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AGENDA

Ordinary meeting of the

 

Commercial Subcommittee

 

Friday 18 August 2017

Commencing at 9.00am

Council Chamber

Civic House

110 Trafalgar Street, Nelson

 

 

Membership: Mr John Murray (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Luke Acland, Ian Barker, and Mel Courtney and Mr John Peters


Guidelines for councillors attending the meeting, who are not members of the Committee, as set out in Standing Order 12.1:

·      All councillors, whether or not they are members of the Committee, may attend Committee meetings

·      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

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 room for discussion and voting on any of these items.

 


N-logotype-black-wideCommercial Subcommittee

18 August 2017

 

 

Page No.

 

1.       Apologies

1.1      An apology has been received from Mr John Peters

2.       Confirmation of Order of Business

3.       Interests

3.1      Updates to the Interests Register

3.2      Identify any conflicts of interest in the agenda

4.       Public Forum

5.       Confirmation of Minutes

5.1      27 June 2017                                                                              8 - 14

Document number M2715

Recommendation

That the Subcommittee

Confirms the minutes of the meeting of the Commercial Subcommittee, held on 27 June 2017, as a true and correct record.

6.       Status Report - Commercial Subcommittee - 18 August 2017 15 - 16

Document number R8204

Recommendation

That the Subcommittee

Receives the Status Report Commercial Subcommittee 18 August 2017 (R8204) and its attachment (A1777192).

   

7.       Chairperson's Report

8.       State Advances RFP response - update

           Team Leader Property, Peter Hunter will provide a verbal update.

9.       Forestry Advisory Group - Revised Terms of Reference 17 - 30

Document number R7620

Recommendation

That the Subcommittee

Receives the report Forestry Advisory Group - Revised Terms of Reference (R7620) and its attachments (A1799225, A1739267, and A1799321)

 

Recommendation to Council

That the Council

Approves the revised Terms of Reference for the Forestry Advisory Group (Attachment Two, A1739267), noting that the revised Terms of Reference differ from the Council resolution passed on 8 September 2016, which adopted the recommendations of the Forestry Review, in the following manner – The revised Terms of Reference include :

·           Delegated powers of the Forestry Advisory Group to recommend to the Commercial Subcommittee (rather than decide) the approval of budgets, and any other matters relating to commercial forestry operations; and 

·        Officers having an advisory role only.

Amends the Delegations Register to include the Forestry Advisory Group as set out in Attachment Three (A1799321).

 

10.     Haven Precinct Redevelopment - 2017/18 Work Programme 31 - 57

Document number R7999


 

Recommendation

That the Subcommittee

Receives the report Haven Precinct Redevelopment - 2017/18 Work Programme (R7999) and its attachment (A1807600);

 

Recommendation to Council

That the Council

Approves the refined ‘Visions and Goals’ for the Haven Precinct;

Visions:

·        Continuous and Quality Linkages with the Haven Precinct.

·        Reasons to visit, spend time, encourages spaces linked to the coastal environment as a whole.

·        Port and Marine underpinning the character of the Precincts Seafaring focus.

·        Safe, engaging and attractive.

Goals:

·        Public Realm within waterfront space.

·        Realistic asset retention, reuse and divestment.

·        Reasons to visit, spend time, encourages spaces linked to the coastal environment as a whole.

·        Development type – mix of public and private commercial opportunities.

·        Increased economic and social activity in the area.

Approves the expenditure of part of the $50,000 operational budget to produce a Haven Concept - Opportunity Proposal to invited interested parties to discuss options around the Haven Precinct Development area.

       

Public Excluded Business

11.     Exclusion of the Public

Recommendation

That the Subcommittee

Excludes the public 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 Minutes -  27 June 2017

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.

·    Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

2

Public Excluded Status Report - Commercial Subcommittee - 18 August 2017

 

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

·   Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

 

12.     Re-admittance of the public

Recommendation

That the Subcommittee

Re-admits the public to the meeting.

 

 

 

  


 

Minutes of a meeting of the Commercial Subcommittee

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson

On Tuesday 27 June 2017, commencing at 1.00pm

 

Present:              Mr J Murray (Chairperson), Her Worship the Mayor Reese, Councillors L Acland and M Courtney, Mr J Peters.

In Attendance:   Councillors B Dahlberg, T Skinner, P Matheson and S Walker, Acting Chief Executive (D Hammond), Group Manager Infrastructure (A Louverdis), Group Manager Community Services (C Ward) Manager Administration (P Langley) and Team Leader Administration Advisers (R Byrne)

Apologies:           Councillor I Barker  

 

 

1.       Apologies

Resolved COM/2017/017

That the Subcommittee

Receives and accepts the apologies from Councillor Barker.

Courtney/Acland                                                                        Carried

 

2.       Confirmation of Order of Business

The Chair advised there would be a Late Item on the Forestry Advisory Group Terms of Reference.

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.

5.       Confirmation of Minutes

5.1      27 April 2017

Document number M2531, agenda pages 7 - 12 refer.

Resolved COM/2017/018

That the Subcommittee

Confirms the minutes of the meeting of the Commercial Subcommittee, held on 27 April 2017, as a true and correct record.

Courtney/Murray                                                                        Carried

 

6.       Status Report - Commercial Subcommittee - 27 June 2017

Document number R7945, agenda pages 13 - 14 refer.

Resolved COM/2017/019

That the Subcommittee

Receives the Status Report Commercial Subcommittee 27 June 2017 (R7945) and its attachment (A1777192).

Peters/Courtney                                                                         Carried

 

7.       Forestry Update report  - June 2017

Document number R7813, agenda pages 15 - 29 refer.

Group Manager Infrastructure, Alec Louverdis introduced Peter Gorman, Council’s forestry consultant. Mr Louverdis noted the report was an interim report to the Commercial Subcommittee as the Forestry Advisory Group Terms of Reference were not yet confirmed. Mr Louverdis and Mr Gorman answered questions on the portfolio.

 

    Attendance: Her Worship the Mayor entered at 1.17pm.  

Resolved COM/2017/020

That the Subcommittee

Receives the report Forestry Update report  - June 2017  (R7813) and its attachments (A1771554; A1561381); and

 

Notes the progress undertaken to date on matters relating to the forestry portfolio and the Emissions Trading Scheme.

Peters/Courtney                                                                         Carried

 

Recommendation to Council COM/2017/021

That the Council

Confirms that block BROOK-22.02 be harvested if economically feasible.

Acland/Peters                                                                             Carried

 

Late Item -  Term of Reference for Forestry Advisory Group.

The Chair noted that a procedural resolution was required in order for the Subcommittee to consider this matter.

Resolved COM/2017/022

That the Subcommittee

Considers the item regarding Forestry Advisory Group Terms of Reference at this meeting as a major item not on the agenda, pursuant to Section 46A(7)(a) of the Local Government Official Information and Meetings Act 1987, to enable a timely decision to be made.

Her Worship the Mayor/Courtney                                                Carried

Attachments

1    A1786327 Late Item - Forestry Advisory Group Term of Reference 27Jun2017

Manager Administration, Penny Langley, explained that at the last meeting the Terms of Reference for the Forestry Advisory Group was left to lie. The Subcommittee were asked to approve the Terms of Reference and amend the Delegations Register to reflect this approval.    

Group Manager Infrastructure, Alec Louverdis  advised that Council had, by resolution,  specifically given the Forestry Advisory Group the ability to approve budgets and any other matters in relation to forestry operation.

The Chair noted that there was some confusion on where approval of the Terms of Reference should sit and asked that the matter be deferred to the next meeting and that officers provide a comprehensive report and consult with members of the committee to address any concerns. 

Resolved COM/2017/023

That the Subcommittee

Leaves the item Forestry Advisory Group Terms of Reference to lie on the table and not be further discussed at this meeting; and

Requests officers to provide a comprehensive report to address members’ concerns and that this and Report R7509 be brought to the Commercial Subcommittee meeting to be held on 18 August 2017.

Peters/Courtney                                                                         Carried

8.       Capital Expenditure Programme 2016-17 - Requests for change

Document number R7606, agenda pages 30 - 32 refer.

Group Manager Infrastructure, Alec Louverdis,  presented the report.

Resolved COM/2017/024

That the Subcommittee

Receives the report Capital Expenditure Programme 2016-17 - Requests for change (R7606).

Courtney/Peters                                                                         Carried

 

Recommendation to Council COM/2017/025

That the Council

Approves, with respect to project 2570 Smart Building Improvements, that $48,000 of current year budget be transferred to 2017-18; and

Approves, with respect to project 1198 Civic House capital programme, that $326,000 of current year budget be transferred to 2017-18.

Courtney/Peters                                                                         Carried

 

9.       Referred report - Brook Valley Holiday Park Opening - Review

Document number R7919, agenda pages 33 - 40 refer.

Group Manager Community Services, Chris Ward presented the report.

Resolved COM/2017/026

That the Subcommittee

Receives the report Referred report - Brook Valley Holiday Park Opening - Review (R7919) and its attachment (R7266).

Her Worship the Mayor/Acland                                                    Carried

 

       

10.     Exclusion of the Public

Resolved COM/2017/027

That the Subcommittee

Excludes the public 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:

Courtney/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

Commercial Subcommittee Meeting - Public Excluded Minutes -  27 April 2017

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.

·    Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

·    Section 7(2)(j)

     To prevent the disclosure or use of official information for improper gain or improper advantage.

2

Campground review - additional information

 

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

·   Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

3

Public Excluded Status Report - Commercial Subcommittee - 27 June 2017

 

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 2.10pm and resumed in public session at 2.42. 

11.     Re-admittance of the Public

Resolved COM/2017/028

That the Subcommittee

Re-admits the public to the meeting.

Her Worship the Mayor/Peters                                                     Carried

 

 

There being no further business the meeting ended at 2.42pm.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                       Chairperson                                     Date

         

 


 

Commercial Subcommittee

18 August 2017

 

 

REPORT R8204

Status Report - Commercial Subcommittee - 18 August 2017

     

 

1.       Purpose of Report

1.1      To provide an update on the status of actions requested and pending.

 

 

2.       Recommendation

That the Subcommittee

Receives the Status Report Commercial Subcommittee 18 August 2017 (R8204) and its attachment (A1777192).

 

 

 

Attachments

Attachment 1:  A1777192 - Commercial Subcommittee Status Report - 18 August 2017

 

  


  


 

Commercial Subcommittee

18 August 2017

 

 

REPORT R7620

Forestry Advisory Group - Revised Terms of Reference

     

 

1.       Purpose of Report

1.1      To consider and recommend to Council revised Terms of Reference (TOR) for the Forestry Advisory Group (Group).

 

 

2.       Recommendation

That the Subcommittee

Receives the report Forestry Advisory Group - Revised Terms of Reference (R7620) and its attachments (A1799225, A1739267, and A1799321)

Recommendation to Council

That the Council

Approves the revised Terms of Reference for the Forestry Advisory Group (Attachment Two, A1739267), noting that the revised Terms of Reference differ from the Council resolution passed on 8 September 2016, which adopted the recommendations of the Forestry Review, in the following manner – The revised Terms of Reference include :

·      Delegated powers of the Forestry Advisory Group to recommend to the Commercial Subcommittee (rather than decide) the approval of budgets, and any other matters relating to commercial forestry operations; and 

·    Officers having an advisory role only.

Amends the Delegations Register to include the Forestry Advisory Group as set out in Attachment Three (A1799321).

 

 

 

3.       Background

3.1      In 2015, Council, through the Commercial Subcommittee, undertook a review of forestry activities. 

3.2      In August 2016, the Commercial Subcommittee received the Forestry Review, and recommended to the Governance Committee and Council the adoption of all 15 recommendations included in the review, with the sole change being a change in name of the proposed group to oversee forestry activities from the Forestry Governance Committee to the Forestry Advisory Group (Group). 

3.3      On 8 September 2016, Council subsequently passed a resolution agreeing to all 15 recommendations set out in the Forestry Review.  One of the recommendations of the Forestry Review confirmed by Council was:

“That the Council

Agrees to establish a Forestry Advisory Group reporting to the [Commercial sub-committee or its successor] with respect to forestry management, comprising 2 Councillors, 2 staff members, and an external forestry expert; with delegated authority to approve forestry and harvesting management strategy and plans, engage contractors, approve budgets and decide any other matters relating to commercial forestry operations”.

3.4      A report was brought to the 27 April 2017 Commercial Subcommittee to recommend to Council the establishment of the Forestry Advisory Group and its draft Terms of Reference (draft ToR). The Subcommittee approved establishment of the Group (which was subsequently confirmed by Council), but raised several issues with the draft ToR. The draft ToR were left to lie on the table.

3.5      The draft ToR were brought to the 27 June 2017 Commercial Subcommittee meeting - included as Attachment One (A1799225).

3.6      The Subcommittee requested a full report to the next meeting of the Commercial Subcommittee, addressing the issues raised at the 27 April 2017 Commercial Subcommittee regarding the draft ToR.

3.7      In broad terms, the issues raised at the 27 April 2017 Commercial Subcommittee meeting were:

3.7.1   Delegations:

The draft ToR for the Group stated that the Group would report to the Commercial Subcommittee.  However, the draft ToR also confirmed decision-making powers for the Group, which was greater than the powers of the Commercial Subcommittee (which currently has no powers to decide, and may only recommend matters to Council);

3.7.2   Membership:

The proposed membership of the Group included two councillors, two Council officers and an external consultant.  A question was raised as to whether it was appropriate for Council officers to be members of a group with decision-making powers;

3.7.3   Administrative Matters:

Questions were raised regarding the proposed quorum for the Group, record keeping of Group decisions, and review of the Group’s activities.

3.8      Each of these issues is discussed in turn below.  Revised Terms of reference (revised ToR) are also included as Attachment 2 (A1739267).

4.       Discussion

Delegations

4.1      One of the main concerns raised by the Commercial Subcommittee on the 27 April 2017 was that the draft ToR for the Group had greater powers to decide than the Commercial Subcommittee to which it reported.

4.2      It is unusual for a subordinate decision-making body to have greater powers to decide than the Committee or Subcommittee to which it reports.  However, there is nothing in the Local Government Act 2002 to preclude Council from providing a subordinate decision-making body greater powers in specified cases than the Committee or Subcommittee to which they report. 

4.3      For example, Council has previously adopted this model through the granting of decision-making powers to the Community Investment Funding Panel, which reports to the Community Services Committee.  The Community Investment Funding Panel has full powers to decide the allocation of Community Investment Funding, whereas the Community Services Committee does not have any powers to decide in relation to this matter.

4.4      The powers to decide included in the draft ToR as presented to the Commercial Subcommittee on 27 April 2017 and 27 June 2017 reflect Council’s intent that the Group have broad decision-making powers.  The powers to decide also reflected the outcomes of the Forestry Review, which included:

4.4.1   Formation of the Group to provide governance oversight of all operational matters, to ensure the appropriate management of the forestry portfolio; and

4.4.2   Recognition that forestry matters are complex and require forward planning. Inclusion of powers to decide for the Group allowed for the streamlining of planning and operational matters.

4.5      The Commercial Subcommittee has the right to consider and recommend revised ToR to the Council for approval. 

4.6      It is open to the Commercial Subcommittee to recommend to Council revised ToR with no decision-making powers.  However, this would mean that every recommendation of the Group would result in a recommendation to the Commercial Subcommittee, and a subsequent recommendation to Council.  This could lead to delays in decision-making of six to nine weeks, and could have unintended consequences for matters requiring a quick response.

4.7      The revised ToR (included as Attachment 2) seek to strike a balance between matters for which technical knowledge and responsive decision making are imperative, and those for which a delay while the Commercial Subcommittee and Council consider matters may be warranted. The revised ToR include powers to decide for:

4.7.1   Forestry and harvesting management plans as prepared by the Forestry contractor and endorsed by the independent forestry external expert; and

4.7.2   Engagement of consultants required to undertake all works necessary to guide recommendations to the Commercial Subcommittee and Council.

4.8      All remaining matters, including the power to approve forestry-related budgets and to decide on any matters relating to continuing commercial forestry operations, have been altered to be powers to recommend to the Commercial Subcommittee (and on to Council). An example of where the Group would make a recommendation to the Commercial Subcommittee (and on to Council) would be whether to join the Forestry Accreditation Scheme.  

4.9      Officers consider that:

4.9.1   This mix of powers to decide and powers to recommend will streamline operational decision making and will address the Commercial Subcommittee’s concerns about the Group making decisions relating to commercial matters; and

4.9.2   Including a forestry expert as part of the Group’s membership, coupled with having an established, experienced forestry contractor in place, means that powers to decide on matters relating to forestry and harvesting management plans will be made with appropriate technical knowledge.

Membership

4.10    A question was raised at the 27 April 2017 Commercial Subcommittee meeting regarding the proposed membership of the Group, and in particular, the inclusion of Council officers on a subordinate decision-making body with decision-making powers.

4.11    There is nothing in the Local Government Act 2002 to prevent Council officers being members of a subordinate decision-making body with decision-making powers.  The Local Government Act prevents the appointment of Council officers to Council committees, but expressly does not extend this restriction further to subcommittees or other subordinate decision-making bodies.

4.12    At the meeting of 27 April 2017, it was suggested that her Worship the Mayor be added to the Group, to increase governance oversight.  On 4 May 2016, Council resolved to establish the Group, and confirmed the membership of the Group. The Group’s membership comprises of two elected members (Her Worship the Mayor and Councillor Acland), the Chair of the Commercial Subcommittee, two Council officers (one being the Group Manager Infrastructure) and an independent forestry expert.

4.13    Officers do not recommend any changes to the Group membership, as this was already confirmed by Council on 4 May 2017.  However, it is noted that the main role of the officers, as well as the independent forestry expert, is to provide advice to the Group.  

Administrative Matters

4.14    Other issues raised as concern at the 27 April 2016 meeting included:

·   Whether meetings of the Group would be formally minuted, whether agendas would be issued and whether standing orders would apply - The revised ToR (attachment 2) clarifies that formal agendas, including written reports from officers, will be prepared in advance of all meetings.  All meetings will be formally minuted, and standing orders will apply.  Meetings will be publicly notified, however there will be no public forum;

·   Having a review date after three years from date of adoption - Officers suggest an appropriate time for review is at the end of the triennium and have incorporated this into the attached revised ToR;

·   Quorum for the Group – the draft Tor originally suggested a quorum of three, including the Chair of the Commercial Subcommittee and an elected member.  However, it is also appropriate, for meetings to be meaningful, that both an officer and the independent forestry expert should be in attendance to offer advice. A quorum of four is appropriate and has been included in the attached revised ToR. 

5.       Options

5.1      The Subcommittee has several options to recommend to Council. Either:

·   Approve the revised TOR for the Group; or

·   Suggest changes to the revised TOR for the Group; or

·   Not approve the revised TOR.

5.2      Officers recommend that the Subcommittee approve the attached revised TOR for recommendation to Council.

Option 1 (Preferred): Approve the revised ToR or amend the revised ToR

Advantages

·   Opportunity for effective oversight in relation to the forestry activity.

Risks and Disadvantages

·   Additional Council resources required.

·   Amending the revised TOR will not align with the Forestry Review recommendations

Option 2: Do not approve the revised ToR

Advantages

·    Resourcing involved in operating the group would not be required.

Risks and Disadvantages

·    The forestry activity continues without the benefit of the Group’s involvement.

·    Does not align with the Forestry Review recommendations.

 

5.3      An alternative course of action could be for Council to extend the Commercial Subcommittee’s delegations to include powers to decide for specific matters relating to commercial forestry, including approval of forestry related budgets and to decide on any matters relating to continuing commercial forestry operations. However, this would be a decision for Council to make.

 

 

Alec Louverdis

Group Manager Infrastructure

Attachments

Attachment 1:  A1799225 - Forestry Advisory Group draft Terms of Reference considered by Commercial Subcommittee 27 April 2017

Attachment 2:  A1739267 - Forestry Advisory Group revised Terms of Reference

Attachment 3:  A1799321 - Draft Delegations Register amendment to include Forestry Advisory Group

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

This decision will support the effective and efficient management of Council’s production forest to maximise returns to the ratepayers.  

2.   Consistency with Community Outcomes and Council Policy

The recommendation aligns with the following Community Outcomes:

-   Our Council provides leadership and fosters partnerships, a regional perspective and community engagement; and 

-    Our region is supported by an innovative and sustainable economy

3.   Risk

The establishment of the Group will reduce risk to Council. 

4.   Financial impact

The establishment of the Group will result in a small administrative cost which can be met through existing resourcing.

5.   Degree of significance and level of engagement

This matter is of low significance.

6.   Inclusion of Māori in the decision making process

Māori have not specifically been consulted on this report.

7.   Delegations

The Commercial Subcommittee is responsible for making recommendations to Council in relation to the forestry activity.

 

 



 



 


 



 

Commercial Subcommittee

18 August 2017

 

 

REPORT R7999

Haven Precinct Redevelopment - 2017/18 Work Programme

     

 

1.       Purpose of Report

1.1      To confirm investigation work and production of a Haven Concept – Opportunity Proposal can be undertaken in the 2017/18 financial year utilising part of the operational budget of $50,000 provided in the adopted Annual Plan.

 

 

2.       Recommendation

That the Subcommittee

Receives the report Haven Precinct Redevelopment - 2017/18 Work Programme (R7999) and its attachment (A1807600);

Recommendation to Council

That the Council

Approves the refined ‘Visions and Goals’ for the Haven Precinct;

Visions:

·    Continuous and Quality Linkages with the Haven Precinct.

·    Reasons to visit, spend time, encourages spaces linked to the coastal environment as a whole.

·    Port and Marine underpinning the character of the Precincts Seafaring focus.

·    Safe, engaging and attractive.

Goals:

·    Public Realm within waterfront space.

·    Realistic asset retention, reuse and divestment.

·    Reasons to visit, spend time, encourages spaces linked to the coastal environment as a whole.

·    Development type – mix of public and private commercial opportunities.

·    Increased economic and social activity in the area.

Approves the expenditure of part of the $50,000 operational budget to produce a Haven Concept - Opportunity Proposal to invited interested parties to discuss options around the Haven Precinct Development area.

 

 

 

3.       Outcome of 27 June workshop

3.1      The 27 June 2017 workshop provided a level of direction and support for the Haven Precinct project continuing.

3.2      There was support for ensuring the Haven is recognised for its place as a destination by the sea with a hospitality focus and finding and celebrating its point of difference and meeting the Council’s Visions and Goals for the Haven Precinct.

3.3      During the 27 June 2017 workshop the general consensus reached was a need to undertake further investigative work. This would include investigating market interest and potential developer partnering options. The aim of this being to promote potential development opportunities within the Haven precinct project.

3.4      There was also consensus reached on the following specific areas;

·   The Maitai shared path continued to include access into the Haven Precinct.

·   Demolition of the ex-Four Seasons Building.

·   Commence work on the investigations for the other strategic assets within the Haven Precinct.

3.5      The workshop discussions included prioritisation around key assets in the 2017/18 financial year, these are outlined below;

·   Plant and Food Building (300 Wakefield Quay); High Priority - Investigate the Plant and Food buildings condition and the foreshore area to ascertain any potential constraints on the future use of the building and the potential for development of the site and extending over the foreshore.

·   Anchor Building (258 -262 Wakefield Quay); High Priority – Investigate market interest in the lease options for the building as is or if upgraded to gauge best value proposition.

·   Ex-Four Seasons (250 Haven Road); High Priority – Prepare for the demolition of this building to provide space for increasing the car parking provision in the Precinct.

·   Ex-Reliance Building (236 Haven Road); Medium Priority – investigate market interest and lease options for the building as is or with a smaller footprint and a higher new building standard rating in regard to earthquake performance.

           Visions and Goals

3.6      The Visions and Goals were reviewed to check these are still supported as a result these have been refined below;

 

‘VISIONS’ Refined

‘GOALS’ Refined

Continuous and Quality Linkages with midway destinations the Haven Precinct

Public Realm within waterfront space

Reasons to visit, spend time, encourages spaces linked to the coastal environment as a whole

Realistic aspirations on asset retention, and reuse of assets and divestment

 

Port and Marine underpinning the character of the Precincts Seafaring focus

Development type – mix of public and private commercial opportunities

Safe, engaging and attractive gateway

Increased economic and social activity in the area

Information review and preparation of a Haven Concept - Opportunity Proposal

3.7      Discussions during the workshop indicated the desire to explore market and developer partnering interest for the Haven Precinct development project. One method of achieving this would be to produce a Haven Concept - Opportunity proposal for release to these markets. An example of a similar proposal has been attached to this report for reference (refer Attachment 1). 

3.8      The opportunity proposal would provide information around the Haven Precinct, including the key sites and findings to date and include draft concepts from prior works undertaken last year.

3.9      Council would procure the services of a suitably experienced company to collate and produce this document. 

3.10    Permission to engage with stakeholders and the public would be sought from Council prior to the release of the opportunity proposal to the market.

3.11    Council will use the opportunity proposal to test, elicit and verify interest from the national developer market on the precinct as a whole, or in part. The opportunity proposal is intended to open the door to interested parties to make contact and discuss opportunities.

3.12    Cost Allowance – up to $50,000 of the operational budget in 2017/18.

Indicative Timeline

3.13    The table provides the indicative timeline for the work;

Indicative timeline

Action

18/08/2017

Investigations around Plant and Food Building commence to update and inform the opportunity proposal

21/09/2017

Council endorsement to produce opportunity proposal received

30/10/2017

Complete the procurement of the consultant to undertake the preparation of the opportunity proposal

30/11/2017

Engagement undertaken with stakeholders and public prior to release

4/12/2017

Release opportunity proposal to the market

02/02/2017

Commence discussions with interested parties

Capital expenditure

3.14    The 2017/18 adopted Annual Plan has approved $550,000 of capital expenditure to support potential initiation work packages.

3.15    With the development market interest determined, a whole of site or partial site approach can be explored and work packages can be planned.

4.       Options

4.1      The table below sets out the options for consideration;

 

Option 1: To accept the expenditure to produce the Haven Concept - Opportunity Proposal

Advantages

·   Reconfirms the Council’s continuing commitment to the development project

·   Builds national interest in the area

·   Seeks information around commercial interest and opportunities in the development space

·   Determines interest from the developer market in the Haven Precinct before any works are undertaken

·   Cost implication for the Information Brochure is not significant and will enable better strategic planning

Risks and Disadvantages

·   The public may perceive this as more investigation instead of physical work

Option 2: To reject the production of the Haven Concept – Opportunity Proposal and instruct officers to explore physical work packages to key assets

Advantages

·    Gets initial physical works commencing on site

·    Builds local interest in the area

Risks and Disadvantages

·    Will incur significant cost

·    May set an expectation that other works will follow while at this stage these works are undecided

·    May turn off developer interest and close down potential opportunities

 

5.       Conclusion

5.1      The Haven Concept - Opportunity Proposal will provide a means to gain essential feedback from the developer market and potentially open up other options for the Haven Precinct development. Any further options can be added to the information obtained last year and will provide a better perspective of how the Precinct can be developed.

 

 

Martin Brown

Manager Building

Attachments

Attachment 1:  A1807600 Coromandel Harbour Facilities Development Project Example Document 03August2017

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

Exploring developer interest allows a better understanding of options to develop infrastructure and services at the Haven Precinct in an effective manner.

2.   Consistency with Community Outcomes and Council Policy

The proposal contributes to the following community outcome: ‘Our urban and rural environments are people-friendly, well planned and sustainably managed’, and ‘Our communities are healthy, safe, inclusive and resilient’

The proposal is also consistent with Nelson 2060, Goal Seven states “Our economy thrives and contributes to a vibrant and sustainable Nelson”.

3.   Risk

There could be minor risk the information brochure is seen as more reporting over actual physical work.

Physical work is unlikely to be undertaken in 2017/18

Sharing information with the public will develop expectations for the Haven.

4.   Financial impact

There is financial expenditure required to commence the project and better validate and verify the direction of the Precinct Development project moving forward.  The adopted Annual Plan 2017/18 has $50K Operational Expenditure and $550K of Capital Expenditure allowed.

5.   Degree of significance and level of engagement

This matter is considered of low to medium significance, engagement will be required to update the public and stakeholders of the progress of this project.

6.   Inclusion of Māori in the decision making process

Maori have not been specifically consulted on this report.

7.   Delegations

The Commercial Subcommittee has the delegation to make recommendations to Council on matters around strategic governance and direction to ensure the maximisation of Council’s property portfolio.

 

 


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