1.0    Purpose

The purpose of the policy is to give direction to property unit staff charged with maintenance, insurance, leasing of Council land and buildings, with regard to relevant statutory processes.

2.0    Background

Council owns a wide variety and large extent of land and buildings, to enable Council to carry out its statutory obligations and provide services and facilities to the district community at large.

There are also ‘strategic’ purchases made from time to time for future service uses and developments.  Land and buildings not required for Council’s purposes may be leased if it is unable to, or is uneconomic to, be disposed of, to obtain an income and minimise Council outgoings.

Disposal of Legal road deemed surplus to requirements is subject to prior approval by the Infrastructure Committee, and progress thereafter is subject to statutory process, (Local Government Act or Public Works Act).  Current leasing of road is arranged by the Infrastructure Group.

The leasing of reserve land, including esplanade reserves, is subject to the relevant provisions of the Reserve Act, subject to the classified status of the reserve.

3.0    Key Definitions

Glasgow Lease: a perpetual lease, with terms of up to 21 year, i.e. those leases of land having twenty one year perpetually renewable leases, with no provision for rent review in the intervening period.

Endowment Land: land which has been transferred to Council, either from the Crown, or private sources, for Council to hold in trust for generation of income, or for community uses.  The proceeds of sale of such land is required to be used in a way consistent with the endowment.

4.0    Policy

Property Management

a. That property management is usually a consequence and outcome of Council involvement in service delivery, and not a significant Council activity on its own (in terms of the Long Term Plan).

b. That endeavours be made to dispose of:

1. All property not required for specific Council purposes.
2. All Glasgow lease properties.

c. That endeavours be made to maximise the rentals for all leased properties, excluding social housing accommodation.

d. That a programme of prudent preventive maintenance be followed, and an acceptable visual appearance be maintained for all properties.

e. That replacement value insurance be effected for those properties which, in the opinion of the relevant Group Manager, are:

1. Essential for Council operations; or
2. Of recent construction, and there is little difference in premium between indemnity and replacement cover; or
3. Buildings that have been financed from public subscriptions, or have been donated; or
4. Where there is a moral responsibility or community need to replace the building in the event of its destruction.

Note 1: This excludes social housing units built prior to 1980.

Note 2: Council is obligated by loan agreement with Housing Corporation New Zealand to arrange replacement insurance cover for social housing units built in 2007 to provide replacement cover for those particular units.

f. The procedure for sale and purchase of property is outlined in Appendix A.

Property Purchase and Disposal

a. Costs associated with maintaining and/or disposing of an unwanted property shall be the responsibility of:

1. the Council activity which will receive the proceeds of any sale; or
2. the Council activity which has had use of and gained benefit from the land in the past.

b. Disposal of land held as Endowment:

1. requires a resolution of Council in support of disposal.
2. the statutory processes laid out in the Local Government Act 2002 are to be addressed prior to any preferential disposal.

Appendix A

Flow Chart – Acquisition of Property

Flow Chart – Sale of Property

Adopted Policy & Development Committee 18 July 2017

Last updated: 24 Feb 2021