I hereby give notice that an ordinary meeting of the Manurewa Local Board will be held on:




Meeting Room:



Thursday, 10 September 2015


Manurewa Local Board Office
7 Hill Road


Manurewa Local Board








Angela Dalton


Deputy Chairperson

Simeon Brown



Michael Bailey



Angela Cunningham-Marino



Hon George Hawkins, QSO



Danella McCormick



Ken Penney



Daryl Wrightson



(Quorum 4 members)




Lee Manaia

Local Board Democracy Advisor


7 September 2015


Contact Telephone: (09) 262 5421

Email: lee.manaia@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz



Manurewa Local Board

10 September 2015


ITEM†† TABLE OF CONTENTS††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† PAGE

32††††††† Auckland Council Property Limited Local Board Six-Monthly Update 1 January to 30 June 2015†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 5 ††


Manurewa Local Board

10 September 2015


Auckland Council Property Limited Local Board Six-Monthly Update 1 January to 30 June 2015


File No.: CP2015/18985





1.†††††† To give the Manurewa Local Board an overview of Auckland Council Property Limitedís (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 councilís 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 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.



That the Manurewa Local Board:

a)††††† accepts the Auckland Council Property Limited Local Board Six-Monthly update 1 January to 30 June 2015.




Development Auckland

9.†††††† Council formally approved the establishment of Development Auckland, 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 councilís non-service property portfolio and provide strategic advice on councilís 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 councilís 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.

13.†††† It would be anticipated that DA will specifically engage with Local Boards post the formal establishment on the 1 September to consider what activities DA can undertake to benefit their local communities.


Workshops and Meetings

14.†††† A schedule of Manurewa 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 AT 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, cafťs, restaurants, offices and a substantial portfolio of residential properties.

17.†††† ACPLís 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 (SOI) targets of 5%.

18.†††† A Properties Managed schedule is included as Attachment B of this report. The schedule details:

ß Current ACPL-managed commercial and residential property within the Manurewa †Local Board

ß Each propertyís classification or reason for retention

ß The nature of the property, such as a cafť within a library, or a residential property with a tenancy in place

ß The budget under which operating expenditure and lease revenue for the property is reported eg 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


20.†††† ACPL is required to undertake ongoing rationalisation of the councilís non-service assets. This includes identifying properties from within councilís 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.


21.†††† July 2014 to June 2015 Target





Portfolio Review

$30m disposal recommendations


These recommendations include $65.9m of sites that are identified for development projects.


22.†††† In setting future disposal targets ACPL is working closely with the council and AT to identify potentially surplus properties.

23.†††† 2014/2015 Targets




Portfolio Review

$30m gross value recommended for sale

These targets include disposal recommendations and sales for sites that are identified for place-shaping and housing development projects

Development & Disposals

$30 net value of unconditional sales



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 Manurewa 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.



20 Mcannalley Street, Manurewa East

Presented to committee on 7 March 2013. Decision deferred pending further discussion with local board. On 15 August 2013 Manurewa Local Board resolved to recommend the property for sale with additional recommendation to the Ministry of Education that they consider land purchase as part of the Ministry of Education, Early Childhood Education, TAP Scheme Funding for groups or organisations applying for such. The site was re-presented to the Governing Body for decision in August 2014 and cleared for sale. Sold in March 2015, settled April 2015.

75 Waimahia Avenue, Weymouth

Vacant section on foreshore of Weymouth- linkage to reserve at rear. Cleared for sale by governing body in May 14. Now preparing for sale.

18D & 22D Walpole Avenue, Manurewa

Partial section. Transferred from ACPD to non-service in September 2013. No current use or potential use as access to rear properties (49D Scenic Drive, 18D & 22D Walpole Ave). The Rationalisation Process for this property commenced in June 2014.  No alternative service uses were identified.  Presented to the Governing Body on 20 August 2015 and cleared for sale.

49D Scenic Drive, Manurewa

Partial section. Transferred from ACPD to non-service in September 2013. No current use or potential use as access to rear properties (49D Scenic Drive, 18D & 22D Walpole Ave). The Rationalisation Process for this property commenced in June 2014.  No alternative service uses were identified.  Presented to the Governing Body on 20 August 2015 and cleared for sale.


Redevelopment/Regeneration and Housing Supply initiatives


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 an SOI target to undertake five housing development projects over three years that will improve housing affordability and the supply of affordable housing encompassing CHO 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 Aucklandís rapid growth through regeneration and investment.

29.†††† Development Aucklandís 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 boardsí 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 councilís 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 Manurewa area is outlined in points below.

34.†††† 20 Barrowcliffe Place, Manukau: This approximately 5 ha site on the southern side of the South Western Motorway was transferred from ACPD as non-service in March 2014 and has been evaluated for potential residential development. ACPL commenced the Rationalisation Process in April 2014.  No alternative service uses were identified. The property was presented to the Governing Body in September 2014 and approved for disposal and development.


35.†††† ACPL is expecting individual title to the land to be available in October. Intensive terraced housing is currently being proposed with a view toward providing 145 terraced houses on the site.




36.†††† 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.

37.†††† 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

38.†††† 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 Manurewa Local Board area.





398S Weymouth Road, Weymouth

Community Policy & Planning

Open Space


84 Cosgrave Road, Papakura

Storm Water

Storm Water



Auckland Transport Acquisitions

39.†††† 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

40.†††† ACPL also optimises the commercial return from assets it manages on councilís behalf. This comprises two forestry enterprises, two landfills and four quarries. There are currently no ACPL managed business interests in the Manurewa Local Board area.


Local Board Views and Implications

41.†††† This report is for the Manurewa Local Boardís information.

Māori Impact Statement

42.†††† 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.

43.†††† 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 Aucklandís approaches along with successful work being done elsewhere in the council family.

44.†††† ACPL additionally undertook to be part of councilís Māori Responsiveness Plan (MRP) pilot programme. The projectís key output is an operational document outlining ACPLís contribution to councilís 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.

45.†††† 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 boardís area.


46.†††† There are no implementation issues.






Schedule of meetings and workshops



Properties Managed by ACPL in the Local Board area



Property movement in the Local Board area


† ††††



Caitlin Borgfeldt - Local Board Liaison


David Rankin - Chief Executive


Manurewa Local Board

10 September 2015


Manurewa Local Board

10 September 2015


Manurewa Local Board

10 September 2015