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Devonport-Takapuna Local Board
12 December 2023
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Proposed
new community ground lease for Devonport Squash Club Incorporated at Woodall
Park, Narrow Neck
File No.: CP2023/18040
Te take mō te
pūrongo
Purpose of the report
1. To
grant a new community ground lease for Devonport Squash Club Incorporated
located at Woodall Park, R 2 Old Lake Road, Narrow Neck
Whakarāpopototanga matua
Executive summary
2. Devonport
Squash Club Incorporated seeks a new community ground lease to continue
occupation and operation from the club-owned building and improvements at
Woodall Park, R 2 Old Lake Road, Narrow Neck.
3. The
club currently holds an existing community ground lease which has passed the
final expiry date of 30 September 2021. The lease is holding over on a
month-to-month basis until terminated or a new lease is granted.
4. The
new lease was identified and agreed to be included as part of the Customer and
Community Services: Community Leases Work Programme 2023/2024 by the
Devonport-Takapuna Local Board at its 18 July 2023 local board meeting
(resolution number DT/2023/134) for staff to progress during
2023/2024.
5. The
club aims to promote the sport of squash in competitive and social forms in the
community. Its facility also houses a gymnasium which offers a variety of
programmes.
6. The
above-mentioned activities predominantly align with the Devonport-Takapuna
Local Board Plan 2023 Outcomes such as:
· Tō Tātou Taiao / Our Environment
· O Tātou Tāngata / Our People, as well as
· Tō Tātou Hapori / Our Community and Facilities.
7. The
club has provided all required information, including financials showing that
it has sufficient funds and is being managed appropriately. It has all the
necessary insurance cover, including public liability and building insurance in
place.
8. In
accordance with the Auckland Council Community Occupancy Guidelines 2012,
community organisations that own their buildings have an automatic right to re‑apply
for a new lease at the end of their occupancy term. This right is being
exercised by the club through the application for a new lease.
9. On 8
June 2023, the Annual Budget was approved by the council’s Governing
Body, which included amendments to the Community Occupancy Guidelines. The
amendments increased the rent fee for a ground lease from $1.00 plus goods and
services tax (GST) per annum if demanded to $1,300.00 plus GST per annum taking
effect from 1 July 2023 (resolution number GB/2023/101).
10. Given that the
club applied for the proposed new lease in November 2021, prior to the Annual
Budget amendments, staff recommend that the rental be $1.00 plus GST per annum
if demanded in accordance with the guidelines operative at the time of the
application.
11. To maintain
alignment with the revised Community Occupancy Guidelines, staff have
recommended a phased approach and that the rent be reviewed within five years
of the commencement date. This will give the club an opportunity to develop a
reserve fund to meet the revised rental charges.
12. Staff
undertook a site visit in December 2021 and a further site visit was undertaken
in April 2022 to review the exterior of the building. It was noted that
the facility is well maintained and the club have a maintenance plan to ensure
the facility is well looked after.
13. A
Community Outcomes Plan has been agreed upon with the club in order to
determine the community benefits it will provide. This will be appended as a
schedule to the lease agreement.
14. The club and its
primary activity are contemplated in the current Woodall Park Reserve
Management Plan 1997, therefore mana whenua engagement and public notification
on the proposed new lease is not required.
15. Staff have
consulted with subject matter experts within the council and are supportive of
a new lease to the club.
16. Climate change
has the potential to affect the club’s premises as it is located in a
flood-prone or coastal inundation zone. As such, the premises is elevated above
flood levels, and its freeboard has remained unaffected by any storms,
including Auckland's most severe storms to date.
17. The building's
lower level is made of concrete block, which is more resistant to water
than standard wood exteriors. The ventilation and drainage path beneath the
subfloor is operational and has protected the premises from subsequent floods.
18. This report
recommends that a new ground lease be granted to the club for a term of 10
years with one 10-year right of renewal (20-year total term), in accordance
with the provisions of the Reserves Act 1977 and the terms and conditions under
the Auckland Council Community Occupancy Guidelines 2012.
Ngā tūtohunga
Recommendation/s
That the Devonport-Takapuna
Local Board:
a) tuku /
grant, under Section 54(1)(b) of the Reserves Act 1977,
a new community ground lease for Devonport Squash Club Incorporated for approximately 802 square metres (more or less) located at
Woodall Park, R 2 Old Lake Road, Narrow Neck on the
land legally described as Lot 2
Deposited Plan 19288 & Part Deposited Plan 693, comprised in record of title NA442/100 (part-cancelled) and Section 6 Block VI Rangitoto Survey
District, comprised in record of title NA33A/864 (as per Figure 1 and Attachment A –
Site Plan), subject to the following terms and conditions:
i) term
– 10 years commencing 12 December 2023, with one (1) 10-year right of
renewal commencing 12 December 2033, effecting final
expiry on 11 December 2043
ii) rent – $1.00 plus goods and services
tax (GST) per annum if demanded
iii) rent
review – five (5) years, on the fifth anniversary of the commencement
date, and thereafter in accordance with the standard rent review provisions for
community leases
iv) community outcomes plan – to be appended to the lease as a schedule of the lease agreement
(as per Attachment B – Community Outcomes Plan).
b) whakaae
/ approve all other terms and conditions in accordance with the
provisions contained in the Reserves Act 1977 and the Auckland
Council Community Occupancy Guidelines 2012.
Horopaki
Context
19. Local
boards have the allocated authority relating to local recreation, sport and community facilities, including community
leasing matters.
20. The
Devonport-Takapuna Local Board approved the Customer
and Community Services: Community Leases Work Programme 2023/2024 on 18
July 2023 (resolution number DT/2023/134).
21. The
progression of this new lease proposal to Devonport Squash Club Incorporated at
Woodall Park, R 2 Old Lake Road, Narrow Neck is part of the approved work
programme. This report considers the new community ground lease as approved on
the work programme.
Land, building/s and lease
22. Woodall Park is located in Narrow Neck (refer to Figure 1 and
Attachment A - Site Plan). The land is legally described as Lot 2 Deposited Plan
19288 & Part Deposited Plan 693, comprised in record of title NA442/100
(part-cancelled) (North Auckland Registry), and Section 6 Block VI Rangitoto
Survey District, comprised in record of title NA33A/864 (North Auckland
Registry). The land is held in fee simple by Auckland Council as a classified
recreation reserve, subject to the Reserves Act 1977.
23. Devonport
Squash Club Incorporated holds an existing community ground lease for the
club-owned building and improvements. The proposed leased area is approximately
802 square metres (more or less) delineated in red below.
Figure 1: Site Plan – Woodall Park
delineated in yellow, leased area for the club delineated in red
24. For
a club-owned building, all operational and maintenance costs are borne by the
leaseholder. These costs are funded from membership fees, fundraising, hireage
at a reasonable community rate, as well as external
funding, to mention a few.
25. Over
the next few years, the club anticipates undertaking and funding the projects
below, with completion scheduled for 2026:
· replacing squash court lights
· replacing the roof
· installing solar panels
· installing an air ventilation system, and
· replacing heat pumps.
26. Furthermore,
the premises is primarily used by the club to:
· provide opportunities for the public to play squash
· provide sporting opportunities for children and women
· operate a gymnasium facility and a variety of activities including
pilates, dojo, yoga, physiotherapy, and sports massage
· hold interclub competitions and tournaments, as well as
· organise social gatherings for the community to enjoy.
Devonport Squash Club Incorporated
27. The
club became registered as an incorporated legal entity on 11 February 1975, as
well as a charity on the Charities Services register on 30 June 2008. The
primary objective of the club is to promote squash in a competitive and social
setting. It is affiliated with Squash Auckland and New Zealand, and it has
a robust governance structure.
28. There
are approximately 292 members ranging in age from 14 to 51 years and older. The
facility is accessible to anyone for a weekly social night, with choices
to play on a pay-as-you-go basis or by joining the club for unrestricted access
to the courts.
29. There
are a variety of coaching sessions available for women and children, including
holiday and after-school programmes, as well as a women's squash coaching
programme. Competitive squash consists of multiple interclub teams competing in
an Auckland-wide competition and hosting tournaments as part of the Squash
Auckland schedule.
30. The
club has always been a multifunctional facility, and in addition to squash,
there is a physiotherapist on-site, as well as a group exercise room that is
utilised by a variety of trainers and organisations for activities such as
pilates, yoga, and martial arts for a reasonable community charge, to mention a
few. First aid courses are also provided by the club and on-site.
31. The
unmanned gymnasium on-site is operational seven days a week, from 5:00 a.m. to 8:00 p.m. Outside of planned games,
tournaments, club nights, and coaching, the squash courts are also available
for booking seven days a week.
32. The
club has enhanced and renovated the facility over the years, including:
· replacement of the external deck
· improvements to the gymnasium area, such as new carpet and
equipment, as well as improvements to the exercise room to make it usable for a
variety of activities
· additional external lighting to make the car park area safer at
night
· refurbishing the bathrooms, toilets, changing rooms, as well as the
squash courts to name a few.
33. Its
current community ground lease with the council commenced on 1 October 2001
with a final expiry date of 30 September 2021. The lease for the club is
holding over on a month-to-month basis on the same terms and conditions until
terminated or a new lease is formalised.
Tātaritanga me ngā
tohutohu
Analysis and advice
34. Under the Auckland Council Community Occupancy Guidelines 2012,
community organisations that own their own buildings have an automatic right to
re‑apply for a new lease at the end of their occupancy term. The club is
exercising this right by applying for a new lease. The Devonport-Takapuna Local
Board has discretion to vary the term of the lease if it wishes. However, the
Community Occupancy Guidelines suggest that where the term is varied, it aligns
to one of the recommended terms.
Public notification and engagement
35. The
adopted Woodall Park Reserve Management Plan 1997 contemplates the club and its
primary activity and consequently public notification and mana whenua engagement
is not required.
Assessment of the application
36. The
club has submitted a comprehensive application supporting
the new lease proposal and is able to demonstrate its ability to
deliver its services.
37. It
has provided financials, which indicate that funds are being managed
appropriately and there are sufficient funds to meet its liabilities.
38. The club
has all necessary insurance cover, including building and public liability
insurances, in place.
39. It
has a maintenance schedule in place to meet the necessary building renewals and
general maintenance required for the facility's upkeep and longevity.
40. Staff
undertook a site visit in December 2021 and a further site visit was undertaken
in April 2022 to review the exterior of the building. It was noted that
the facility is well maintained and the club have a maintenance plan to ensure
the facility is well looked after.
.41. It
provides a valuable service to the local community by providing
opportunities to participate in squash and other related sporting activities,
as well as operating a gymnasium and making its facility available at a reasonable
community rate to support initiatives and activities within the local
community, sport clubs, and community organisations.
42. A
Community Outcomes Plan has been developed to identify the benefits that the
club will provide to the community. This will be
attached as a schedule to the lease agreement and to the report as Attachment
B.
43. Staff
recommend that a new community ground lease be granted to Devonport Squash Club
Incorporated for a term of 10 years commencing from 12 December 2023 with one
10-year right of renewal, effecting final expiry on 11 December 2043.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
44. Climate change has the potential to impact the lease, as the leased
area is located in a flood-sensitive and coastal inundation zone as illustrated
in the excerpt below. The club has been advised by staff that its facility is
significantly vulnerable to the potential impacts of climate change.
45. The
club facility is elevated above flood levels, and its freeboard has not
been affected by any storms, including Auckland's most severe storms to date.
As the facility is surrounded by a park with extensive storage capacity, its
remaining freeboard will provide flood protection for many decades. The
ventilation and drainage path beneath the subfloor is functioning well and has
safeguarded the facility from subsequent floods.
46. Additionally,
the club will seek to mitigate any potential future risks to its facility
through ongoing asset improvements and maintenance.
Figure 2: Flood Viewer – The
club’s premises circled in red
47. To
improve environmental outcomes and mitigate climate change impacts, the council
advocates that the leaseholder:
· use sustainable waste, energy and water efficiency systems
· use eco labelled products and services
· seek opportunities to reduce greenhouse gas emissions from
lease-related activities
48. All
measures taken are aimed at meeting council’s climate goals, as set out
in Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan, which
are:
· to reduce greenhouse gas emissions to reach net zero emissions by
2050 and
· to prepare the region for the adverse impacts of climate change.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
49. Subject
matter experts within the council such as the Community Broker, Facilities
Manager, Lead Financial Advisor, Parks and Places Specialist, as well as the
Sports and Recreation Lead, have been consulted. They are supportive of the
proposed new lease to the club.
50. In
addition, Healthy Waters have relayed the following information regarding the
club's occupancy in a flood-prone location:
· staff are updating the model for the Wairoa catchment and the team
only have the Rapid Flood Hazard Assessment (RFHA) modelling for the catchment
· the current catchment model predicts the 100-year ARI (Annual
Recurrence Interval) maximum flood level at the squash club is approximately
0.95m (metres) Reduced Level (based on Auckland 1946 datum) and the depth of
the flood varies from 0.15m to 1.3m. Refer to the map below.
Figure 3: Healthy Water’s database
· the predicted maximum flood levels and flood depths are based on
future land use development and increased rainfall due to climate change
· the RFHA modelling assumes all culverts and pipes are blocked and
all ground depressions are filled.
51. The proposed new lease has no identified impact on other parts of
the council group. The views of council-controlled organisations were not
required for the preparation of this report’s advice.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
52. The
proposed lease will benefit the community by enabling initiatives that promote
and enhance squash and related activities, as well as a variety of sport and
recreation, and health and well-being initiatives that are delivered from the
facility for Narrow Neck and its surrounding communities.
53. The
Devonport-Takapuna Local Board has been updated on the lease item, conveying
the next steps as specified in the Parks and Community Facilities Department
local board report for May 2023 and forwarded to the board in June 2023.
Furthermore, the assessment of the application was workshopped with the local
board on 10 October 2023. The local board indicated their support, in
principle, of the new lease proposal.
54. The
delivered activities predominantly align with the Devonport-Takapuna Local
Board Plan 2023 outcomes and objectives as shown below.
Table 1: 2023-2026 Local Board Plan outcomes
and objectives
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Outcome
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Objective
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Tō Tātou Taiao / Our
Environment
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Our natural
and built spaces are cared for and we put water quality and the environment
front and centre.
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O Tātou Tāngata / Our People
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We value
inclusivity, diversity, and resilience.
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Tō Tātou Hapori / Our Community
and Facilities
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Our
community has access to quality services in facilities that meet their needs.
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Tauākī whakaaweawe
Māori
Māori impact statement
55. Te
Kaunihera o Tāmaki Makaurau is committed to meeting its responsibilities
under Te Tiriti o Waitangi and its statutory obligations and relationship
commitments to Māori. The council recognises these responsibilities are
distinct from the Crown’s Treaty obligations and fall within a local
government Tāmaki Makaurau context.
56. These
commitments are articulated in the council’s key strategic planning
documents such as the Auckland Plan 2050, the 10-year Budget Plan 2021-2031
(Long-term Plan), the Auckland Unitary Plan, individual local board
plans and in Whiria Te Muka Tangata, the council’s
Māori Responsiveness Framework.
57. Community leasing aims
to increase Māori wellbeing through targeted support
for Māori community development projects.
58. The
club has agreed, through the Community Outcomes Plan, to deliver Māori
Outcomes that reflect their local community as per Attachment B of this report.
The lease will benefit Māori and the wider community through health and
wellbeing benefits, and the opportunity for collaboration when the leaseholder
is not using the premises.
59. Furthermore,
in order to make the club’s facilities more accessible to a wider range
of socioeconomic levels in the area, it offers a special membership to the
local Royal New Zealand Navy, which includes Māori personnel.
60. According
to Tatauranga Aotearoa / Stats NZ, 5.5 per cent of Te Hau Kapua /
Devonport-Takapuna Local Board residents identified as Māori in the 2018
census, compared to 11.5 per cent in the Tāmaki Makaurau region. The club
are committed to increasing Māori participation which is reflected in its
Community Outcomes Plan.
Ngā ritenga
ā-pūtea
Financial implications
61. Staff
have consulted with the Financial Strategy and Planning Department of the
council. No concerns were raised regarding the financial implications for the
new lease to Devonport Squash Club Incorporated.
62. Ongoing
maintenance and capital expenditure of the assets on-site will be covered by
the club which is accounted for in current and future budgets.
63. On 8 June
2023, the council's Governing Body approved the Annual Budget, including amendments to the Auckland Council Community Occupancy Guidelines 2012,
which increased the rent fee for a ground lease from $1.00 plus GST per annum
if demanded to $1,300.00 plus GST per annum, effective 1 July 2023 (resolution
number GB/2023/101).
64. Given that
the club applied for the proposed new lease in November 2021, the recommendation
is to grant a lease at the level of rent ($1.00) contemplated in the guidelines
at the time of the application and prior to the Annual Budget amendments
approved in June 2023.
65. If the local
board decides to retain the rent at $1.00, the board will not be required to
supplement the community lease revenue budget. During the first term, however,
the local board will not benefit from the additional revenue of $1,299.00 per
annum. Staff have recommended that the rent be reviewed within five years of
the commencement date to align the rent level with the revised levels
introduced in July 2023.
66. All costs
relating to the preparation of the lease agreement and subsequent documentation
are borne by the Parks and Community Facilities department of the council.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
67. Should the
local board resolve not to grant the proposed new community ground lease to
Devonport Squash Club Incorporated, the club’s ability to undertake all
current and future activities will be negatively impacted. This will have an
adverse impact on the achievement of the desired local board plan outcomes.
68. The proposed
new lease affords the club security of tenure, enabling it to attend to the
scheduled maintenance of its facility. In the event, that the new lease is
not granted, there is a risk associated with maintenance, building renewals and
possible improvements. The council will be liable for the assets regardless of
whether budget is allocated to or identified for renewals. The renewal of the
assets will also not appear in the annual work programme.
69. In addition,
the club’s ability to pursue grants and funding opportunities will be
severely impacted.
Ngā koringa ā-muri
Next steps
70. Subject to the Devonport-Takapuna Local Board’s approval
to grant the proposed new community ground lease for Devonport
Squash Club Incorporated, staff will engage with the club to finalise the lease
agreement and subsequent documentation in accordance with the decision of the
local board.
Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇩
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Site Plan
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17
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b⇩
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Community Outcomes Plan
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19
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Ngā kaihaina
Signatories
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Author
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Tai Stirling - Community Lease Specialist
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Authorisers
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Kim O’Neill - Head of Property & Commercial
Business
Trina Thompson - Local Area Manager
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