Item 9.1 - Attachment 5 |
Council Report for
acquisition for 40 Cowper Street - 23 March 2009 |
CLOSED SESSION
ITEM NUMBER 17.1
SUBJECT Strategic Asset
Management Property Acquisition Negotiation
REFERENCE F2008/03904 - D01150369
REPORT OF Property Development Advisor
This report is confidential in accordance with section 10A (2) (d) of
the Local Government act 1993 as the report contains commercial information of
a confidential nature that would, if disclosed (i) prejudice the commercial
position of the person who supplied it; or (ii) confer a commercial advantage
on a competitor of the Council; or (iii) reveal a trade secret.
PURPOSE: This report seeks the approval of Council to proceed with the
acquisition of the CONFIDENTIAL property at |
RECOMMENDATION (a) That
action be taken to acquire (b) That
the proposed future actions
identified in clauses 15 and 16 be approved. (c) Further,
that a report be presented to
Council once all the proposed future actions are completed. |
BACKGROUND
1. Council
owns a relatively large property at 48 Cowper Street, Granville with area of
2096m2 which is zoned B4 Mixed Use and is considered to have development
potential. The property the subject of this report directly adjoins Council
owned property and is situated at 40 Cowper Street, Granville.
2. Although
only 430m2 in area the property at 40 Cowper street will allow Council to have
one contiguous site of 2526m2 and a combined frontage to Cowper Street of 46m,
which will add value to Councils existing site and enable a more cost efficient
development of the Council holdings.
3. The
property at 40 Cowper Street, Granville is located on the south east corner of
Rowell Street and directly adjoins the Council owned car park at 48 Cowper
Street. The subject property and the car park are zoned Mixed Use 10 in the
current LEP 2001 and proposed to be zoned B4 in the Draft LEP 2008 with the
consequent increase in permissible height to 52m and Floor Space Ratio of 6:1.
This gives a potential developable floor space of 15,156m2 or a possible 140
units.
4. The
property has been proposed for acquisition for a number of years and together
with the car park was recommended for a Central Square in the Hawkins Report of
2006.
5. The
property has been the subject of a local heritage listing for some time. The
NSW Government Architects Office was commissioned to conduct a heritage
assessment and the report of Mary Knaggs is attached. The report states that “one of the main reasons to consider removal
of this cottage is that is does not have a sympathetic setting because its
surroundings are now largely higher density business uses and the carpark use.”
The report concludes that if the building is to be demolished that it be
advertised to assess the community esteem for the property, that the property
be recorded and that a brief archaeological assessment to consider building
elements of concealed artefacts is conducted. A part of the conclusion follows;
“This cottage at
a. The house has
been vacant for some time, is in a neglected and vandalised state;
b. The setting of the house and garden, surrounded by higher density
business use zoning and carparks, has been compromised;
c. The zoning allows commercial uses over several floors, further
new commercial development and/or a commuter carpark is likely on adjacent
land;
d. Were the cottage to remain in private ownership it is likely
that it would be further neglected, or that there would be pressure to alter it
further to accommodated commercial uses;
e. Commercial uses are also likely to result in loss of the garden
setting as part of the allotment area may be required for extensions and
parking ( however a full range of possible uses has not been explored- for
example a child care centre may be a good fit; and
f. There are other similar period timber cottages throughout the
Parramatta LGA, many in better condition and some in setting which better
enhance their heritage values.
6. The report has been reviewed by the Council Heritage Advisor,
Mr Zoran Popovic and the conclusions and recommendations have been accepted by
him.
7. In
the medium term the property will contribute a further 24 car spaces when
consolidated with the existing carpark. Given the imminent loss of up to 90
spaces where the new Police Station will be located in Carlton Street these
spaces will be badly needed.
8. The
longer term future for the site will be more likely to be a missed use
development based on the B4 zoning that is proposed. This zoning will allow for
15 level building when finally gazetted in the next 12 months of so.
9. Negotiations
have been ongoing for some time and the initial expectations of the owners were
unrealistic at $750,000. However over time they have become more realistic and
interested in a sale. As a result a valuation was commissioned in August 2008
by Cushman and Wakefield Valuers and they valued the property on a stand alone
basis with the Heritage listing in place at $385,000. The valuation also
attributed as special value of $100,000 on top due to the potential for
consolidation with the existing Council owned land and the ability to lift the
Heritage listing. This gave a final value of $485,000 for the property. The
valuation did not contemplate a value based on the potential of a multi unit
development incorporating the Council carpark.
10. In
February 2009 the owners finally agreed to the sale proceeding at the valuation
figure of $485,000 subject to council approval.
ISSUES/OPTIONS/CONSEQUENCES
11. There are
funds available in the Property Development Reserve Fund to complete the
purchase.
12. If
acquired the Council land will enjoy greater potential to develop a mixed use
development and provide housing options for the local community. The asset base
of Council will appreciate in value as a result.
13. Council
has the opportunity to purchase at a time when property values have fallen.
Once property values begin to rise again owners are more reluctant to sell or
demand unrealistic prices.
14. The
Heritage Report confirms that the Heritage listing should be lifted and Council
should begin this process once the acquisition is complete.
PROPOSED FUTURE ACTIONS
15. The Strategic Asset Management Unit undertake the necessary
actions to exchange contracts with the owner subject to settlement terms after
June 30 2009.
16. The Heritage Architect completes a final report which confirms
that the Heritage listing be lifted and the strategic Asset Management Unit
complete the process to lift the Heritage listing.
CONSULTATION & TIMING
17. Consultation has taken place with Council’s Land Use and
Transport Planning Unit.
18. Further consultation has also taken place with external
consultants and some of their recommendations are contained in the attachments.
CONCLUSION
19. There are
strong future financial benefits to Council to adopt all the proposed
recommendations.
20. Council
will be able to make further decisions on whether to sell or to develop the
site when further feasibilities are completed.
Graeme Bleus
Property Development Advisor
Strategic Asset Management
Council
Report for acquisition for 40 Cowper Street - 23 March 2009 |
Attachments:
Emailing: Planning |
1 Page |
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Emailing:
40CowperSt_HeritageReport_011208.pdf: 40CowperSt_HeritageReport_011208 |
31 Pages |
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Emailing: |
2 Pages |
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REFERENCE MATERIAL