PARKS AND RESERVES
DISPOSAL POLICY
Effective from 24 February 2015
Purpose
This Policy seeks to define the factors Council wil take into consideration when deciding to
dispose of property. Taking into account the long term contribution that the property wil
make to the operation of the Council and the achievement of its wider objectives in
comparison to the benefits of disposing of the property.
Definitions
Property in this Policy is defined as the fol owing:
Park and Reserve Land
means land acquired or used principal y for community,
recreational, environmental, cultural, or spiritual purposes. Any
land taken, purchased, or otherwise in any manner acquired,
whether before or after the commencement of the Reserves
Act 1977, by a local authority, unless the land is acquired
subject to a trust or a condition that it shal be held by the local
authority as a reserve.
Sale or Disposal
Council will consider the fol owing when disposing of surplus land or property:
Is it in the best interest of the Community and Council to dispose of any uneconomic
land or property either by sale or development.
If the Council owned property is subject to a perpetual y renewable lease, the
freehold title may be offered to the lessee, for freeholding purposes.
If a property is subject to a lease containing a right of purchase, the freehold title may
be offered for freeholding purposes or in accordance with the purchase procedure set
out in the lease.
If a Council owned property is of a size or shape unsuitable for any independent use
in accordance with the operative District Plan, it may be offered to an adjoining owner
at, or above, a registered valuation.
In any of the above cases the Chief Executive can be delegated by the Infrastructure
and Services Committee to negotiate on behalf of the Invercargil City Council to
determine the final sale price.(This could include sales at lower then the valuation
price.)
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In general, competitive open market methods of sale wil be considered and determined on
merit. These may include public tender, public auction or private treaty.
Council may consider a sale or disposal other than through the open market based on
individual case merits. Council wil use an independent valuation as a pricing guide for the
disposal of surplus land or property The fol owing are some examples of circumstances
where this may be considered appropriate. The fol owing list is not exhaustive and other
circumstances may be considered.
Land that because of its smal size or irregular dimensions or shape would not be
readily support a self-contained development.
Land that has no legal access.
Preferred future use for the land as identified by Council.
Land of nominal value.
Land for inclusion with an adjacent holding.
Land that wil complement a proposed adjacent site, the sale of which is consistent
with the objectives of Council.
Land where the cost of ownership is greater than the rate of return if sold.
Attached is a process diagram for how Property wil be disposed of by the Invercargil City
Council, this wil serve as a check and balance system for reporting.
This Policy does not include investment property-disposal of investment property is covered
by its own policy.
Revision History:
NA
Effective Date:
24 February 2015
This policy will be reviewed every three (3)
Review Period:
years unless earlier review is required due to
legislative change, or is warranted by another
reason requested by Council.
New Review Date:
February 2018
Any Council sale must take into account the
following section of the Local Government
Act:
Section 138 Restriction on disposal of parks
Section 140 Restrictions on disposal of
Associated Documents / References:
endowment property
Section 141 Conditions applying to sale or
exchange of endowment property
Public Works Act 1981 Section 40-42
Reserves Act 1977
Supersedes:
N/A
Reference Number:
A1176247
Parks Manager/Director of Works and
Policy Owner:
Services
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Property Disposal Process Diagram
Is the property necessary for Council to achieve objectives set out in the LTP and Annual
Plan? Detail the strategic reasons for disposing of or developing the property.
How does the disposal fit into the Council Vision of creating an exciting, innovative, safe, caring and
friendly city?
Are there any reasons for Council to retain the property?
Such as future infrastructure development needs.
Is the site needed to maintain existing infrastructure?
Wil proceeds from the sale be retained for reserve purposes?
What reasons, other than costs are there to dispose of the property?
Detailing any reasons such as; surplus facilities or lack of use by public, safety and access concerns
for neighbours and or users.
What
costs
are
associated
with
What is the cost associated with the
retaining the site?
disposal process?
Details cost such as, rates, maintenance
Detail cost such as, demolition, grant top
cost, depreciation and vandalism
up, subdivision, tender process.
Is there a market or potential purchaser or willing recipient for the site?
Detail Government valuation and market assessment.
Have the neighbouring landowners been offered the site?
Do District Plans zones or hazard overlays restrict potential development?
Staff must assess the information gathered above and develop a preliminary conclusion about
whether the potential for disposal meets the criteria to continue to the next stage.
Yes
No
Consult with the community
This could involve initial conversations and discussions
with adjoining property owners or meeting with nearby
residents or a standard public consultation process.
Report finding from the information gathering process to Council with a recommendation to retain or
dispose of property.
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