Extraordinary Meeting of Council

Open Agenda

 

Meeting Date:

Wednesday 22 November 2017

Time:

3pm

Venue:

East Coast Lab
Aquarium,

Marine Parade, Napier

 

 

Council Members

The Mayor (In the Chair), Councillors Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, Taylor, White, Wise and Wright

Officer Responsible

Chief Executive, Wayne Jack

Administrator

Governance Team

 

Next Council Meeting

Wednesday 20 December 2017

 

 

Extraordinary Meeting of Council - 22 November 2017 - Open Agenda

ORDER OF BUSINESS

Apologies

Nil

Conflicts of interest

Public forum

Announcements by the Mayor

Announcements by the management

Local Government Act 2002

The Council resolves, in terms of Section 82 (3) of the Local Government Act 2002, that the principles set out in that section have been observed in such manner that the Napier City Council consider, in its discretion, is appropriate to make decisions on the recommendations set out in this agenda (including the Public Excluded section).

 

Hearing of submissions 

3.05pm                 Susan Wylie, Friends of the Library

3.15pm                 Quest Napier

3.25pm                 Mark Rodgers

3.35pm                 Judith Mills

3.45pm                 Neil Barber (or other Art Deco Masonic Hotel representative)

3.55pm                 Guy Natusch

 

 

New reports

1      Civic Building Site Optimisation....................................................................................... 2   

 

Deliberations

 

Public excluded ........................................................................................................... 108

 

Extraordinary Meeting of Council – 22 November 2017– Open Agenda

New Reports

 

1.     Civic Building Site Optimisation

Type of Report:

Operational and Procedural

Legal Reference:

Local Government Act 2002

Document ID:

399789

Reporting Officer/s & Unit:

Fleur Lincoln, Strategic Planning Lead

 

1.1   Purpose of Report

The report provides an analysis of submissions received on the Statement of Proposal that will enable Council to divest, whether by way of sale or long-term lease, the site on which the Civic Administration Building is currently located (Site A) to a private developer for commercial development, should it wish to do so. The report also outlines the recommendation to Council on the proposal put forward by the Statement of Proposal, taking into account the views expressed in these submissions.

 

 

 

Officer’s Recommendation

a.     That Council receive and hear the submissions on the Civic Administration Site Optimisation Statement of Proposal.

b.     That based solely on the written submissions and other feedback received to date (13/11/2017), officers recommend the adoption of the Civic Administration Site Optimisation Statement of Proposal as notified.

 

 

MAYOR’S/CHAIRPERSON’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

 

1.2   Background Summary

In June 2017, Council received the results of a detailed seismic assessment of the Civic Administration Building and the Library Building. This assessment showed that the Civic Administration Building achieved a building seismic rating of 10% new building standard (NBS) and the Library Building 15% NBS, making both buildings earthquake-prone.

 

Soon after, Council began the process of searching for alternative temporary accommodation for Council offices and the Napier Library, and carrying out investigative work on options for the strengthening and/or rebuilding of buildings that would house the Council offices, and potentially the Library on a permanent basis. Spatial analysis showed that the Council offices, Council Chambers, customer services, and a new Library could be accommodated within approximately half of the current site (the half occupied by the Library Building).

 

The site on which the Civic Administration Building is currently located could potentially be divested for commercial development, which would avoid the costs of strengthening and refurbishing both buildings, and enable Council staff to be accommodated within the one extended building. Additional benefits would include amenity and urban design improvements to the site and streetscape, and potential economic spinoff from any commercial development and activity locating on Site A.

 

A Statement of Proposal was prepared under section 83 of the Local Government Act 2002 that presented the following proposal:

 

 

Napier City Council will have the option to divest, either by long-term lease or sale, the site on which the Civic Administration Building is currently located (Site A) to a private developer for commercial development.

 

 

The Statement of Proposal was notified on the 4th October 2017. Submissions closed at midday on the 3rd of November 2017. A Summary of Submissions is attached as Attachment A, with copies of the full submissions provided as Attachment F to this report.

1.3   Submissions Analysis

A total of 50 submissions were received by the 3rd November 2017. 28 submissions were in support of the proposal, 19 were opposed to the proposal, and 3 expressed a neutral stance or did not indicate a preference. A summary of submissions is provided in Attachment A.

 

Reasons stated for supporting the proposal included:

·    Leasing the site for commercial use would ensure there is a regular income being earnt by Council, and therefore the community.

·    The proposal is an efficient use of ratepayer money.

·    The usual District Plan controls and consent process will ensure any new build is appropriate.

·    The redevelopment would allow Council officers to be accommodated within modern workspaces, with a fit for purpose council Chamber.

·    The south edge of Napier is under-utilised and this development would enliven this part of the CBD.

·    The proposal would enable Council to reinvest resources into core services.

·    The redevelopment of Hastings Street south is very progressive.

·    Staff will be able to be accommodated within the one building.

·    An international-brand hotel on this site would bring tour companies to Napier, would provide employment, and increase spending in the CBD.

·    A 4 to 4+ star hotel combined with retail businesses would bring vibrancy to this part of town.

·    An international brand hotel may introduce new business and raise the profile of Napier as a destination.

·    A hotel on the site would relieve the accommodation shortage in the city.

·    A new standalone library could be sited elsewhere, which could include redevelopment of surrounds, improved provision for other activities, and better access to parking, and would increase vibrancy to another part of the city.

 

  Reasons stated for opposing the proposal include:

·    The concern that Council will sell off the site for commercial use before knowing where the new library will be located.

·    Insufficient information available by which to make a decision on the future of the sites.

·    Site A should be retained in Council, and therefore public, ownership.

·    There is limited control over the design for any new building.

·    Site A is elevated and on a prominent site, and should be reserved for civic purposes, and potentially a safe point during a tsunami.

·    The Civic Administration Building be strengthened and retained.

·    The loss of the open space outside the front of the Library.

·    The need for sites containing Civic functions to be generous with regards to landscaping, forecourts, and parking, and that consolidating Council onto half the site would likely impact on these needs.

·    The need for second and third opinions on the seismic issues with the buildings, and ability to strengthen these buildings before making a final decision.

·    The desire to retain a full Napier library facility and service, at its current location.

·    Concern that Council is looking at alternative sites for the library, or that it will remain in its temporary location permanently.

·    The opportunity to expand the Library onto Site A to realise the potential of the Library to be a community hub.

 

Other concerns raised by submitters who agreed with the proposal or expressed a neutral stance included:

·    A preference to long-term lease of the site as opposed to outright sale.

·    No reason to locate the City Council within the CBD.

·    Concern that Council has lost sight of its core functions and is more interested in catering to tourists needs.

·    Concern about the future design of any new building to ensure it is attractive and appropriate to its context (no more than 3 storeys high).

·    Due diligence is important to avoid ad hoc or short-term decisions being made

·    Opposition to the use of Clive and Memorial Squares for the siting of any future library.

·    A reduction in the size and services of the library permanently.

·    Concern about using the MTG for a library and the commitment of the NCC to arts.

·    A need to ensure there is adequate parking for library users.

·    The new library must stay on its present site.

·    Shuttle of bus services must be provided to patrons wishing to use the library in its temporary home.

 

A number of the concerns and/or comments raised above are in relation to decisions related but not directly associated with the decision being sought by this Statement of Proposal. The feedback received will however, contribute to the future stages of this project.

 

Other Engagement

 

A public meeting was held on the 10th October 2017, and attended by approximately 75 people (not including Councillors or staff). Due to the meeting being early in the engagement process, the audience were predominantly asking questions with a focus on the Library. Feedback received was mixed, with both positive and negative comments received. A copy of the meeting notes are provided in Attachment C.

 

A further meeting was held on the 1st November 2017 to an audience of 26 invited business owners. Again, a number of questions were raised, however feedback received was generally positive. A copy of the meeting notes are provided in Attachment D.

 

James Rowe, Economic Development Manager carried out several interviews with 30 key business, iwi and community leaders as part of Napier City Council’s Napier-specific Economic Development Strategy. Each was specifically asked about their thoughts on the proposal, with all respondents recognising the benefits of an internationally-branded hotel on the site. All but one supported the proposal. A copy of James Rowe’s memo summarising this feedback is attached as Attachment E.

 

Officer’s Response to Matters Raised

 

These are attached as Attachment B.

1.4   Significance and Consultation

The Civic Administration and Library Buildings are identified in Council’s Significance Policy as Strategic Assets. The land on which they are sited is not. Napier City council’s Significance and Engagement Policy identifies a set of criteria for determining whether a matter, issues, decision or proposal has ‘significance’. The involvement of a strategic asset is one such criteria, and Council therefore deemed it appropriate to consult with the public using the special consultative procedure under section 83 of the Local Government Act 2002.

1.5   Options

The options available to Council are as follows:

1.   Adopt the proposal put forward in the Statement of Proposal - Napier City Council will have the option to divest, either by long-term lease or sale, the site on which the Civic Administration Building is currently located (Site A) to a private developer for commercial development.

2.   Reject the proposal put forward in the Statement of Proposal.

1.6   Development of Preferred Option

 

Specialist expertise sought for the Civic Building Optimisation Business Case have shown that Council administrative functions, including the Library could fit within a redeveloped Site B that includes the existing Library Building; that divestment of Site A for commercial use would provide economic benefits to the city; and that an international-brand 4 to 4.5 star hotel on this site would be a viable option. Additionally, the urban design/city vibrancy benefits for consolidating civic functions on Site B and releasing Site A for commercial redevelopment could be significant.

 

Adopting this proposal enables Council the option to divest this site, it doesn’t require that the site be divested. This gives the council the flexibility to optimise the site in terms of being able to fully accommodate civic and library council functions while enabling a commercial investment to locate on the Eastern part of the site. The final form of any commercial activity is a future decision to be made in response to negotiations between Council and potential commercial operators. Adopting this proposal also does not make a decision on whether divestment would take the form of a long-term lease or sale. Council are working on detailed options and costings, with any future decisions being subject to further financial analysis.

 

Overall the majority of submissions and informal feedback received on the proposal were in support. Although a variety of concerns were raised most can either be mitigated or addressed through appropriate design, or are to be addressed at a future stage of this project (i.e. the final form of the civic building and library). What is more, none of the concerns point to an alternative scenario that better optimises the Civic Buildings and library site. 

 

 

 

1.7   Attachments

a     Summary of Submissions.pdf ⇩

b     Officers reponse to matters raised.pdf ⇩

c     Public meeting notes.pdf ⇩

d     Business meeting notes.pdf ⇩

e     NEDS interview responses.pdf ⇩

f     Submissions Received.pdf ⇩   

Extraordinary Meeting of Council - 22 November 2017 - Attachments

 

Item 1

Attachments a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary Meeting of Council - 22 November 2017 - Attachments

 

Item 1

Attachments b

 

 

 

 

Extraordinary Meeting of Council - 22 November 2017 - Attachments

 

Item 1

Attachments c

 

 

Extraordinary Meeting of Council - 22 November 2017 - Attachments

 

Item 1

Attachments d

 

 

 

Extraordinary Meeting of Council - 22 November 2017 - Attachments

 

Item 1

Attachments e

 

 

Extraordinary Meeting of Council - 22 November 2017 - Attachments

 

Item 1

Attachments f

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

Extraordinary Meeting of Council - 22 November 2017 - Open Agenda

PUBLIC EXCLUDED ITEMS

 

That the public be excluded from the following parts of the proceedings of this meeting, namely:

 

Agenda Items

1.         Project Trifecta

 

The general subject of each matter to be considered while the public was excluded, the reasons for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution were as follows:

General subject of each matter to be considered.

Reason for passing this resolution in relation to each matter.

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary to:

Ground(s) under section 48(1) to the passing of this resolution.

48(1)(a) That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:

Agenda Items

1.  Project Trifecta

7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities

7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7  (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.