for disposition of property by sale business plan - april... · for . disposition of property by...

BUSINESS PLAN FOR

MAJOR LAND TRANSACTION FOR

DISPOSITION OF PROPERTY BY SALE

Lots 346 and 347 Woollcott Avenue, Brabham

April 2012

Submissions Closing

18 JUNE 2012

Business Plan Page 1 Disposition of Land by Sale Lots 346 and 347, Nos. 226 and 254 Woollcott Avenue, Brabham

CONTENTS 1 INTRODUCTION ..........................................................................................................2

2 SITE DESCRIPTION ....................................................................................................2

2.1 Location ....................................................................................................................................2 2.2 Zoning.......................................................................................................................................2 2.3 Description................................................................................................................................2 2.4 Location Maps ..........................................................................................................................3

3 ENCUMBRANCES ON THE SITE ...............................................................................4

4 BACKGROUND ...........................................................................................................4

4.1 Site History ...............................................................................................................................4 4.2 Purpose of Major Land Transaction / Disposition of Property ..................................................4 4.3 Objectives .................................................................................................................................5

5 VALUATION.................................................................................................................5

6 REQUIREMENTS OF THE LOCAL GOVERNMENT ACT 1995 .................................6

6.1 Expected effect on the provision of facilities and services by the Local Government ..............6 6.2 Expected effect on the persons providing facilities and services in the district ........................6 6.3 Expected financial effect on the Local Government .................................................................6 6.4 Expected effect on matters referred to in the Local Government’s current Plan of Principal

Activities prepared under section 5.56 of the Act .....................................................................6 6.5 The ability of the Local Government to manage the undertaking of the performance of the

transaction ................................................................................................................................6 6.6 Any other matter prescribed for the purposes of section 3.59 of the Act..................................6

7 METHOD OF DISPOSITION ........................................................................................6

8 COMMENTS ON BUSINESS PLAN ............................................................................7

9 PROCESS FOLLOWING PUBLIC ADVERTISING......................................................7


1 INTRODUCTION

The purpose of this Business Plan is to:

(a) Advise that the City of Bayswater proposes to undertake a Major Land Transaction for the disposition of property by sale;

(b) Provide the opportunity for public comment on the proposed disposition of property and Business Plan detailing the parcel of land, proposed to be disposed of by the City of Bayswater; and

(c) Satisfy the requirements of Sections 3.58 and 3.59 of the Local Government Act 1995 in relation to a disposition of property and a “Major Land Transaction”.

2 SITE DESCRIPTION

2.1 Location

The subject site is situated at Lots 346 and 347, Nos. 226 and 254, Woollcott Avenue, Brabham, within the City of Swan, and has a total area of 40.5394ha. The site is owned in freehold title by the City of Bayswater.

2.2 Zoning

The zoning of the site is as follows:-

(a) Metropolitan Region Scheme: Urban

(b) City of Swan Local Planning Scheme No 17:

‘Special Use Zone 10’ and ‘Development Contribution Area 1’. The objectives and requirements of the Special Use Zone 10 are set out in Schedule 4 of the City of Swan’s Local Planning Scheme No 17, and include the preparation of a District Structure Plan.

The Brabham (formerly Albion) District Structure Plan (DSP) was granted final approval by the Western Australian Planning Commission (WAPC) on 12 January 2011. The structure plan requires the preparation of local structure plans prior to the subdivision or development of the land. The specific requirements to be addressed by a local structure plan and which are related to the subject site include the provision of land for public open space, a primary school, wetland, wetland buffer and drainage. Additionally, the site is partly encumbered by a gas pipeline easement.

With respect to the Development Contribution Area 1, the Development Contribution Plan for Brabham was adopted by the City of Swan with modifications on 17 August 2011, and is currently with the West Australian Planning Commission (WAPC) for final approval.

2.3 Description

Current Land Use: Vacant

Current Topography: Mostly flat with two small ridgelines in the southern and north-eastern portions of the site.

Details: Lot 346 , No. 226 Woollcott Avenue, Brabham, on Deposited Plan 4560, Volume 1404, Folio 359.

Lot 347, No. 254 Woollcott Avenue, Brabham on Deposited Plan 4560, Volume 1389, Folio 783 (being a share title).

Lot 347, No. 254 Woollcott Avenue, Brabham on Deposited Plan 4560, Volume 1415, Folio 683 (being a share title).

2.4 Location Maps .4 Location Maps

Subject Site

Subject Site



3 ENCUMBRANCES ON THE SITE

The site has the following notations on the relevant Certificates of Title: Lot 346

Notation Description

4286/1911 Except and reserving metals, minerals, gems and mineral oil as specified in Transfer 4286/1911. As to portion only.

C397027 The right to enter upon the portion of the within land comprised in Plan 1403 to construct, use and maintain a pipeline for the carriage of natural gas as set out in the said Transfer is granted to the State Energy Commission of Western Australia.

H613443 Portion of the within land as contained in Land Administration Plan 15566 is land within the DBNGP Corridor pursuant to the Dampier to Bunbury Pipeline act 1997.

H613443 The Grantee of Transfer C397027 is now the DBNGP Land Access Minister pursuant to the Dampier to Bunbury Pipeline Act 1997.

Lot 347

Notation Description

4286/1911 Except and reserving metals, minerals, gems and mineral oil as specified in Transfer 4286/1911. As to portion only.

4 BACKGROUND

4.1 Site History

The subject site has been in the ownership of the City of Bayswater for approximately 30 years and was originally purchased for sand mining purposes. The land is included in the Swan Urban Growth Corridor Sub-Regional Structure Plan (SRSP) which was released by the State Government in April 2009. The Sub-Regional Structure Plan was prepared in order to provide a strategic planning framework to guide future urban growth and more detailed planning, consistent with Network City objectives within the identified corridor. The site is included in the Brabham District Structure Plan (DSP) area which was prepared by the City of Swan in response to the Swan Urban Growth Corridor SRSP. The DSP was adopted by the City of Swan Council on 4 February 2009 and endorsed by the WAPC on 15 December 2009, subject to modification. A local structure plan is required to be prepared and adopted prior to the subdivision or development of the land.

4.2 Purpose of Major Land Transaction / Disposition of Property

The purpose of the proposed major land transaction is to dispose of the land by sale. Council considered the future of the land at its Ordinary Meeting on 24 August 2010 and resolved:

"1. Council note there are four potential options to consider in relation to the City’s land at Lots 346 and 347 Woollcott Avenue, Brabham:

(a) The City take no action;

(b) The City dispose (sale) of the land:


(i) Prior to the preparation of a local structure plan; or

(ii) Following the preparation of a local structure plan.

(c) The City develop the land; or

(d) The City pursue a joint venture to develop the land.

2. Council provide in principle support to Option (a)(ii)) above – disposal (sale) of Lots 346 and 347 Woollcott Avenue, Brabham prior to the preparation of a local structure plan.

3. Council authorise the City to prepare a business plan in accordance with Section 3.59 of the Local Government Act 1995 for the major land transaction of disposal (sale) of Lots 346 and 347 Woollcott Avenue, Brabham.

4. The business plan be referred to Council for consideration and whether to proceed with state wide public notice of the business plan."

The draft business plan was presented to Council at its Special Meeting on 19 December 2011 where Council resolved to: "1. Reiterate its position to provide in-principle support for the disposition by sale of Lots

346 and 347, Nos. 226 and 254 Woollcott Avenue, Brabham without the preparation of a local structure plan.

2. Endorse the Business Plan for the Disposition by Sale of Lots 346 and 347, Nos. 226 and 254 Woollcott Avenue, Brabham, subject to the Business Plan being updated to include a current valuation of the subject properties.

3. Authorise the Director of Planning and Development Services to advertise the updated Business Plan for the Disposition by Sale of Lots 346 and 347, Nos. 226 and 254 Woollcott Avenue, Brabham in accordance with the requirements of the Local Government Act 1995.

4. Following the closure of the Business Plan submission period, a further report be presented to Council for consideration of any submissions made and for Council to decide (by absolute majority) whether to proceed with the Major Land Transaction.

5. Considers and confirms its expectations on the use of the profit from the disposition by sale of Lots 346 and 347, Nos. 226 and 254 Woollcott Avenue, Henley Brook, at a future workshop."

4.3 Objectives

The City of Bayswater’s objective for this Business Plan is to dispose of the land by sale and utilise the profit from the disposition for the benefit of the City of Bayswater ratepayers.

5 VALUATION

The City of Bayswater obtained a valuation from licensed valuers Colliers International (WA) Pty Ltd. In the valuation report dated 28 February 2012, Colliers International (WA) Pty Ltd advised that the value of the land as of 28 February 2012 was $18,400,000 (inclusive of GST - margin scheme basis). The final sale price could be more or less than the above valuation depending on market conditions.

The valuer has also indicated that depending on the market conditions at the time of release, the site could be worth up to $700,000/ha ($24,500,000 to $25,000,000).


6 REQUIREMENTS OF THE LOCAL GOVERNMENT ACT 1995

The Local Government Act 1995 and its associated Regulations prescribe that any transaction greater than $10,000,000 is defined as a Major Land Transaction and requires the Local Government to prepare a Business Plan prior to entering into the Major Land Transaction. The Business Plan is to include an overall assessment of the major trading undertaking or major land transaction and is to include details of:

(a) Its expected effect on the provision of facilities and services by the local government;

(b) Its expected effect on the persons providing facilities and services in the district;

(c) Its expected financial effect on the local government;

(d) Its expected effect on matters referred to in the local government’s current plan of principal activities prepared under section 5.56 of the Act;

(e) The ability of the local government to manage the undertaking or the performance of the transaction; and

(f) Any other matter prescribed for the purposes of section 3.59 of the Act. 6.1 Expected effect on the provision of facilities and services by the local

government

The profit from the sale of the land will have a positive impact on the City of Bayswater’s ability to provide services and facilities for its ratepayers.

6.2 Expected effect on the persons providing facilities and services in the district

It is anticipated that there will be no conflict with persons providing facilities and services in the City of Bayswater.

6.3 Expected financial effect on the local government

Once disposed of it is intended that the profit will be used to benefit City of Bayswater ratepayers.

6.4 Expected effect on matters referred to in the local government’s current plan of principal activities prepared under section 5.56 of the Act

It is expected that the sale of the land will assist the City in having the greater capacity to self fund asset replacement and capital works projects and/or strategic redevelopments.

6.5 The ability of the local government to manage the undertaking of the performance of the transaction

The City of Bayswater has successfully undertaken major land transactions. In this instance, the City intends to outsource the sale of the land to a suitably qualified real estate agency / auctioneer who will also be responsible for the marketing.

6.6 Any other matter prescribed for the purposes of section 3.59 of the Act

The site is currently vacant. There are no further matters that will be affected by the sale of this land.

7 METHOD OF DISPOSITION

The disposition of the subject site comprising this Major Land Transaction and the subject of the Business Plan will be in accordance with section 3.58(2) and (3) of the Local Government Act 1995.


These sections [3.58(2) and (3)] provide the following options for disposal of property:

(a) to the highest bidder at public auction; or

(b) to the person who at public tender makes what is, in the opinion of the local government, the most acceptable tender, whether or not it is the highest tender; or

(c) by local public notice of the proposed disposition:

describing the property concerned;

giving details of the proposed disposition; and

inviting submission to be made to the local government before the date specified.

It is anticipated that the disposition (sale) of the land will be by public auction.

8 COMMENTS ON BUSINESS PLAN

This business plan is being advertised for a period of six (6) weeks from the date of notification in The West Australian on Saturday 5 May 2012. Advertising will also occur in the Eastern Reporter on Tuesday 8 May 2012. The Business Plan can be inspected:

(a) At the City’s Civic Centre at 61 Broun Avenue, Morley between the hours of 8:30am and 4:30pm Monday to Friday;

(b) At the City’s Max Tulley Centre situated opposite the Post Office at the Russell Street entrance of Centro Galleria Shopping Centre, Morley between the hours of 9:00am and 5:00pm Monday to Friday;

(c) At The RISE at 28 Eighth Avenue, Maylands between the hours of 10:00am and 2:00pm Monday to Friday;

(d) On the City’s website at www.bayswater.wa.gov.au.

Copies of the Business Plan can be obtained by:

(a) Contacting Ms Siiri Clausnitzer in the City’s Planning and Development Services on 9272 0639; or

(b) Downloading the document from the City’s website at www.bayswater.wa.gov.au.

Submissions on the Business Plan are to be made in writing and to be received no later than 4.00pm Monday 18 June 2012.

Submissions to be addressed to: Chief Executive Officer City of Bayswater 61 Broun Avenue MORLEY WA 6062 Attention: Mr Damien Martin Manager Planning Services

9 PROCESS FOLLOWING PUBLIC ADVERTISING

Following the public advertising period the Council will consider all submissions and to decide (by absolute majority) whether to proceed with the Major Land Transaction for Disposition of Property in accordance with the provisions of the Local Government Act 1995.

http://www.bayswater.wa.gov.au/

http://www.bayswater.wa.gov.au/

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