4.3 LLOYD STREET ROAD WIDENING EX LOT 33 (MCDONALDS RESTAURANT) CNR GREAT EASTERN , MIDLAND

(Midland) (Operations)

KEY ISSUES

• Land acquisitions needed to accommodate the upgrading of Lloyd Street between and Great Eastern Highway, Midland have yet to be completed; however, works have been able to commence from Morrison Road stopping short of the Great Eastern Highway pending the settlement of the acquisition of land required from the subject lot.

• Although the City requires a section of the subject lot to accommodate the current Lloyd Street works additional land (ultimate land) will be required to accommodate the extension of Lloyd Street south to meet with the Great Eastern Highway Bypass which the owner has requested be resolved at the same time.

• As the ultimate land requirement needed to accommodate the extension of Lloyd Street is some time off and the City has neither the available funds at this time or details of future Lloyd Street land requirements the Department for Planning & Infrastructure (DPI) was requested to assist with the acquisition of the ultimate land requirement which incorporates the City's current road widening need.

• The ultimate land area required from this lot to accommodate the extension of Lloyd Street will possibly impact upon the existing building and its current use, consequently compensation will also need to take into account the cost of any works necessary to the existing building and landscaping to allow the current use to continue unaffected.

• A recent meeting between City staff, McDonalds, DPI and Main Roads resolved that certain actions be implemented to assist the DPI in commencing negotiations to acquire the ultimate road widening and to settle the costs of the land acquisition inclusive of any costs necessary to modify the existing building and landscaping to facilitate both the City's current road works and the future extension of Lloyd Street.

• At the meeting it was agreed that the DPI would initiate negotiations to acquire the land; however, the DPI advised that it only had sufficient funding to meet the cost of the land component and that settlement of any costs toward modification of the McDonalds building and landscaping would have to occur at the time of the extension of Lloyd Street. Such modifications would be the responsibility of the landowner.

• It was considered in the best interests of all parties that settlement of the outright compensation determined by a commercial valuer be settled upfront rather than later and it was agreed that the consider meeting the early payment of the costs involved in the modifications required to the McDonalds building and landscaping subject to the City receiving a

Page 1 commitment from the State Government to provide it with funding for the extension of Lloyd Street.

It is recommended that Council agree in principle to meet early payment of costs for modifications required to McDonalds existing building and landscaping to facilitate acquisition of the ultimate Lloyd Street land requirements from lot 33 corner of Lloyd Street and Great Eastern Highway, Midland subject to such compensation being justified and agreed to by all parties and Council receiving a commitment from the State Government for funding of the extension of Lloyd Street to the Great Eastern Highway Bypass.

BACKGROUND

Negotiations to acquire land for the widening of Lloyd Street between Morrison Road and Great Eastern Highway have been ongoing for sometime now and although the road works have commenced the final section of the road works involving its intersection with Great Eastern Highway has been delayed pending agreement with the owner of the McDonalds Restaurant site concerning the amount of land required for the City's current road works and the DPI's land requirements for the future extension of Lloyd Street south to the Great Eastern Highway Bypass.

The landowner, although willing to accommodate the City, being aware of additional land requirements for the extension of Lloyd Street sought to have the DPI's additional land requirement included with the City's current negotiations.

As the extension of Lloyd Street is still in its preliminary stages the DPI and Main Roads have been working in conjunction with the City to determine the amount of land needed for the future road works. In the process, Main Roads WA have also identified an area of the Great Eastern Highway Reservation immediately adjacent to McDonalds lot that can be offered as a part land exchange for the land required from McDonalds lot. This proposal has been accepted in principle by the landowners and will marginally reduce the cash payment of compensation.

REPORT

At a recent meeting between City staff, McDonalds, DPI and Main Roads it was agreed that certain actions would be implemented so that the DPI could commence negotiations to acquire the ultimate land requirements from the McDonalds property at the corner of Lloyd Street and Great Eastern Highway needed to satisfy both the City's current road works and the DPI's proposed extension of Lloyd Street to the Great Eastern Highway Bypass including the determining compensation for both land requirements and any necessary modifications to the existing building and landscaping to satisfy the future Lloyd Street extension.

A plan showing the ultimate road widening requirements and the surplus portion of the Great Eastern Highway Reservation that has been offered as part exchange toward compensation is attached with this report.

Page 2 ATTACHMENTS

Land requirement plan

STRATEGIC IMPLICATIONS

The acquisition of future land road widening for the extension of Lloyd Street to the Great Eastern Highway Bypass will resolve both the City's current Lloyd Street road works and hopefully its future extension and any impact upon the McDonalds site.

STATUTORY ENVIRONMENT

Nil

FINANCIAL IMPLICATIONS

The funding of modifications to McDonalds building and landscaping to facilitate the extension of Lloyd Street is proposed to be met by the City subject to funding being granted by the State Government.

RECOMMENDATION

That the Council resolve to:

1) Agree in principle to meet the early payment of costs necessary for the modification of McDonalds existing building and landscaping situated on the south western corner of Lloyd Street and Great Eastern Highway, Midland required to accommodate the future extension of Lloyd street subject to:

a. such payment being justified by a commercial valuer and agreed to by all parties; and

b. Council receiving a commitment from the State Government that it will provide the City with funding for the extension of Lloyd Street to the Great Eastern Highway Bypass.

CARRIED

Page 3