Dusting off the property portfolio

Tauranga City Council is looking at selling off land to pay off some of its debt.

At a confidential council meeting this week a list of the council's land holdings was combed over for surplus parcels that can be sold.

In August the council listed 280 properties as being surplus.


There are patches of land all over the city that provide no direct benefit to ratepayers and are to be sold.

The sale process is not being rushed, and once the list is finalised, will through the Ten Year Plan process for consultation before being acted upon.

'It's definitely not a fire sale that's for sure, we don't need to do that,” says Mayor Stuart Crosby.

In August the properties were sorted in A, B, and C categories with B and C being further considered for sale in two tranches.

'We did it in two groups,” says Stuart.

'Properties for sale in the first three years, 2012- 2015, and then another tranche of properties that we may consider for 2015 onwards.”

The 1000 category A properties, which include roads and reserves, are the ones that are going to be kept.

The council is considering the properties in light of the financial ramifications of their sale, their valuation, the level of community interest in any property and its saleability.

'Some pockets are very small, some are land locked, and simply would not be saleable anyway,” says Stuart.

The disposal process also has to be considered.

Some of the properties that could be considered, like Mount Maunganui's May Street Reserve, have reserve status, which will have to be legally revoked before it can be put on the market.

There are other considerations.

The city owns and manages several earthquake prone buildings in the central business district.

Under recent changes to the building code there is a requirement for the council to fix these within the next 10 years if it wants to keep them.

'It's been a good 10 years since we previously have done this,” says Stuart.

'Ten years ago we decided to sell some of the Glasgow leases and land in Greerton, so it was timely that we looked at the property portfolio again to determine what we really required and what we didn't require.

'The bigger properties with major issues will go out for public consultation in the Ten Year Plan.”

16 comments

Stu reaches for the matches....

Posted on 10-11-2011 16:10 | By the_fourth_estate

sounds like a fire sale coming up!


GUY FAWKES WAS 5 DAYS AGO?

Posted on 10-11-2011 17:58 | By WOMBLE

Sounds like a desperate attempt to clean up a bit of debt and of course dumping property onto the market currently is another nail in the coffin for the property market. I wonder if TCC will be selling that bit of land out Papamoa way that is of no benefit to anyone except the developer? This all of course is to be expected with the level of debt now with us, and of course now that the former CEO Town has left Town, the same thing happened at the last three jobs he had to. When all said and done, there was a lot of debt left hanging around to add to rates ...


Who purchased them and why ?

Posted on 10-11-2011 21:49 | By RORTSCAM

SO what TCC properties are up for grabs why were they ever purchased . Exactly how many properties including total value were purchased during TOWNS reign TCC CEO ? I will bet Mr Crosby doesn't have the balls to provide that info.


Go womble

Posted on 11-11-2011 05:35 | By jimmi

I totally agree, and who ever did the due diligence on Stephen( milked the town) Town, deserves to be sitting on the Rena, the City will always struggle to pay off the debt he has left us with, and now he is in another job earning 150k plus, sadly reminiscent of Hamiltons troubles, you have to ask, what rock do these career bueracrats crawl out from under???


Sell everything but now is not a good time

Posted on 11-11-2011 12:45 | By The Tomahawk Kid

Great idea - while you are at it sell Baycourt, Baywave, Baypark, and all the other things that are really none of your business or expertise. I am certainly no when it comes to buying and selling property, (and neither are any of our councillors) but it doesnt seem like a good time to go selling off assets in the middle of a the financial crisis that is gripping the world at present. Wouldnt it be better to sell them when they are likely to get a higher return due to a bouyant market instead of in a slump? Don't people selling their private property try to get the best possible returns for their assets? A perfect example of why council should not be in the property (or any other) business.


wow

Posted on 11-11-2011 13:06 | By tonyb1

You mean the actually want to reduce debt instead of adding to it ??? Maybe it is to help service the loan taken out to buy a seedway that was loosing money ?? no wonder it is a closed and confidential meeting just like the Baypark deal, I wonder if a certain developer who has certain people in his pocket wil benefit from the fire sale.


Dusting off the property portfolio

Posted on 12-11-2011 08:37 | By Capt_Kaveman

old Mt council offices = we still need them when the Mt wakes up and breaks from Tga May St park was gifted so is not the councils to sell i have always been against the amalgamation and is this very reason of Tga debt that it should have never happened


DA CAVEMAN

Posted on 12-11-2011 11:25 | By SCOTT NUFFIN4U

Tauranga is the cause of the debt? WOW, take a look mate at the truth. Here is a 'sample' only of what has been spent in the Mount and everyone else is saddled with the debt: Baypark $20m, TECT Arena $50m, Mt Greens $33m, Baywave $30m (annual losses $6-7m/pa adding to that) total of that lot is around $150m odd and rising at about $13m a year. Look at the mountain of debt mate from it that no one can even pay the interest on ... all the 'wants' of the Mount that everyone else has to pay for.


TO MANY PICNIC BASKETS

Posted on 12-11-2011 12:32 | By YOGI

To many heads in the trough feeding so they spend more and so borrow more.


NOT THE HALF OF IT

Posted on 12-11-2011 14:51 | By DRONE

SCOTT, good call, if the Mount wants to "go west" then let them go as long as they take all "thier" debt with them. When you break it down like that list of yours it is amazing how much money has been spent in the Mount, and what is there to show for it. Where are the tourists, the new jobs (other than for officials that don't create anything except more debt) looks to me like a clear case of feathering ones own nest that is all.


MONEY SPLURGE AT THE MOUNT

Posted on 12-11-2011 16:46 | By SCARLET PIMPINEL

The is an obvious reason for it, just take a look at who resides there: Crosby, Moultrie, Dep Dave Stewart, Curach ... need one say more, talk about keeping the punters happy by throwing money at it on a "free for all basis".


DUST OFF WHAT?

Posted on 13-11-2011 13:18 | By DRONE

It is not the property that is surplus to requirements or dusty. Some of the properties maybe surplus but why were they purchased in the first place? I do not see how dust could get near these guys I guess as they are firmly butt fixed to the chair for the single purpose of "SEAT WARMING". If anything useful was going on then someone would have long ago turned the light on there. Only way these guys get "dust" is by blowing hot air!


YOU FORGOT SOMETHING IMPORTANT

Posted on 13-11-2011 23:34 | By Crash test dummies

SCARLET, the Mount Hot Pools is reportedly blown about $4.5 million on a few plans and so on, then there is the $2+ million on the so called repairs, Tauranga City Aquatics Ltd is broke so they can not pay the bills for all of this so guess who is going to? You got it the "Tauranga" City ratepayers! So Capt Kaveman how about you crawl outta ya cave and see some daylight, cast a little light on what you 'think' you see .... then well I guess you better tell me then what do ya see! PS it is a lot different than you currently think!


TO MUCH DEBT

Posted on 14-11-2011 22:41 | By WARTS N ALL

If this lot think NZTA are going to take on Route K they must be about ready to be committed to proper TLC in a lovely place where the locks are on the outside (so as they are safe from themselves for sure). Route K has a $3 million loss in one year to June 2011, no better than before. The gap means 8,200 cars a day and every day are needed to pay $1 each just to break even, not going to happen ...


DREAM MERCHANTS

Posted on 21-11-2011 19:15 | By YOGI

Agreed, no chance of NZTA taking over the debt of $70-73m odd, whatever it is there is no show of it here. If the cars needed to break even are required to be 4x higher or pay 4x as much then that is not going to happen anytime soon for sure. The "Dusting off" factor has not hit pay dirt yet and is so a failure before starting.


Cutting away a bit of fat

Posted on 22-11-2011 02:30 | By THOMAS BROWN

Yes as some folks here have pointed out there are a couple of spare properties around, seems we managed to accumulate a bit in recent years, not shure when or why that happened. Note to self: Ask Stephen if he knows.


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