Agenda of Extraordinary Council Meeting - Tuesday, February 2, 2021

Extraordinary Council Meeting Agenda

2 February 2021

COUNCIL MEMBERS REGISTER OF INTERESTS

Name	Responsibility (i.e. Chairperson etc)	Declaration of Interests	Nature of Potential Interest	Member's Proposed Management Plan
Hon Mayor John Carter QSO	Board Member of the Local Government Protection Programme	Board Member of the Local Government Protection Program
Hon Mayor John Carter QSO	Carter Family Trust
Deputy Mayor Ann Court	Waipapa Business Association	Member		Case by case
	Warren Pattinson Limited	Shareholder	Building company. FNDC is a regulator and enforcer	Case by case
	Kerikeri Irrigation	Supplies my water		No
	Top Energy	Supplies my power		No other interest greater than the publics
	District Licensing	N/A	N/A	N/A
	Top Energy Consumer Trust	Trustee	Crossover in regulatory functions, consenting economic development and contracts such as street lighting.	Declare interest and abstain from voting.
	Ann Court Trust	Private	Private	N/A
	Waipapa Rotary	Honorary member	Potential community funding submitter	Declare interest and abstain from voting.
	Properties on Onekura Road, Waipapa	Owner Shareholder	Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse)	Declare interest and abstain from voting.
	Property on Daroux Dr, Waipapa	Financial interest	Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse)	Declare interest and abstain from voting.
	Flowers and gifts	Ratepayer 'Thankyou'	Bias/ Pre-determination?	Declare to Governance
	Coffee and food	Ratepayers sometimes 'shout' food and beverage	Bias or pre-determination	Case by case
	Staff	N/A	Suggestion of not being impartial or pre-determined!	Be professional, due diligence, weigh the evidence. Be thorough, thoughtful, considered impartial and balanced. Be fair.
	Warren Pattinson	My husband is a builder and may do work for Council staff		Case by case
Ann Court - Partner	Warren Pattinson Limited	Director	Building Company. FNDC is a regulator	Remain at arm’s length
	Air NZ	Shareholder	None	None
	Warren Pattinson Limited	Builder	FNDC is the consent authority, regulator and enforcer.	Apply arm’s length rules
	Property on Onekura Road, Waipapa	Owner	Any proposed FNDC capital work in the vicinity or rural plan change. Maybe a link to policy development.	Would not submit. Rest on a case by case basis.
David Clendon	Chairperson – He Waka Eke Noa Charitable Trust	None		Declare if any issue arises
	Member of Vision Kerikeri	None		Declare if any issue arrises
	Joint owner of family home in Kerikeri	Hall Road, Kerikeri
David Clendon – Partner	Resident Shareholder on Kerikeri Irrigation
David Collard	Snapper Bonanza 2011 Limited	45% Shareholder and Director
David Collard	Trustee of Te Ahu Charitable Trust	Council delegate to this board
Felicity Foy	Director - Northland Planning & Development	I am the director of a planning and development consultancy that is based in the Far North and have two employees. Property owner of Commerce Street, Kaitaia		I will abstain from any debate and voting on proposed plan change items for the Far North District Plan.
				I will declare a conflict of interest with any planning matters that relate to resource consent processing, and the management of the resource consents planning team.
				I will not enter into any contracts with Council for over $25,000 per year. I have previously contracted to Council to process resource consents as consultant planner.
	Flick Trustee Ltd	I am the director of this company that is the company trustee of Flick Family Trust that owns properties Seaview Road – Cable Bay, and Allen Bell Drive - Kaitaia.
	Elbury Holdings Limited	This company is directed by my parents Fiona and Kevin King.	This company owns several dairy and beef farms, and also dwellings on these farms. The Farms and dwellings are located in the Far North at Kaimaumau, Bird Road/Sandhills Rd, Wireless Road/ Puckey Road/Bell Road, the Awanui Straight and Allen Bell Drive.
	Foy Farms Partnership	Owner and partner in Foy Farms - a farm on Church Road, Kaingaroa
	Foy Farms Rentals	Owner and rental manager of Foy Farms Rentals for 7 dwellings on Church Road, Kaingaroa and 2 dwellings on Allen Bell Drive, Kaitaia, and 1 property on North Road, Kaitaia, one title contains a cell phone tower.
	King Family Trust	This trust owns several titles/properties at Cable Bay, Seaview Rd/State Highway 10 and Ahipara - Panorama Lane.	These trusts own properties in the Far North.
	Previous employment at FNDC 2007-16	I consider the staff members at FNDC to be my friends
	Shareholder of Coastal Plumbing NZ Limited
Felicity Foy - Partner	Director of Coastal Plumbing NZ Limited
Felicity Foy - Partner	Friends with some FNDC employees
Mate Radich	No form received
Rachel Smith	Friends of Rolands Wood Charitable Trust	Trustee
	Mid North Family Support	Trustee
	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member
Rachel Smith (Partner)	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member and Treasurer
Kelly Stratford	KS Bookkeeping and Administration	Business Owner, provides book keeping, administration and development of environmental management plans	None perceived	Step aside from decisions that arise, that may have conflicts
	Waikare Marae Trustees	Trustee	Maybe perceived conflicts	Case by case basis
	Bay of Islands College	Parent Elected Trustee	None perceived	If there was a conflict, I will step aside from decision making
	Karetu School	Parent Elected Trustee	None perceived	If there was a conflict, I will step aside from decision making
	Māori title land – Moerewa and Waikare	Beneficiary and husband is a shareholder	None perceived	If there was a conflict, I will step aside from decision making
	Sister is employed by Far North District Council			Will not discuss work/governance mattes that are confidential
	Gifts - food and beverages	Residents and ratepayers may ‘shout’ food and beverage	Perceived bias or predetermination	Case by case basis
	Taumarere Counselling Services	Advisory Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
	Sport Northland	Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
Kelly Stratford - Partner	Chef and Barista	Opua Store	None perceived
Kelly Stratford - Partner	Māori title land – Moerewa	Shareholder	None perceived	If there was a conflict of interest I would step aside from decision making
Moko Tepania	Teacher	Te Kura Kaupapa Māori o Kaikohe.	Potential Council funding that will benefit my place of employment.	Declare a perceived conflict
	Chairperson	Te Reo o Te Tai Tokerau Trust.	Potential Council funding for events that this trust runs.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Te Rarawa	As a descendent of Te Rarawa I could have a perceived conflict of interest in Te Rarawa Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Whaingaroa	As a descendent of Te Rūnanga o Whaingaroa I could have a perceived conflict of interest in Te Rūnanga o Whaingaroa Council relations.	Declare a perceived conflict
	Tribal Member	Kahukuraariki Trust Board	As a descendent of Kahukuraariki Trust Board I could have a perceived conflict of interest in Kahukuraariki Trust Board Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga ā-Iwi o Ngāpuhi	As a descendent of Te Rūnanga ā-Iwi o Ngāpuhi I could have a perceived conflict of interest in Te Rūnanga ā-Iwi o Ngāpuhi Council relations.	Declare a perceived conflict
John Vujcich	Board Member	Pioneer Village	Matters relating to funding and assets	Declare interest and abstain
	Director	Waitukupata Forest Ltd	Potential for council activity to directly affect its assets	Declare interest and abstain
	Director	Rural Service Solutions Ltd	Matters where council regulatory function impact of company services	Declare interest and abstain
	Director	Kaikohe (Rau Marama) Community Trust	Potential funder	Declare interest and abstain
	Partner	MJ & EMJ Vujcich	Matters where council regulatory function impacts on partnership owned assets	Declare interest and abstain
	Member	Kaikohe Rotary Club	Potential funder, or impact on Rotary projects	Declare interest and abstain
	Member	New Zealand Institute of Directors	Potential provider of training to Council	Declare a Conflict of Interest
	Member	Institute of IT Professionals	Unlikely, but possible provider of services to Council	Declare a Conflict of Interest

Extraordinary Council Meeting Agenda

2 February 2021

5 Reports

5.1 Bay of Islands Sport Fields, Waipapa

File Number: A3071430

Author: Andy Finch, General Manager - Infrastructure and Asset Management

Authoriser: Shaun Clarke, Chief Executive Officer

Purpose of the Report

To obtain a Council decision on the location of 12.8 hectares of Sports Fields within a Council owned plot of land comprising 46.77 hectares at Waipapa, noting that the decision will impact upon the potential future utilisation of the land balance (particularly in relation to possible commercial and/or residential development), but also that risk would be incurred in moving the location to achieve that advantage.

Executive Summary

· Council has been considering the provision of additional sport fields for Kerikeri since 2012 and potentially earlier.

· A needs assessment was undertaken in 2019 and the results shared with Elected Members.

· Following a robust selection process, a 46.77 hectare site was acquired in Waipapa.

· This area is significantly more than is needed for the provision of the identified stage 1 sport fields which requires around 13 hectares.

· The question of what to do with the balance of the land has not yet been in scope for the work being done on the primary purpose of the site (the BoI Sport hub), but has now been raised by Elected Members for examination; this appropriately calls into imeediate focus the viability of various potential commercial and residential development opportunities and the potential for a financial return to Council.

· The potential options are:

i. Commercial and/or residential development

ii. Public open space and/or

iii. On-going expansion of sports facilities, potentially community led

· The currently proposed design locates the sport fields in the centre of the site; this is appropriate and respectful of the project, but also stands to be sub-optimal in terms of potential future commercial/residential development if that is the direction Elected Members wish to take.

· The northern and southern extents of the site are in flood zone; the northern end is particularly vulnerable.

· Council has obtained MBIE funding in the sum of $2m towards sport field provision; a key milestone is delivery by December 2021.

· There is community and sport code expectations that sport fields will be available for use by December 2021; this is a tight programme.

Recommendation

That Council:

i) Either

a) Approve the current central location of the Stage 1 Sport Fields provision, as detailed in Figure 1, with the primary aim of the venture prioritised and protected from any risk, and the future use of the balance of the land available (approximately 30 hectares subject to a further Council report at a later date.

b) Approve the relocation of the Stage 1 Sport Fields provision to either the north or south extents of the site, with the future use of the balance of the land available (approximately 30 hectares) subject to a further Council report at a later date

ii) Note that the decision is urgent to meet an obligation to MBIE to deliver the Stage 1 Sport Fields by December 2021.

1) Background

Council has been considering the demand for sport field provision in and around Kerikeri since 2012 and potentially earlier. In July 2019 Council obtained a needs analysis from specialist sports field consultants (GLG) which was subsequently the subject of a workshop with Elected Members.

From this needs assessment a multi-criteria analysis was undertaken to identify and rank suitable sites in and around Kerikeri and Waipapa for the required land area of around 10 hectares. From this work the optimum site was identified as being a 46.77 hectare rural property opposite the Waipapa retail area on State Highway 10 which provided a flat contour which could easily be developed into sports fields, with close proximity to existing sports facilities and the potential for excellent vehicle access. Council approved the purchase at its meeting held on 26 February 2020, and the purchase was finalised on 1 May 2020 at the agreed price of $4,975,000.

The key to unlocking the potential to this site was the creation of a new road access off State Highway 10. Approval in principal for the new access was given by NZTA in February 2020, subject to final details being confirmed by Council.

Following the purchase of the land Council prepared a feasibility report in August 2019, detailing a proposed layout of sport fields totalling some 12.8 hectares, along with options for the potential future staged expansion of sports provision at the site, potentially to an area of 27 hectares. The preliminary stage 1 layout also allocated land for a future wastewater treatment plant and water treatment plant to service the future expansion of Waipapa.

The preliminary footprint of the initial stage of the development is shown on Figure 1 below. The location of the fields was optimised around the fixed location of the proposed new road junction with State Highway 10, along with minimising construction costs, particularly in relation to flood zones at the north and south extents of the site.

Throughout the development of the proposal and land purchase the sports codes have been represented by James Coleman, the local football Community Development Officer.

Figure 1- Stage 1 Preliminary layout.

In Budget 2020, Government agreed to provide a $3 billion investment in infrastructure to support New Zealand's economic recovery as part of the 11 May COVID-19 Response and Recovery Fund. A Council bid for $2m towards sport fields provision at Waipapa was successful, with a defined milestone of completion of work by December 2021. The original submission was based on the preliminary layout detailed in Figure 1. An initial conversation with MBIE has indicated that any significant change in the layout would require MBIE approval, but this approval would likely be forthcoming. The key driver for MBIE is the delivery date of December 2021, and whilst this may be varied then a full justification based on delays to project delivery would need to be provided.

A working party was subsequently established to guide the delivery of this project, with membership including Elected Members, community representatives including James Coleman.

Staff have done no further work on potential options for the utilisation of the balance of the land beyond Stage 1, with resources being prioritised to the delivery of the current proposal.

In anticipation of a need to consider future residual land use, Council has been working with FNHL to understand the options that might be available. In late December 2020 FNHL approached Council with an indicative commercial development proposal for the site to sit alongside the sports field provision. This proposal is detailed in Figure 2. The intention of this proposal was to outline what may be achievable in terms of the site’s development. The plan is not fixed, it is just a concept, but was raised with FNDC to highlight the future potential of the residual land. The land can accommodate a large mixed-use development that could underpin financially the sports hub through capital or rental income. The final design and mix of activities, on whatever land is residual, would be decided on in consultation with the Council and Community. The proposal is not to take precedent or impinge on the sports hubs timetable for delivery but does questions whether the fields are located in the best location, as they are central to the site which may limit future development options. The location of the sports fields was the result of a technical report that Haigh Workman undertook and any movement would need to be qualified, if indeed it was possible.

Figure 2 - Proposed Indictive Commercial Development

The northern and southern ends of the site are located within identified flood zones:

Figure 3 - 1 in 10 yr flood event (NRC Flood Hazard Mapping)

Figure 4 - 1 in 100 yr flood event (NRC Flood Hazard Mapping)

Whilst it is understood that Northland Regional Council (NRC) are progressing work to mitigate the flooding risk in Waipapa, in the time available a planning assessment has not been undertaken to identify the possible mitigation that may be required to obtain a resource consent to build in the flood zone. An NRC resource consent would be dependent upon the proposal to mitigate the flooding risk. If the intention was to construct bunds to divert floodwaters, a resource consent would be required, and Council would need to demonstrate that the diversion is not adversely affecting downstream properties. If Council were to affect downstream properties, gaining consent would be unlikely or very time consuming.

The working group have given a clear steer that even occasional flooding of the sports fields would be unacceptable.

2) Discussion and Options

The issue to be resolved is the potential utilisation of the balance of the land, and the impact of this on the location of the proposed fields within the overall boundary of the site. With urgency to meet the timescale for delivery, a decision on the placing on the sport fields, namely as currently proposed in the centre of the site, or alternatively to the north or south, needs to be made by 6 February 2021 to achieve a stage 1 delivery date of December 2021. The concept diagram, Figure 2, is an example only of one option which Elected Members may wish to consider. Others being the future expansion of sports provision or public open space. The mix of commercial and/or residential development is also negotiable.

Figure 5 - Indicative field layout north

Figure 6 - Indicative field layout south

FNHL have advised that the possible return on a commercial/ residential development would be significant (potentially $3-4m per annum), but this would vary subject to (a) whether the site is a single lot or split, as if the residual land is split into two lots it has cost implications as services and infrastructure are duplicated, and (b) on the mix and density of activities Council are comfortable with.

The northern end of the site floods more regularly, with reported flooding during a 1 in 10-year event. Further north and closer to the Whiriwhiritoa Stream the land becomes increasingly low lying with a ground water table likely less than 0.7m below ground level. If the facility is moved to the northern side of the site, the majority of the sports complex will be located within a flood hazard area. Constructing sport fields within the 1 in 10-year flood zone would be challenging.

· The southern end of the site is less impacted by flooding. The 1 in 100 yr. flood event indicates some shallow overspill from the Kerikeri River. However, the southern alternative is close to the residential properties off Waitotara Drive.

Should the location of the sport fields be either north or south, the project would also need to make an assessment under the National Environmental Standards for Freshwater (NESFW) as there may be natural wetlands present in these area. This would have implications for earthworks and associated diversion and discharges of stormwater within 100 metres of these areas.

· A preliminary estimate for the cost of flood mitigation for sport fields located in the northern flood zone would be approximately $1m, and in the southern flood zone $200k.

In summary, Elected Members will need to exercise their judgement to determine the best overall future use of the site, and in particular the location of the stage 1 sport fields (central, north or south), with a view to the future use optimal use for the balance of the site.

The decision cannot be deferred due to the need to ensure Council meets published milestones with MBIE, the sports codes and the community.

This report does not make a specific recommendation, but instead provides two options with each carrying benefits and risks. It is a political decision on which staff are seeking Council direction in order to proceed.

Elected Members in arriving at a decision need to consider:

· The delivery timing constraints;

· The significant potential returns to the ratepayer from commercial and residential development opportunities, which are expected to be less if the sport fields are located centrally;

· The increased costs of building sport fields in the flood zone, (significant at the north end and less at the south end);

· The time and cost risk of obtaining a resource consent should the sport fields be relocated, particularly to the northern end;

· The potential impact on the adjacent residential properties, particularly Waitotara Drive at the southern end;

· Whether Waipapa can sustain additional commercial growth above that already proposed in existing commercial areas;

· The risk of NZTA withdrawing approval for a new junction off State Highway 10, should they consider increased capacity will impact the efficiency and safety of the new junction.

Reason for the recommendation

To obtain a Council decision on the location of Sport Fields to allow the project to proceed.

3) Financial Implications and Budgetary Provision

The funding available for the project currently comprises:

1. MBIE Covid 19 Funding - $2m to December 2021

2. Council Annual Plan - $2m to June 2021 (subject to carry forward).

The draft Long-Term Plan includes the following which is subject to Council approval:

1. Financial Year 2021/2022 - $4.2m (Year 1)

2. Financial Year 2022/2023 - $0.8m uninflated value – (Year 2)

3. Financial Year 2029/2030 - $9m uninflated value – (Year 9)

4. Financial Year 2030/2031 - $13.5m uninflated value - (Year 10)

Should a decision be made to change the location of the Stage 1 Sport Fields from the current central location, then approximately $10k to $15k of costs would need to be written off.

Attachments

1. Previous Council Report 2020-02-26 Council Report [A2837703] - A3071957 ⇩

2. Waipapa Sports Hub Agreement Execution - A3071941 ⇩

3. 210115 Bay of Islands Sports Facility - A3071960 ⇩

Compliance schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1. A Local authority must, in the course of the decision-making process,

a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b) Assess the options in terms of their advantages and disadvantages; and

c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.

2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Compliance requirement	Staff assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	High – the use of the balance of the land has the potential for commercial returns.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	N/A
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	Local Relevance to Kerikeri and Waipapa.
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.	N/A
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities).	Sports Codes and the community of Kerikeri and Waipapa.
State the financial implications and where budgetary provisions have been made to support this decision.	As detailed in the report.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report

Extraordinary Council Meeting Agenda

2 February 2021

Bay Of Islands Sports Field Development, Kerikeri

File Number: A2837703

Author: Jeanette England, Assets Manager - District Facilities

Authoriser: Andy Finch, General Manager - Infrastructure and Asset Management

The Council is satisfied that, pursuant to the Local Government Official Information and Meetings Act 1987, the information to be received, discussed or considered in relation to this agenda item should not be made available to the public for the following reason/s:

s7(2)(a) the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(i) the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

Purpose of the Report

To seek approval to purchase 46.77ha (more or less) of land for the proposed Bay of Islands (BOI) Sports Field Development at the agreed price of $4,975,000. This purchase requires an increase to the existing Long-Term Plan (LTP) budget of $1,840,717.

Executive Summary

· There is an ongoing need for Council to address the shortage of sports fields in the Kerikeri area. This issue dates back to 2012 when FNDC undertook a study on football fields in the area.

· Council have previously endorsed the need for additional sports fields through the Long-Term Plan (LTP) process.

· The 2018/2028 LTP included a total budget of $3,134,283 intended for land purchase and development of facilities which was subsequently reforecast to 2019/2020.

· An in-depth property analysis has been undertaken on properties of 10ha or more within the vicinity of Kerikeri.

· This analysis showed three preferred properties of which one, that is currently on the market, has been selected and a Sale and Purchase Agreement, subject to due diligence and Council approval for $4,975,000 has been entered into.

· The Sale and Purchase Agreement is subject to Council Approval, NZTA approval for a proposed junction on State Highway 10, and a due diligence period of two months ending 31 March 2020.

· The property is valued at GV $4,975,000 and RV from Telfer Young is $4,750,000.

· If Council wish to proceed with this purchase, there is currently a budget shortfall of $1,840,717.

Recommendation

That Council approves:

a) The purchase of 46.77ha (more or less) of land at 1936 State Highway 10, Waipapa being Lot 18 DP316057 Identifier 26858 and Lot 17 DP333643 Identifier 137900 for the development of a new BOI Sports Field Development at $4,975,000 plus GST if any.

b) An increase of $1,840,717 to the existing allocated Long-Term budget of $3,134,283 for the purchase of the land at 1936 State Highway 10, Waipapa.

1) Background

In 2012 FNDC undertook a football field capacity study. This study indicated that more fields were required to accommodate the needs of the local community. The Baysports complex has two football fields but it was identified at the time that five additional fields were required to meet demand. There was also a community interest group proposing that Kerikeri needed a sports hub and that a larger property should be considered. This consideration would provide for the football pitches required and an all-inclusive sports facility in the future.

A Multi Criteria Assessment (MCA) was undertaken for Kerikeri properties of 10ha or more. This identified areas of enough land that could be utilised for a multi-sport facility and for future development.

The highest-ranking property in 2012 was on State Highway 10 (SH10), Waipapa and a conditional offer was made on this property subject to a 6-month period for due diligence. The offer subsequently expired and there was no further interest from the vendor to renew.

Following a Needs Analysis and Elected Member workshop, a further MCA exercise was undertaken in November 2019. This identified three properties which would meet the requirements for the provision of sports fields, one of which was the previously identified site on SH10, Waipapa. This was confirmed as the preferred site.

A budget of $1m for land purchase and a further $1.4m for a facility was included in the 2012/2022 LTP. This was subsequently increased to $3.134m in the 2018/2028 LTP.

2) Discussion and Options

Decision RequiredThe recommendation is for Council to purchase the property at 1936 SH10, Waipapa for the purpose of building the additional sports fields required to meet current and future demand.

To purchase this property, the current budget of $3,134,283 needs to be increased by $1,840,717 which will provide the total amount of $4,975,000, being the purchase price.

An additional $2,000,000 has been requested in the 2020/2021 Annual Plan (AP) for this purpose, which will no longer be required if this purchase is concluded prior to 30 June 2020.

Longer Term Benefits of a larger site

Whilst the need for a 10-ha site has currently been identified, a larger sized land purchase would address the current need for additional sports fields and relieve pressure on other facilities currently being utilised, such as the Kerikeri High School playing fields. It would also allow further future sports related and other third-party development of the site, which has the potential to offset the land purchase price to Council.

District Plan (DP) Considerations

The District Planning team were included in the recent MCA and cost benefit exercise. This land is zoned Rural Production which will require amending in the District Plan to allow for the proposed activities on this site.

MCA Findings

As a result of the MCA, Option 1 presents as the most favourable in terms of meeting current and future needs. Staff then undertook boundary site visits on 23 November 2019 to determine suitability, location and site access.

A more detailed report outlining the results and the preferred site is attached.

Option 1: Preferred Site

1936 SH10, Waipapa (46.77 ha)

· Provides a large land area suitable for development of a sporting hub and requires minimal remediation works to make the ground suitable for use as a Sports Hub.

· The proposed site is geographically close to other areas of sport activity.

· The proposed site is currently on the market for sale.

· Good road frontage to SH10

· A Traffic Impact Assessment (TMA) and pre-application meeting with NZTA was undertaken by consultants Haigh Workman (Refer to attached report)

· The TMA has been submitted to NZTA with the entrance to the site being unchanged from the existing entrance and this will form a new side road off SH10 and has the potential to link with Waitotara Drive.

Option 2:

125 Waipapa Road (26.05ha)

· This site had good road frontage along Waipapa Road with the potential to develop good access.

· In close proximity to Kerikeri Sports Complex.

· The land is of an irregular shape which could compromise the full range of activities and facilities.

· Could potentially have a negative impact of neighbouring properties at Blue Marlin Drive and Awhitu Road.

Option 3

1828 SH10 (100.76ha)

· This site has good road frontage for access (subject to NZTA approval)

· Good site with a number of locations available within the land area for development

· There is significant land area within the site that has limited development potential

· There is a significant area of bush within the property.

Future costs

There is a budget in the LTP of $702,902 in 2020/2021 and $718,263 in 2021/2022 to obtain a resource consent and undertake design works.

The total cost and funding mechanisms for developing the site and constructing a new junction off SH10 at Waipapa are currently unknown.

Next Steps

Subject to approval, staff will continue to pursue Option 1 and undertake the further due diligence to confirm suitability.

Council will receive a formal report on options and recommendations for future investment and development required to meet the community needs. Should future recommendations require significant additional capital funding above that already allocated in the 2018/2028 LTP forecasts, then it may be necessary to carry out further community consultation in accordance with LGA requirements. This would be undertaken as part of the 2021/2031 Long Term Plan.

3) Financial Implications and Budgetary Provision

The purchase price of the recommended land is $4,975,000. The current GV is $4,975,000 and RV is $4,750,000.

Funding is allocated in the 2018/2028 LTP for the purchase of this land but is insufficient for this purchase. An additional $1,840,717 is required to enable the purchase to proceed.

Funding of the land purchase is through a ward-based rate and the additional funding required will result in an increase in rates of $3.02.

Further funding has been allocated in the currently LTP in both 2020/2021 and 2021/2022 for the development of a BOI Sports Fields.

Attachments

1. Kerikeri Sports Field Needs Assessment Report - A2850645

2. Kerikeri Sports Field Traffic Assessment V2 - A2850646

3. Preferred Site Summary Report - GLG Consultants - A2850647

Compliance schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1. A Local authority must, in the course of the decision-making process,

a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b) Assess the options in terms of their advantages and disadvantages; and

2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Compliance requirement	Staff assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	This report has a high significance due to changing the sporting facility opportunities and a significant capital cost.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Communities that are healthy, safe, connected and sustainable is the major outcome of this project. The AMP Managing Our Assets – Parks and Recreation 2018-2028 notes the acquisition of additional land for sports fields.
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	This project does not have district wide relevance. Although the acquisition of land for sports fields is in the current LTP the Bay of Islands-Whangaroa Community Board’s opinion should be sought with the required increase in funding.
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.	Iwi consultation will need to be considered once we have the selected property with an offer in place and is in a due diligence period.
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities.	It will only be possible once we have an offer in place and is in a due diligence period.
State the financial implications and where budgetary provisions have been made to support this decision.	The current LTP has approved funding for land acquisition and facility development which is insufficient and partnerships and/or external funding sources will be required for the Sports Hub development.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report