaile Noonan, and Mr John Peters
Guidelines for councillors attending the meeting, who are not members of the Committee, as set out in Standing Orders:
· All councillors, whether or not they are members of the Committee, may attend Committee meetings (SO 2.12.2)
· At the discretion of the Chair, councillors who are not Committee members may speak, or ask questions about a matter.
· Only Committee members may vote on any matter before the Committee (SO 3.14.1)
It is good practice for both Committee members and non-Committee members to declare any interests in items on the agenda. They should withdraw from the table for discussion and voting on any of these items.
Commercial Subcommittee
18 June 2015
Nil
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M1198
Recommendation
THAT the minutes of the meeting of the Commercial Subcommittee, held on 5 May 2015, be confirmed as a true and correct record.
6. Status Report - Commercial Subcommittee - 18 June 2015 10 - 11
Document number R4391
Recommendation
THAT the Status Report Commercial Subcommittee 18 June 2015 (R4391) and its attachment (A1368654) be received.
7. Stoke Community and Sports Facility, Cafe 12 - 20
Document number R4329
Recommendation
THAT the report Stoke Community and Sports Facility, Cafe (R4329) and its attachment (A1368398) be received.
The proposed Commercial Subcommittee meeting dates for 2015 are:
Thursday 30 July, following a meeting of the Audit, Risk and Finance Subcommittee that commences at 1pm
Thursday 10 September, following a meeting of the Audit, Risk and Finance Subcommittee that commences at 1pm
Wednesday 14 October, 9am
Thursday 12 November, following a meeting of the Audit, Risk and Finance Subcommittee that commences at 9am
Public Excluded Business
Recommendation
THAT the public be excluded from the following parts of the proceedings of this meeting.
The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Commercial Subcommittee Meeting - Public Excluded - 5 May 2015 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities. |
10. Re-admittance of the public
Recommendation
THAT the public be re-admitted to the meeting.
Minutes of a meeting of the Commercial Subcommittee
Held in Ruma Mārama, Level 2A, Civic House, 110 Trafalgar Street, Nelson
On Tuesday, 5 May 2015, commencing at 1.08pm
Present: Mr J Murray (Chairperson), Her Worship the Mayor R Reese, Councillor G Noonan, and Mr J Peters
In Attendance: Councillor B McGurk, Group Manager Infrastructure (A Louverdis), Group Manager Strategy and Environment (C Barton), Manager Administration (P Langley), and Administration Adviser (G Brown)
Apology: Councillor L Acland
The meeting adjourned at 1.08pm and resumed at 4.05pm
1. Apology
|
Resolved COM/2015/001 THAT an apology be received and accepted from Councillor Acland. Peters / Noonan Carried |
2. Confirmation of Order of Business
There was no change to the order of business.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
Governance
5. Nelson City Council Forestry Estate Review
Document number R4173, agenda pages 5 - 17 refer.
Group Manager Strategy and Environment, Clare Barton, and Manager Environment Programmes, Dean Evans, presented the report.
In response to a question, Mr Evans said a budget review was not currently included as part of the Forestry Estate review. Ms Barton added that the Forestry Estate review could be partly funded by Project Maitai.
It was discussed that it would be beneficial to find out how much Council had invested in forestry and what returns on investment were likely to be into the future.
In response to a question in relation to the reference to the loan amount of $2.1 million in attachment 1, Ms Barton advised that these figures still needed to be investigated.
There was a concern raised about the reference in attachment 1 to no expectation of a return on investment. Ms Barton advised the forestry infrastructure was originally established for a variety of reasons such as amenity and control of runoff.
In response to a question, Ms Barton advised that additional resources may be required if a specific skill set was needed for the review. It was noted that it would be worth speaking with consultants about forestry ownership and investments.
In response to a further question, Ms Barton clarified that the statement in 4.1.1 of the officer report was related to findings from a Cawthron Report.
In response to a question, Mr Evans advised the Forestry Estate review would be considered as part of the Nelson Plan review in relation to the land use and whether it was appropriate.
It was suggested that a commercial approach needed to be taken starting by considering why Council originally purchased the forestry land and then consider what its future use should be. It was said that there would only be three outcomes from the review, sell it, lease it, or let it regenerate.
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Resolved COM/2015/002 THAT the report Nelson City Council Forestry Estate Review (R4173) and its attachment (A1345166) be received; AND THAT the Nelson City Council forestry estate review proceeds with further information being gathered and a recommendation and possible actions for Nelson City Council forestry activities to be brought to the Commercial Subcommittee by August 2015. Peters / Noonan Carried |
6. Exclusion of the Public
|
Resolved COM/2015/003 THAT the public be excluded from the following parts of the proceedings of this meeting. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: Noonan / Peters Carried |
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Property Assets Review
|
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
The meeting went into public excluded session at 4.28pm and resumed in public session at 5.23pm.
7. Re-admittance of the Public
|
Resolved COM/2015/004 THAT the public be re-admitted to the meeting.
Murray / Peters Carried |
There being no further business the meeting ended at 5.23pm.
Confirmed as a correct record of proceedings:
Chairperson
Date
|
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Commercial Subcommittee 18 June 2015 |
REPORT R4391
Status Report - Commercial Subcommittee - 18 June 2015
1. Purpose of Report
1.1 To provide an update on the status of actions requested and pending.
2. Recommendation
|
THAT the Status Report Commercial Subcommittee 18 June 2015 (R4391) and its attachment (A1368654) be received.
|
Shailey McLean
Administration Adviser
Attachments
Attachment 1: Status Report - Commercial Subcommittee - June 2015
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Commercial Subcommittee 18 June 2015 |
REPORT R4329
Stoke Community and Sports Facility, Cafe
1. Purpose of Report
1.1 To seek advice to guide the Community Services Committee regarding whether to include / or not a commercial space - Café, within the Stoke Community and Sports Facility.
2. Delegations
2.1 The Commercial Subcommittee is delegated to consider matters of commercial activities relating to Council activities.
3. Recommendation
|
THAT the report Stoke Community and Sports Facility, Cafe (R4329) and its attachment (A1368398) be received. |
4. Background
4.1 Work on the Stoke Community and Sports Facility, Greenmeadows project is well underway. Concept design and budget estimates are completed. A report is being presented to the Community Services Committee on 2 July, specifically to approve the concept plans so that detailed design and consents can commence.
4.2 The project is extremely timeline critical in order to achieve a commencement date on site of March 2016.
4.3 At the 24 February 2015 Council workshop, the inclusion of a cafe was discussed. Councillors requested staff investigate the opportunity to include, or not, a Café within facility.
4.4 The advice from this
sub-committee is deemed appropriate to guide the Community Services Committee
in this decision.
5. Discussion
Café
5.1 The building has been designed to cater for a Café facing onto Main Road Stoke and sharing the main pedestrian entrance to the new Facility.
5.2 The design is such that should the Café not be required it can be removed from the end of the building, but there would be some redesign required to accommodate this.
5.3 The Café is estimated to add an additional $330,000 to the existing cost estimate. Due to the very tight timeframes required to achieve the March 2016 commencement date, little time is available for detailed analysis of potential operating costs.
5.4 A question for this Subcommittee is whether a commercial undertaking should be part of a community facility and whether Council should provide additional funding for this? The Subcommittee may prefer to encourage access to existing businesses within the Stoke shopping area instead.
5.5 Due to the very tight timeframes, there has been no investigation to understand how the café might be managed, i.e. should Council fit-out the café or should an anchor tenant be responsible for this.
Consultation
5.6 Food and beverage retailers opposite the facility (on Main Road Stoke) have been written to asking for feedback on the Cafe proposal. Responses will be tabled at the meeting.
5.7 An impact assessment has been commissioned to look at potential economic effects of a café (see Attachment 1). The report is solely focused on this from a resource management perspective which does not allow for potential trade competition effects. Council needs to determine whether it seeks to set up a café which will potentially compete with other cafe business in stoke. Given there is work going on to look at Stoke centre broadly there is no desire to inadvertently affect existing business.
5.8 Council’s solicitors have confirmed that a lease can be granted for the Café. However, the Council will need to give public notice and consider any objections before deciding to grant such a lease under section 54(1) (d) of the Reserves Act.
5.9 Council officers recommend that if the Café is to be included in the Facility then the Café should be included in the main submission for Resource/Building Consent as part of the expected notification process. The potential trade competition affects will need to be assessed as part of this process.
6. Options
6.1 The Subcommittee could indicate that it either is, or is not, appropriate to include a Café in the designs for the Stoke Community and Sports Facility building.
7. Alignment with relevant Council policy
7.1 The project aligns with the 2014/2015 Annual Plan and the draft 2015-25 Long Term Plan.
7.2 The project is consistent with Nelson 2060 particularly in providing a strong economy and sustainable city.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This is not a significant decision in terms of Council’s Significance and Engagement policy.
9. Consultation
9.1 Significant consultation has been undertaken.
10. Inclusion of Māori in the decision making process
10.1 No consultation has been undertaken with Māori.
11. Conclusion
11.1 The project is well advanced.
11.2 Officers seek advice from the Commercial Subcommittee to guide the Community Services Committee in their decision to included / or not a Café within this facility.
Shane Davies
Manager Capital Projects
Attachments
Attachment 1: A1368398 - Retail Impact Overview
