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North Melbourne Recreation Reserve Funding Update

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North Melbourne Recreation Reserve Funding Update FINANCE, CORPORATE SERVICES AND Agenda item 5.7 GOVERNANCE COMMITTEE REPORT COVER SHEET 9 September 2003 NORTH MELBOURNE RECREATION RESERVE FUNDING UPDATE Division City Assets & Services Presenter Vince Haining, Group Manager Parks and Recreation Purpose The purpose of this report is to: • provide to Council a funding options plan for the proposed redevelopment at North Melbourne Recreation Reserve (“Land”); • seek agreement to the final design proposal following further consultation; and • recommend to Council that it agree to the surrender of the current lease granted to the North Melbourne Football Social Club Ltd over the Land and enter into a new lease with the North Melbourne Football Club Ltd for the Land subject to the necessary statutory processes. Finance The total cost of the proposed option for consideration is $4.95 million which includes provision of $0.25 million for landscaping around the site. It is proposed that this will be funded by the Council Works Program over 3 years. $0.5 million has been allocated from the Council Works budget for 2003/04. The contract for the works will require a further report to the Finance Corporate Services and Governance Committee as the capital funds to complete the project will require a budget pre-commitment over a 2- year period. Legal Council is Committee of Management of the Land pursuant to the North Melbourne Lands Act 1966 (“NML Act”). Pursuant to section 6 of the NML Act, the Council in its capacity as Committee of Management of the Land, is entitled to grant a lease of the whole or part of the Land for defined purposes including sport and recreation. In the case of the current Lease of the Land, the NML Act does not restrict the power of the Council to agree to its surrender. As the new lease will exceed 3 years, pursuant to section 6(2) of the NML Act, such new lease will require the approval of the Governor in Council. As the new lease will also exceed 10 years, section 190(3)(b) of the Local Government Act 1989 (“LGA”) requires public notice of the proposed lease and a public submission process in accordance with section 223 of the LGA. Sustainability Council has resolved to maintain the grandstand on the Land. Agreement to this proposal would restore a facility of local significance, enhance the amenity, improve the facilities available and return some areas to parkland. Connected and Accessible City City Plan 2010 Strategic Direction 1.7 commits Council to: “Recognise and protect the significant heritage features and biodiversity of the City’s parks,” and “Manage all City parkland to provide a mix of active and passive recreation facilities.” Innovative and Vital Business City. There is no significant sustainability impact. Inclusive and Engaging City. Strategic Direction 3.5, commits Council to: “Protect, value and respect the cultural, natural heritage and built form of the City and its diverse neighbourhood,” and “Provide and maintain a variety of quality parklands and informal public spaces to meet the passive and active recreational needs of the community.” Environmentally Responsible City. There is no significant sustainability impact. City Plan 2010 further identifies the issues relating to the reserve redevelopments in its local areas including: “Protect and enhance the urban character and heritage features of North and West Melbourne; and Support the local residential community through the retention and maintenance of North Melbourne residential character and amenity.” Recommendation That the Finance, Corporate Services and Governance Committee recommend that Council: • agree to the North Melbourne Recreation Reserve ("Land") being redeveloped in accordance with Option 2 being the option set out in clause 7.2 of this Report; • agree to the surrender of the current lease over the Land dated 21 December 1993 granted to the North Melbourne Football Social Club Ltd and other existing rights over the Land; • subject to the processes specified in sections 190(4) and 223 of the Local Government Act 1989 (“the Act”), pursuant to section 6 of the North Melbourne Lands Act 1966 (“NML Act”) resolve to grant a lease of the Land to the North Melbourne Football Club Ltd (“NMFC”), subject to the provisions of the NML Act, including the approval of the new lease by the Governor in Council, and on the following terms and conditions: ½ a term of 15 years with a commencing rental of $136,000.00 per annum plus GST; ½ the NMFC will be responsible for the payment of all rates, taxes, charges, levies and GST during the term of the new lease and any additional taxes or charges that may be introduced during the term; ½ the NMFC will be required to provide ongoing maintenance of the oval and to maintain the turf table and outfield to a standard suitable for district level cricket; ½ the NMFC will be required to allow community access and use of facilities by way of an auditable bookings system with use to be reported annually to Council and actively managed to ensure ongoing availability; ½ the NMFC will be required to play at least one third of its games in Melbourne for the duration of the term of the new lease; ½ such other terms and conditions as may be required by the Manager Governance Services including but not limited to the method of rental increase, if any, during the term of the new lease; • that in accordance with sections 190(3)(b) and 223 of the Act give notice of Council’s intention to grant the proposed lease by public notice in The Age newspaper; • that in accordance with Sections 223 and 86 of the Act to appoint a committee to be known as the North Melbourne Recreation Reserve Committee consisting of the Group Manager Parks and Recreation, Manager Facilities Management and the Manager Governance Services, or the persons from time to time acting in those positions, and by instrument of delegation sealed by the Council to delegate to that Committee its powers, duties and functions to hear any submissions in relation to the proposed lease at a meeting to be held on Friday 14 November 2003, commencing at 3.00pm at the Melbourne Town Hall Administration Building, and to report, with recommendations, to the Council; • that pursuant to Section 223(3) of the Act to authorise the Manager Governance Services to carry out administrative procedures necessary to enable the Council to carry out its functions under that section; and • by instrument of delegation sealed by the Council pursuant to Section 98(1) of the Act to delegate to the Chief Executive Officer, or the person from time to time acting in that position, its powers, duties and functions: ½ to negotiate and agree final terms and conditions of the proposed redevelopment detailed in paragraph 7.2 of this Report and in Attachment 1 - Option 2 attached to this Report; ½ to negotiate and agree the final terms of the surrender of the current lease granted to the North Melbourne Football Social Club Ltd and any other existing rights over the Land (if any); and ½ if no submissions are received in accordance with Section 223(1)(b) of the Act, to negotiate and agree the final terms of the new lease to the NMFC, ½ to affix the Common Seal of the Council to the surrender of lease, new lease and sign such other documents and take such other actions as are required to give effect to the agreed redevelopment and the matters the subject of this resolution; ½ to do all things ancillary and incidental to the above; and • pursuant to section 98 (3) of the Local Government Act 1989 authorise the instrument of delegation referred to above, to empower the Chief Executive Officer or the person from time to time acting in that position, to delegate such power, duty or function of the Council delegated to him to a member of the Council staff. FINANCE, CORPORATE SERVICES AND Agenda item 5.7 GOVERNANCE COMMITTEE REPORT 9 September 2003 NORTH MELBOURNE RECREATION RESERVE FUNDING UPDATE Division City Assets & Services Presenter Vince Haining, Group Manager Parks and Recreation Purpose 1. The purpose of this report is to: 1.1 provide to Council a funding options plan for the proposed redevelopment at North Melbourne Recreation Reserve; 1.2 seek agreement to the final design proposal following further consultation; and 1.3 recommend to Council that it agree to the surrender of the current lease granted to the North Melbourne Football Social Club Ltd over the Land and enter into a new lease with the North Melbourne Football Club Ltd for the Land. Background 2. Council is Committee of Management under the North Melbourne Lands Act 1966 (“NML Act”) for the land referred to as the North Melbourne Recreation Reserve (Arden St) (“Land”). Pursuant to the NML Act, in 1992 Council entered into Lease and Licence arrangements with the North Melbourne Football Social Club ("the Social Club") for the use of the premises (part of Grandstand), the Social Club Rooms and the Oval areas of the Land. 3. The lease, in part, provides for the Social Club to allow use of the playing area and facilities for the purposes of Cricket and Football. The lease also requires the Social Club to establish a reserve management committee comprising two representatives each from the Social Club, Football Club and Cricket Club. 4. In December 2002 the ECCD Committee resolved that a further report be presented to the Finance, Corporate Services and Governance Committee. The ECCD Committee resolved to; • “note the options under consideration; • endorse the development of a Funding Option Plan for presentation to the February 2003 cycle; and • request that initial consultation be undertaken with relevant community and other stakeholder groups of the options contained within the Report and that the outcomes from those consultations be reported in the February report.” 5.
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