Asset Sales Program – Tranche 3

Asset Sales Program – Tranche 3

Asset Sales Program – Tranche 3
Consultation for this project has now concluded

Council is seeking community feedback about the next stage (Tranche 3) of the asset sales program that is part of its business recovery plan. 

Council’s business recovery plan required a review of Council’s property assets that could be sold to assist with its financial situation. Properties that have been identified in this next stage for sale have been grouped into four categories due to the different legislative and disposal processes involved. These groupings and the descriptions of the properties are:

  1. Operational classified and appropriately zoned land, including:
    • 15 groups of operational classified land located across the Coast.
    • 6 properties located at Manning Road, The Entrance that are identified as affordable housing sites and may be sold for affordable housing projects. 
    • 2 land parcels at 8 and 10 Bay Village Road, Bateau Bay once a new library facility is built within the Bateau Bay Square shopping centre. The land at 10 Bay Village is the site of the existing library and the other adjoining land is vacant. The conditions for the sale of these sites require that a new modern library facility is provided for the community.
    • 7 land parcels on Wyong Road Tuggerah with environmental zoning, to be sold to the Mariners FC who plan to continue to maintain and manage this green space as part of a Hotel development. 
  2. Operational classified land which requires rezoning, including:
    • 2 properties located at Bushells Ridge Road, Kiar and Bushells Ridge that will have planning proposals lodged by Council to rezone from RU6 Transition to the IN1 General Industrial enabling employment on these sites.
  3. Land parcels where Council is seeking reclassification from community to operational land, and requiring Council to prepare a planning proposal to rezone the land prior to sale:
    • 10 groups of community classified land, including: 
      • 2-4 Park Road, The Entrance will retain the existing bowling club as part of the condition of sale to Mingara Recreation Club to build a new club house. 
      • 336-350 Terrigal Drive with the Basketball Stadium and public parking to be retained with the intention to sell to the Breakers Country Club so they can invest in additional basketball courts.
      • 191 Wallarah Road, Kanwal with current use as the Wyong District Youth and Community Centre able to be incorporated in the sale process to the Wyong Rugby League Club who plan on upgrading facilities to an improved standard. 
  4. Land parcels where Council is seeking reclassification from community to operational prior to sale:
    • 7 groups of community classified land, including: 
      • 219 Albany Street, North Gosford, where Council intends to issue an EOI to seek a partner to develop this area to its full potential, while ensuring the existing tenants will be accommodated in new improved facilities. 
      • 75 Bungary Road, Norah Head which contains a community hall that is dilapidated beyond repair and requiring demolition and 4 lots that may be sold or used subject to the Council Affordable Housing (CAHL) proposal. 

A comprehensive list of all of the properties identified is available here

How could you get involved? 

The community were invited to:

The community were able to submit questions via our online tool up until 4.30pm 25 May 2021 (this tool closed early to ensure that responses were able to be provided prior to the close of consultation), answers to these questions are available below. 

Feedback was accepted until between 30 April and 28 May 2021 (5pm). 

Council will receive a further report in consideration of all feedback that was received during the consultation period. 

Something you need to know: Under the Government Information (Public Access) Act, 2009 (GIPA ACT), members of the public can seek access to the submissions and Council cannot give assurance that the document will remain confidential.
 

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Name
Joe O'Connor
Why is Council selling assets?

The sale of Council assets is crucial to deliver much needed capital to improve Council’s financial position, provide assurance to our lenders and to support the ongoing sustainability of Council and the services we provide to the community. 

Where are the properties located?

Properties are located across the Coast in various locations. 

How do you decide what to sell?

Property being considered for sale is assessed against Council’s Community Strategic Plan, strategic planning issues as well as whether the property could be better utilised or its potential better realised by the private sector. For instance, some of the asset sales are also expected to provide additional benefits for our region and the community, such as local jobs and a boost to the economy, due to the planned land use and zoning. Due diligence and a sound strategic approach have been undertaken in the asset sale program to ensure the best short and longer term outcomes are achieved for Council, the region and the community.

Is the process independent?

The evaluation process has included the review of proposed sites against Council resolutions and historical records; ensuring that Council retains ownership of land that is needed for its current and future service delivery, that any sale would not contravene legislative requirements, consultation with internal and external stakeholders affected by the disposal of these assets, and consultation and discussion with the an independent Property Advisory Committee.

How is the value of the properties being determined?

Properties are either being sold through a competitive sales and marketing campaign to ensure the best sale price or in the case of direct sales with a proposed buyer, properties are sold for no less than the market value, which will determined by an independent valuer.

Why is this called Tranche 3? Has there already been other asset sales stages?

Yes. Council resolved on 30 November 2020 to progress with the sale of other properties and in December 2020 advised it was progressing with the sale of a group of 16 properties that had been resolved to be sold previously by the former Wyong Council. The properties in Tranche 3 have been of greater complexity and required considerable due diligence, requiring historical issues to be resolved, such as the acquisition details and land status. 

How much land is Council selling overall?

Council manages approximately 7,000 parcels of land; noting though, that any one park or reserve could be made up of several individual land parcels. However, it must be stressed that Council is only considering selling 1% of its property portfolio.  

What is the process for selling the sites? Does each sale have to come back to Council to be included in any sale?

Once Council has resolved to sell any property, the Chief Executive Officer (CEO) is authorised to finalise the terms of the sale in accordance with the Land Transaction Policy adopted by Council. The properties will either require an independent valuation or to be sold for not less than Council previously paid for the sites. The properties will be listed with agents and competitively marketed for the highest market price. The terms of the sales do not need any further Council resolution as long as they sell for more than the independent valuation or sell for more than Council previously paid for the sites.

How much does Council expect to get from these asset sales?

These properties have been identified as they are likely to attract interest and a positive financial return for Council. While it is hard to estimate final sale’s price on the complete tranche at this time, Council will only be selling for market value and with that expectation it is expected to improve Council’s financial position by at least $50M.

What is an independent Property Advisory Committee and their function in the process?

Council has engaged with independent property development experts Michael Filo and Steve Rowe to execute the functions of the independent Property Advisory Committee.  Their function is to provide an independent panel to review asset sales program prior to going to Council, review and advise on conditional sales for commercial and industrial sales and to review opportunities and advise Council on potential highest and best use analysis to ensure Council is receiving value for the sale. They have also ensured that adequate probity measures around any direct sale are considered in evaluating the terms of the sale. 

Why does classification of land matter?

Since the adoption of the Local Government Act 1993, Council is required to classify all ‘public land’ as either ‘community’ or ‘operational’. This impacts how the land is used, managed, the community’s role in its use as well as affecting ongoing maintenance costs and if it can be leased or sold.

What’s the difference between Community and Operational land?

Community land – Council owned land which should be kept for use by the general public and would ordinarily comprise land such as a public park. The use and management of community land is to be regulated by a plan of management.

Operational land – Council owned land held as a temporary asset or as an investment, land which facilitates the carrying out by a council of its functions or land which may not be open to the general public, such as a works depot or a council garage.

Community land must not be sold (except in the limited circumstances referred to in section 45(4) of the Local Government Act 1993), must not be leased or licensed for more than 21 years and may only be leased or licensed for more than five years if public notice of the proposed lease or licence is given. No such restrictions apply to operational land.

Why is Council reclassifying land now?

Land automatically becomes ‘community’ land if it is not otherwise classified within three months of being acquired by Council. There are still some parcels of land that have been incorrectly classified, or are now outdated, and need to be changed in order to put the land to better use.

Will there be other opportunities to have my say on what happens with this land?

No further consultation is required for operational land that does not require reclassification or rezoning – these parcels of land can be seen as the blue pins on the interactive map. You will have another chance to have your say on the parcels of land coded with yellow, green or purple pins.
Council is preparing to lodge a Planning Proposal to reclassify certain parcels of land from community to operational and to rezone certain lands. This land is owned Central Coast Council. 
The process for a Planning Proposal will take approximately 12-18 months to complete. 
As part of the process, Council will be required to undertake formal public consultation. For the reclassification process, Council is also required to undertake a public hearing which will be convened by an independent facilitator. The outcomes of the public hearing will be required to be reported back to Council. Ultimately, the NSW Department of Planning, Industry, and Environment will decide the outcome of any planning proposal submitted by Council. 

Community questions

Regarding 2 land parcels at 8 and 10 Bay Village Road, Bateau Bay once a new library facility is built within the Bateau Bay Square shopping centre. The land at 10 Bay Village is the site of the existing library and the other adjoining land is vacant. The conditions for the sale of these sites require that a new modern library facility is provided for the community. Does this mean the new library will be owned and operated by a private party (who built and provided the new building)? 

If the sale of 8 and 10 Bay Village Road, Bateau Bay was to proceed, one of the conditions of sale would be that a new library facility be provided for the community. 

The library would continue to be managed and operated by Central Coast Council.

My question is in regard to the loss of some community centre facilities to be replaced by what appears to be further sporting venues. Not all young people want to be involved in sport so centres for youth should not be sacrificed over sport and what community consultation has occurred over the many sites proposed.  Is there also a staged plan for each site before the firewall? 

None of the Tranche 3 properties are being replaced with sporting facilities. 

No further consultation is required for operational land that does not require reclassification or rezoning – these parcels of land can be seen as the blue pins on the interactive map. However, you will have another chance to have your say on the parcels of land coded with yellow, green or purple pins.

Council is preparing to lodge a Planning Proposal to reclassify certain parcels of land from community to operational and to rezone certain lands. This land is owned Central Coast Council. 

The process for a Planning Proposal will take approximately 12-18 months to complete. As part of the process, Council will be required to undertake formal public consultation. For the reclassification process, Council is also required to undertake a public hearing which will be convened by an independent facilitator. The outcomes of the public hearing will be required to be reported back to Council. Ultimately, the NSW Department of Planning, Industry, and Environment will decide the outcome of any planning proposal submitted by Council. 

What assets does the proposed sale of par of 336-350 Terrigal Drive include? 

The proposed sale of part of 336-350 Terrigal Drive, Terrigal is only in relation to the basketball courts. 

The properties surrounding the basketball courts have not been identified for the Tranche 3 Asset Sales Program. 

Have the implications to parking been considered for the sale of the Umina Mall Car Park? 

If the sale of the Umina Mall Car Park (11, 5, 7, 9, 11 Bullion Street Umina and 4A, 4B, 6, 8, 10 Alfred Street Umina (10 x lots in total)) was to proceed, strict sale conditions would be applied. 

The conditions of sale would ensure that there is no loss of parking and that rear lane access for West Street businesses is maintained. 

Is the Gosford City Bowling Club going to be affected by any rezoning/development due to the current financial problems or future ear marked for council development due to Councils existing financial problems? 

The decision to rezone and reclassify the bowling club land is not a consequence of Council's financial situation. 

This decision stems from the endorsed Central Coast Stadium Strategy which outlines that a Masterplan for the site be delivered by December 2021, including opportunities for future complementary uses at the Stadium and surrounding land. Changes to the bowling club's current legal tenure is not being considered.

What restrictions are imposed on how the funds can be spent from each specific sale?   For example: 

  1. Land purchased for carparking was this purchased via developer contributions and therefore bound to be used for that purpose in the future?   
  2. Similarly is that was purchased for future carparking really surplus to future needs in which case the sale would not make sense in the long term?

The proceeds of any asset sales that were originally purchased using restricted funds will be returned to restricted funds.  

An assessment of parking within town centres was carried out as part of the now adopted Central Coast Parking Strategy – this has been taken into consideration when identifying potential properties for inclusion in the asset sales program. 

Have the implications to the existing tenants of 219B, 219C, and 219 Albany Street, North Gosford (in particular the youth refuge) been considered?  

If the sale of 219B, 219c & 219 Albany Street North Gosford was to proceed, as part of the conditions of sale, the entity who develop the properties must demonstrate that the existing tenants (which includes the youth refuge) are included in any planning for the site.

Is the green space at Solstice Place on St Huberts Island on, or will be on, the list of assets Central Coast Council is selling-off?

There are no land parcels identified in the Tranche 3 Asset Sales Program on St Huberts Island.

What is the current valuation of each of the assets in the CCC balance sheet? 

Current valuations specific to each parcel of land are commercial in confidence, however the Tranche 3 properties have been identified as they are likely to attract interest and a positive financial return for Council. While it is hard to estimate a final sales price on the complete tranche at this time, Council will only be selling for market value and with that expectation it is expected to improve Council’s financial position by at least $50M.

Who will value the assets before the sale?  Who in the Council will negotiate the asset sales?  

Council has engaged with independent property development experts Michael Filo and Steve Rowe to execute the functions of the independent Property Advisory Committee.  Their function is to provide an independent panel to review the asset sales program prior to going to Council, review and advise on conditional sales for commercial and industrial sales and to review opportunities and advise Council on potential highest and best use analysis to ensure Council is receiving value for the sale. They have also ensured that adequate probity measures around any direct sale are considered in evaluating the terms of the sale.

How will the assets be sold - auction, listed sale? 

Properties are either being sold through a competitive sales and marketing campaign to ensure the best sale price or, in the case of direct sales with a proposed buyer, properties are sold for no less than the market value, which will determined by an independent valuer.

Will residents be advised as to who is purchasing the asset before the sale is completed? 

No, this information is commercial in confidence and Council is unable to disclose this information. 

Will it be a condition of the sale of the asset that the eventual purchaser has no direct, indirect association with the asset purchaser or an associate of the asset purchaser? 

Council’s Code of Conduct and Land Transaction Policy are in place to ensure that all interests are protected throughout this process. 

Are the sales of assets open to foreign investment?

Council’s sales process will adhere to all of the relevant state and federal legislation, including the Foreign Investment Review Board (FIRB).

How are the implications of any future redevelopment of any of the parcels being considered? 

Any development or redevelopment on any of the land parcels will require a development application (DA). 
A DA is a formal request for consent to execute proposed development. This could include change of use of land, subdividing land, carrying out work on a building, and landscaping amongst other things.
The approval of any DA is subject to a range of criteria including provision of parking and traffic management.  
For some of the properties, conditions of sale have been included and therefore approval would be subject to the conditions of sale being met. 

Why can't the community fix Norah Head Community Hall? The land was donated, it is disrespectful to sell something that was donated to the council when it is really the community’s property.

Sadly the community centre reached its end of use in early 2020 given the level of termite damage causing the building to be structurally unsafe and beyond repair. Prior to discontinuing the pubic use of the building, the building was vastly underused, receiving only 11% of bookings against the available hours. In our current financial situation, it is important that our resources are prioritised against community facilities which are well used and deliver the most impact to the community. 
It is important to note that should Council decide to proceed to dispose this site, Council would be required to reclassify this asset to operational land prior to any sale being made. This requires demonstration to the NSW Department of Planning, Industry and Environment that this sale would not significantly reduce open space areas within the region. During this process a public hearing is arranged where the public can have a further say on the reclassification of the land.

I have been made aware that Terrigal Bowling Club is to be sold but is not included in this list? 

The Terrigal Bowling Club is not included in the Tranche 3 Asset Sales Program. 

What evidence is Council relying on when it says that the Noraville Carpark (116 Evans Road and 49 Hammond Road, Toukley) is underutilised? 

What is meant by the term "underutilised" in this instance, is that the zoning of the land allows for a higher and better use of the land rather than just car parking alone. In this example, the land is zoned B2 (Local Centre) which could be developed for a commercial use incorporating parking.

Will the money from asset sales be used for low cost housing? 

Central Coast Council has developed a Draft Council Affordable Housing Land (CAHL) Proposal which is currently on Exhibition. 
This proposal has been drafted as a framework for identifying Council land sites for affordable housing developments.
The CAHL Proposal is a recommended action of the Central Coast Affordable and Alternative Housing Strategy (CCA&AHS) specifically linked to the direct creation of affordable housing.
For more information and to have your say, click here

What sale conditions will be imposed to protect the aged residents and homeowners on the Ettalong Lifestyle Village site? 

Council currently leases the land to Ingenia Communities, who manage and operate this site and as such Council does not have any influence in the commercial operation of the site. Council intends to provide a condition of sale that the community estate is continued by the purchaser.

Why is council not re-zoning some areas to sell to developers? 

Tranche 3 of the Asset Sales Program includes a range of sites, some of which are being considered for rezoning to allow further development.

I have been made aware that the Umina Tennis Courts is to be sold but is not included in this list? 

The Umina Tennis Courts are not included in the Tranche 3 Asset Sales Program. 

Will Ingenia Community Village be rezoned?

The Ingenia Community Village is currently zoned RE1 "Public Recreation", if the land is to be held by a private entity (and be included in the Tranche 3 Asset Sales Program),  the site needs to be rezoned. The zone would need to be determined as one which is most appropriate for the proposed use of the site in private ownership. 

What is the exact meaning of "may be sold for affordable housing projects"? What kind of projects would this include?

Central Coast Council has developed a Draft Council Affordable Housing Land (CAHL) Proposal which is currently on Exhibition. 
This proposal has been drafted as a framework for identifying Council land sites for affordable housing developments.
The CAHL Proposal is a recommended action of the Central Coast Affordable and Alternative Housing Strategy (CCA&AHS) specifically linked to the direct creation of affordable housing.
For more information and to have your say, click here.

The Tuggerah Lakes District Band Hall has been included in a map of Tranche 3 properties. Will the rezoning of the land shown in the map affect the band hall in the area close to Shore Park? 

The interactive map initially shows the complete site, due to our mapping system which identifies a lot in its entirety, without the ability to consider part areas of lots. Council is only reviewing the ownership and sale of the bowling greens to the south of the site, as indicated by the blue outline of the image listed in the marker description.

Has the Memorial Avenue Reserve at Blackwall always been classified as Operational land? 

Memorial Avenue Reserve, Blackwall has always been classified as operational land. 

Why is it necessary to sell and rezone the site upon which The Green's Bowling Club, The Entrance stands?

The land in which The Greens Bowling club is located is currently zoned RE1 "Public Recreation", if the land is to be held by a private entity (and be included in the Tranche 3 Asset Sales Program),  the site needs to be rezoned. The zone would need to be determined as one which is most appropriate for the proposed use of the site in private ownership. 

I have been made aware that the reserve on Lakeside Parade, The Entrance is to be sold but is not included in this list? 

The reserve on Lakeside Parade, The Entrances is not included in the Tranche 3 Asset Sales Program. This reserve is Crown Land and will not be included in any sales programs. 

It has been reported that the 2 bush blocks in Umina have been removed from the sales list, could you confirm if this is true?   

The two lots at 83-85 Brisbane Avenue, Umina have not been removed from the Tranche 3 Asset Sales Program. 

Are there any plans to sell the existing car park adjacent to Denning Street, Theatre Lane,  Bayview Avenue and Short Street, The Entrance?

The car park adjacent to Denning Street, The Entrance is not included in the Tranche 3 Asset Sales Program. 

Is there any plan to rezone and sell the land on Main Rd Noraville where the Girl Guides hall is located?

The Girl Guides Hall in Toukley is not included in the Tranche 3 Asset Sales Program. 

Could you please explain why 43A Ulana Ave, Halekulani (Lot 2 DP218406) is listed as being part of Tranche 2, however the same property is listed as part of tranche 3?   

This is because the Tranche 2 sites had previously been resolved to sell by the former Wyong Council, however through historical searching it has been determined that this site requires reclassification as there may be a public trust over the land. As such, a further resolution has been sought to ensure proper governance has occurred to sell this site. 

The land next to the Greens Bowling Club at The Entrance was donated to Council in the 1940s for public use, is Council allowed to sell the land even though it was donated? 

Land across the region has come into Council ownership through a variety of ways, the Local Government Act 1993 allows Council to sell land under certain circumstances. 
Council only intends on selling part of the land which is currently leased to the Mingara Club. The sports fields and band hall will be retained and kept in Council ownership. Further, the Mingara Club will be able secure ongoing tenure through purchasing the site and this will allow them to access funding to improve the facilities. 

Community consultation is an appropriate process for council to pursue and is commended, how will the feedback collected be used? 

Feedback received during the consultation period will be reviewed and a report based on this feedback along with recommendations on next steps will be reported to Council. 
To date, Council has met with many community groups to understand their concerns and to work with them on solutions to issues that have been raised. 
This consultation process has already provided many positive outcomes for Council and the community. 

Has there been or is there going to be an inquiry into how council got into this financial black hole?

Council's former Administrator, Mr Dick Person released a 30 Day Interim Report on 2 December 2020, a 3 Month Progress Report on 3 February 2021 and on 15 April his final report was released. 
On 26 April 2021 the NSW Government announced a public enquiry into Central Coast Council's financial situation. 
All of this information is available on Council's Financial Recovery Plan
 

You have specified that the sale of the car parks in Bullion Street and Alfred Street, Umina will be subject to the condition that there is no loss of parking and that rear lane access for West Street businesses is maintained.  Can you further specify that parking here will remain free of charge?

While Council has no intention of charging for parking at this location, it would be impossible to guarantee this would continue in perpetuity. This is because demand for parking would need to be regulated to ensure that parking is managed during peak tourist seasons for the whole community. 

I am concerned about the approval of multi storey developments in Ettalong and the impacts the lack of parking will have, what is Council doing to ensure the impacts are minimised? 

All developments are required to be approved pursuant to the Environmental Planning and Assessment Act 1979 and associated legislation.  

How will sufficient parking be maintained during construction on the current car park behind the shops in West Street, Umina?

Temporary parking at an alternate location would be required for the duration of any disturbance to the carpark. 

Are there any plans for the sale of Council car parks to the private sector? 

Yes, these can be reviewed in the interactive map which shows the proposed sites. 

Have the neighbouring properties of these sites been notified of the possible sale? 

Landowners are not required to notify neighbours of their intention to sell, however Council is undertaking community consultation - which makes its intention to sell properties available to everybody, including neighbouring property owners. 

How can 10 Lakeside Parade, The Entrance be on the list and map for sale, when at the same time you have answered a question and claimed it is Crown Land? 

Council has confirmed that the Crown Land that is located on the waterfront is not included for sale. The land known as 10 Lakeside Parade, The Entrance is included in the Tranche 3 Asset Sales Program as resolved by the Administrator. 

I've heard that there is a proposal to develop the Duffy playing fields where the kids play soccer, is this true?

The oval on Duffys Road, Terrigal is not included in the Tranche 3 Asset Sales Program. 

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