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Hibiscus and
Bays Local Board
16 September
2015
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Use of Orewa
Library car park for Remedial work to Nautilus Building
File No.: CP2015/19472
Purpose
1. This
report seeks a decision on the Prendos New Zealand Limited request for the
use of the Orewa Library car park as part of the remedial work on the Nautilus
building in Orewa.
Executive Summary
2. The
$25.07m legal case regarding the leaky building issues at the Nautilus building
in Orewa has recently been resolved and the remedial work is planned to be
carried out through four stages over a 24 month period from January 2016
through to January 2018.
3. Nautilus’
Project Management company Prendos New Zealand Limited, has advised that the
only viable method of getting building materials to the areas of work are to
either crane or hoist from the ground level as there is no access from the
lower car parks of the building to the podium of the building, except to go
through the two residential lifts and corridors.
4. Prendos
has requested to utilise the Orewa Library car park to securely store building
materials, locate portaloo’s, a lunchroom, a medical centre, and hoist building
materials to the podium level using a building hoist (not a crane) for a 24
month period. It is expected that approximately 100 construction workers would
be onsite at any given time.
5. This
request was presented to the Hibiscus and Bays Local Board at the workshop held
on 29 July 2015 and the implications of this proposal were discussed with staff
from both Libraries and Property departments.
6. This
report provides an opportunity for the local board to make a decision on the
Prendos New Zealand Limited request to use of the Orewa Library car park as
part of the remedial work on the Nautilus building in Orewa.
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Recommendation/s
That the Hibiscus and Bays
Local Board:
a) decline the
request from Prendos for the use of the Orewa Library car park for the
following reasons:
i. increased
noise levels over an extended period of time;
ii. removal of
car parking for Orewa Library customers and staff (leading to car parking
pressure within the area);
iii. heavy
vehicles using the road crossing, endangerment of pedestrians and library
customers;
iv. increased
pressure on the public toilets and no way of policing them;
v. potential
damage of library car park.
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Comments
7. The
$25.07m legal case regarding the leaky building issues at the Nautilus building
in Orewa has recently been resolved. Problems with the building are numerous
and have affected the owners of the building since it was first constructed in
2004.
8. The
primary areas that require repair are the cladding at the exterior of the
building and the apartment decks from levels 4 through to level 12. This is the
tallest building in Orewa and is situated to the south of Orewa Library.
9. The
work is planned to be carried out through 4 stages over a 24 month period from
January 2016 through to January 2018.
10. The
Property Department have been advised that there is no access from the lower
car parks of the building to the podium of the building, other than to go
through the two residential lifts and corridors. The building materials that
will need to be delivered to the areas of work include large window units,
prefabricated exterior cladding, tiles, structural steel and screed.
11. Nautilus’
Project Management company Prendos New Zealand Limited, has advised that the
only viable method of getting these materials to the areas of work are to
either crane or hoist from the ground level.
12. Prendos
has requested that they utilise the Orewa Library car park to securely store
building materials, locate portaloo’s, a lunchroom, a medical centre, and hoist
building materials to the podium level using a building hoist (not a crane)
for a 24 month period. It is expected that approximately 100 construction
workers would be onsite at any given time.
13. Prendos’
other option would be to utilise mobile cranes from either Keith Morris Lane or
Tamariki Avenue. However this is not their preferred option as this would
require a traffic management plan and they envisage that it would cause
disruption to the traffic and local businesses.
14. Adding
to that, Prendos advise that due to having to use a crane on the Tamariki side
of the building would be weather dependant and could extend the contractors
programme, leading to further disruption within the area.
15. This
request was presented to the Hibiscus and Bays local board at the workshop held
on 29 July 2015 and the implications of this proposal were discussed with staff
from both Libraries and Property departments.
Other
Options:
Keith Morris Lane
16. Keith
Morris Lane is a relatively wide street, and sits to the west of the Nautilus.
17. Due
to its size, the northern end of Keith Morris Lane could potentially be
utilised as a secure area to store and hoist building materials. Approximately
23 car parks along the Lane would be required for this purpose. There is one
large Norfolk Pine and several Phoenix Palms along this stretch, however all
appear to be clear of the lane. There is however one large native Pohutukawa
tree located at the north western side of the lane.
18. The
advantage of using Keith Morris Lane is that there are no entrances to any
private businesses at the northern end of the lane, however the side of the
Radiology Laboratory is close to the road. Four other businesses have their
entrances at the southern end of Keith Morris Lane, although commercial
protective hoarding could be used to help protect them from noise and dust etc.
Shipping containers are now used effectively for this very purpose.
Tamariki Avenue sits to the south of
the Nautilus building.
19. Although
this area could also be utilised by Prendos, 10 businesses have their entrances
under and across the road from the Nautilus building. This area also serves as
the main entrance to the Nautilus.
20. Two
large Pohutukawa trees are located adjacent to number eight Tamariki Avenue,
and appear to slightly hang over the road. These could potentially suffer
damage over the two year construction period.
Consideration
Local
Board views and implications
21. This request was
presented to the Hibiscus and Bays Local Board at the workshop held on 29 July
2015 and the implications of this proposal were discussed with staff from both
Library and Property departments.
22. This report
provides an opportunity for the local board to make a decision on the Prendos
New Zealand Limited request to use of the Orewa Library car park as part of the
buildings remedial work on the Nautilus building in Orewa.
Māori
impact statement
23. There are no particular impacts on Maori which are different from
general users of the Orewa Library carpark.
Implementation
24. If the local board decides
against Prendos utilising the Orewa Library car park, a formal communication
would be sent to Prendos declining the request.
Attachments
There are no attachments for
this report.
Signatories
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Authors
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Paul Durling - Property Co-ordinator
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Authorisers
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John O’Brien – Manager Operations, Property
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Hibiscus and Bays
Local Board
16 September
2015
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Auckland Council Property Limited Local Board
Six-Monthly Update 1 January 2015 to 30 June 2015
File No.: CP2015/19504
Purpose
1. To give the
Hibiscus and Bays Local Board an overview of Auckland Council Property
Limited’s (ACPL) activities for the six months 1 January to 30 June 2015.
Executive
Summary
2. In May 2015 the Governing Body voted in favour of merging ACPL with
Waterfront Auckland to form Development Auckland (DA). The merger
responds to feedback from the wider council organisations and seeks to address
some key growth, development, housing provision and funding challenges that
Auckland will face over the next 20 years. As a CCO Development Auckland will
have a commercial orientation, but it will also have explicit public good
outcomes to pursue.
3. Substantive
elements of the purpose of DA relate to urban redevelopment, strategic advice
on council’s property portfolio and the redevelopment of underutilised council
assets to achieve commercial and strategic outcomes.
4. In August the
governing body will receive recommendations from council staff in respect of
the proposed locational priorities for DA.
5. It would be
anticipated that DA will specifically engage with local boards post the formal
establishment on the 1 September 2015 to consider what activities DA can
undertake to benefit their local communities.
6. As this will
be our final six-monthly update to you as ACPL, we are including both the full
business summary as included in previous versions and additionally providing an
outline of some of the strategic and organisational changes we will be making
as we transition to Development Auckland.
7. ACPL activity
detail is broken down by business unit or work-stream, with a focus on local
board specific activities where applicable.
8. Local board
specific supporting detail is included in Attachments A, B and C.
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Recommendation/s
That the Hibiscus and Bays
Local Board:
a) received the Auckland Council Property
Limited Local Board Six-Monthly update 1 January to 30 June 2015.
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Comments
Development Auckland
9. Council
formally approved the establishment of Development Auckland (DA), being a
merger of Waterfront Auckland and Auckland Council Property Limited, in May
2015.
10. The essential
purpose of DA is to contribute to the implementation of the Auckland Plan and
encourage economic development by facilitating urban redevelopment that
optimises and integrates good public transport outcomes, efficient and
sustainable infrastructure and quality public services and amenities. DA will
manage council’s non-service property portfolio and provide strategic advice on
council’s other property portfolios. It will recycle or redevelop sub-optimal
or underutilised council assets and aim to achieve an overall balance of
commercial and strategic outcomes.
11. A number of
objectives fall within the purpose including facilitating the redevelopment of
urban locations and optimising the council’s property portfolio.
12. The process to
establish the operating structure of DA is well advanced and a combined work
stream between DA and council staff is looking at the future priorities for DA
that will provide focus in terms of geographic locations and project
priorities. In respect of the locational analysis work recommendations will be
made to the governing body in August 2015.
13. It would be
anticipated that DA will specifically engage with local boards post the formal
establishment on the 1 September 2015 to consider what activities DA can
undertake to benefit their local communities.
Workshops and Meetings
14. A schedule of
Hibiscus and Bays Local Board workshops and meetings attended by ACPL
representatives from January to June 2015 is included as Attachment A. The list
includes property specific meetings and workshops relating to general property
management and the ongoing portfolio Rationalisation Process.
Property Portfolio Management
15. ACPL manages
property owned by the council and Auckland Transport that are not currently
required for service or infrastructure purposes. These are properties that are
not immediately required for service delivery or infrastructure development but
are being held for use in a planned future project such as road
construction/widening or the expansion of parks. This work will largely remain
unaffected by the transition to Development Auckland.
16. The property
portfolio continued to grow during the last six months and now totals 1347
properties containing 1080 leases, an increase of 41 since our July-December
2014 update. The current property portfolio includes industrial sites and
buildings, retail tenancies, cafés, restaurants, offices and a substantial
portfolio of residential properties.
17. ACPL’s return
on the property portfolio for the year ending 30 June 2015 provides the
shareholder a net surplus of $ 6.8m ahead of budget, with an actual surplus of
$ 29.8 m against budget of $ 23m. The average monthly vacancy rate for the
period is 1.6% which is under the Statement Of Intent targets of 5%.
18. A Properties
Managed schedule is included as Attachment B of this report. The schedule
details:
· Current ACPL-managed commercial and
residential property within the Hibiscus and Bays Local
Board
· Each property’s classification or
reason for retention
· The nature of the property, such as
a café within a library, or a residential property with a tenancy in place
· The budget under which operating
expenditure and lease revenue for the property is reported e.g. regional or
local board.
19. A report
indicating portfolio movement in the local board area is attached as Attachment
C. The report details all new acquisitions including the reason for
acquisition, any transfers and the reason for transfer, and any disposals.
Portfolio Review and Rationalisation
Overview
20. ACPL is
required to undertake ongoing rationalisation of the council’s non-service assets.
This includes identifying properties from within council’s portfolio that may
be suitable for potential sale and development if appropriate. ACPL has a
particular focus on achieving housing outcomes. Identifying potential sale
properties contributes to the Auckland Plan focus of accommodating the
significant growth projected for the region over the coming decades, by
providing the council with an efficient use of capital and prioritisation of
funds to achieve its activities and projects.
Performance
21. July 2014
to June 2015 Target
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UNIT
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TARGET
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ACHIEVED
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COMMENTS
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Portfolio Review
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$30m disposal recommendations
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$69m
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These recommendations include
$65.9m of sites that are identified for development projects.
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22. In setting
future disposal targets ACPL is working closely with the council and AT to
identify potentially surplus properties.
23. 2014/2015
Targets
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UNIT
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TARGET
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COMMENTS
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Portfolio Review
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$30m gross value recommended for sale
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These targets include disposal
recommendations and sales for sites that are identified for place-shaping and
housing development projects
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Development & Disposals
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$30 net value of unconditional sales
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Process
24. Once
identified as a potential sale candidate a property is taken through a
multi-stage Rationalisation Process. The agreed process includes engagement
with: the council, CCOs, local board and mana whenua. This is followed by ACPL
Board approval, engagement with local ward and the Independent Māori
Statutory Board and finally a governing body decision.
Under review
25. Properties
currently under review for future use opportunities via the Rationalisation
Process in the Hibiscus and Bays Local Board area
are listed below. The list includes any properties that may have recently been
presented to the governing body and either approved for sale or development and
sale or designated for retention. Further details are included in Attachment B.
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PROPERTY
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DETAILS
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36
Hibiscus Coast Highway, Silverdale
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Subject
to legacy sale resolution however numerous council stakeholders interested in
further reviewing its potential future use options. Review of this property
is currently on hold pending the completion of North West Planning Silverdale
centre plan.
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Pine
Road, Orewa Pt Allot 473
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Multiple
strips of land at rear of properties on Pine Road and adjoining streets.
Segments were originally acquired for Stormwater/Sanitation have been
completed. Neighbouring property owner enquired about purchasing strip of
land adjacent to their property. Site transferred to ACPL and progressed
through the Rationalisation Process commencing in June 2014. No alternative
service uses were identified during the internal consultation. Local board
endorsed revocation of reserve and the subsequent divestment to neighbour at
their 23 March 2015 meeting. Presented to the governing body on 13 May 2015
and approved for sale. ACPL now preparing for sale.
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Redevelopment/Regeneration and Housing Supply
initiatives
Overview
26. ACPL in its
current form is contributing commercial input into approximately 54 region wide
council-driven regeneration and housing supply initiatives. Involvement extends
from provision of initial feasibility advice through to implementation, with
projects ranging in size from $415k to in excess of $100million.
27. ACPL is also actively
contributing to the Housing Action Plan, which is a council initiative focusing
on non-regulatory efforts to encourage and increase affordable residential
development. ACPL has a Statement of Intent target to undertake five housing
development projects over three years that will improve housing affordability
and the supply of affordable housing encompassing community housing
organisation involvement. ACPL is currently actively working on 13 such
projects.
28. In our
expanded role as Development Auckland we will be extending on this work to play
a much stronger role in urban development through greater scale, enhanced
capability and the ability to partner with others. We will have a key role in
helping deliver the council priority of quality urban living and will have the
mandate to deal with the challenge of Auckland’s rapid growth through
regeneration and investment.
29. Development
Auckland’s roles and responsibilities will be customised to each specific
project initiative and location. A few will be of a high custodial nature
associated with urban regeneration. Some will be at the other end of the scale
with a more facilitative role; and some will be much more able to be delivered
in the short term.
30. ACPL already
works closely with the local boards on ACPL-led developments to ensure we give
effect to the local boards’ place-shaping role. As Development Auckland
engagement will in some areas be of a much broader scope, with the potential
for involvement in master-planning activities for significant land areas.
Optimisation Update
31. Optimisation is a programme of work aimed
to achieve better use of council’s planned and funded service assets. The
programme targets housing and urban regeneration outcomes along with the
delivery of cost-neutral service investment on appropriate sites. ACPL
and ACPD are leading a cross-council project to establish the rules and
methodology for service optimisation activity. The programme will be carried
across to Development Auckland.
32. Local board
engagement and workshops will be provided to demonstrate the scope of
optimisation and the benefits of driving optimal asset performance from
qualifying service property. Timeframes for these workshops have been
pushed out due to Development Auckland transition work. However,
ACPL welcomes suggestions of service sites that may have potential for improved
service function along with housing or urban regeneration outcomes
Local Activities
33. A high level
update on place-shaping and housing initiative and proposal activities in the
Hibiscus and Bays area is outlined in points below.
20
Link Crescent:
i. This
legacy approved 2.0657 ha site has a residential zoning. ACPL prepared a
preliminary master concept plan which provided 57 residential Lots and a
park/wetland area adjacent to land allocated to a planned Family Centre.
Approval to progress sale and development of the land was granted in July 2014.
Due diligence was completed by ACPL in December 2014.
ii. Between
September and February 2014 ACPL worked with subdivision specialists Woods to
complete vendor due diligence on the site to investigate the risks and
challenges in order to physically complete the subdivision obtaining detail on
the topography, ecology, environmental, storm water, infrastructure, civil
design and roading.
iii. Following
a Real Estate Agency request for proposal process agents Legacy Partners were
appointed in May 2014 engaged to assist with the sale of the property. Through
Legacy Partners the project went through a Sale By Expression of Interest (EOI)
process commencing June 2015 and completing 14 July 2015.
iv. The EOI phase was
supported by a communications and marketing strategy to ensure maximum market
reach and information sharing with key stakeholders. Substantive EOI’s were
received from six parties. Due to the quality of submissions follow up
interviews were held with all six organisations and further detail requested. Subsequently a short list was identified and
parties were asked to submit their full and final offers.
v. Negotiations continue ACPL
anticipates selecting the preferred partner by the end of August 2015 and will
meet with the local board to provide an update following that decision.
Whangaparaoa
Affordable Rental Homes Project:
i. There are several vacant sections on Whangaparaoa Road that are held
for future transport schemes. ACPL is investigating the viability of using
these sites for affordable rental homes which can be relocated when the site is
required. Auckland Transport is currently reviewing their transport project
land holdings and intends to confirm which sites are available during
September/October 2015.
Acquisitions
Overview
34. ACPL continues
to support council and AT programmes and projects by negotiating required
property acquisitions. All such acquisitions are funded through approved
council or AT budgets. We also provide advice to assist with budgets, business
cases and strategy to support an acquisition.
35. From 1 January
2015 to 31 June 2015, 49 property purchases were completed for the council and AT.
All of the property acquisitions met independent valuation thresholds agreed
with AT, the council and Public Works Act 1981 requirements.
Council Acquisitions
36. Of the 49
property acquisitions over the past six months, 12 were purchased to meet council
legal, open space and storm water requirements and to contribute to City
Transformation projects. These included the following acquisitions in or
neighbouring the Hibiscus and Bays Local Board area.
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PROPERTY
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STAKEHOLDER
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WORK TYPE
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LOCAL BOARD
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92 Hobsonville Road, Hobsonville
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City Transformation
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Open Space
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Upper Harbour
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90 Hobsonville Road, Hobsonville
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City Transformation
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Open Space
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Upper Harbour
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88 Hobsonville Road, Hobsonville
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City Transformation
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Open Space
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Upper Harbour
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84-86 Hobsonville Road, Hobsonville
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City Transformation
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Open Space
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Upper Harbour
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106-108 Hobsonville Road, Hobsonville
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City Transformation
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Open Space
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Upper Harbour
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179 Matua Road, Huapai
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Parks, Sports & Recreation
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Open Space
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Rodney
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3202 South Head road, South Head
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Community Policy & Planning
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Open Space
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Rodney
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Auckland Transport Acquisitions
37. The remaining
37 properties were acquired on behalf of AT. The focus was on acquisitions to
support major transport projects including AMETI (five acquisitions) City Rail
Link Property Acquisition (seven acquisitions), Redoubt Road Mill Road Corridor
Upgrade (six acquisitions) road widening across the region (10 acquisitions)
and Northern Strategic Growth Area (one acquisition). Full details of relevant
AT projects and associated acquisitions will come to the local board directly
from AT.
Business Interests
38. ACPL manages
eight business interests region wide on council’s behalf. This comprises two
forestry enterprises, two landfills and four quarries. There are currently no
ACPL managed business interests in the Hibiscus and Bays Local
Board area.
Consideration
Local
Board views and implications
39. This report is
for the Hibiscus and Bays Local Board’s
information.
Māori
impact statement
40. Whatungarongaro te tangata, toitū te whenua. The importance of
effective communication and engagement with Māori on the subject of land
is understood. ACPL has accordingly developed robust engagement with the 19
mana whenua groups for our core business activities. We are currently working
with Waterfront Auckland on a future strategy for Development Auckland.
41. Key engagement activities currently include: identifying
cultural significance concerns regarding disposal properties, flagging
commercial interests, development partnering discussions and issues relating to
property management such as protection of wāhi tapu or joint management
arising from the resolution of Treaty Settlements. ACPL also engages with
relevant mana whenua in respect of development outcomes for ACPL lead projects
where appropriate. As Development Auckland we will work with iwi to consolidate
and build on strengths from ACPL and Waterfront Auckland’s approaches along
with successful work being done elsewhere in the council family.
42. ACPL
additionally undertook to be part of council’s Māori Responsiveness Plan
(MRP) pilot programme. The project’s key output is an operational document
outlining ACPL’s contribution to council’s strategic and operational
commitments to Māori. The MRP was finalised and approved by the ACPL Board
in December 2014 and is in the implementation phase. A copy of this is
available on the ACPL website. This work will be carried over and reflected in
the new organisation.
43. As we
transition to Development Auckland, the local board can expect to be advised or
involved as appropriate in any discussions that arise in the local board’s
area.
Implementation
44. There are no implementation
issues.
Attachments
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No.
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Title
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Page
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aView
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Schedule of Meetings and Workshops
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21
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bView
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Properties Managed by ACPL in the Local Board area
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23
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cView
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Property Movement in the Local Board area
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27
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Signatories
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Authors
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Caitlin Borgfeldt Local Board Liaison
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Authorisers
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David Rankin Chief Executive
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