Asset Sales Program – Tranche 3
This project is open for consultation.

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. 

How can I get involved? 

You are invited to:

Got a question? 

Feedback will be accepted until 5pm on Friday 28 May 2021

Council will receive a further report in consideration of all feedback 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.
 

Timeline

1
Consultation open
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Who's listening

Who's listening
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. 

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. 

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