Proposed Wastewater Scheme - Option CI Recommended by Sewerage Liaison Subcommittee -1990 (After Public Consultation] Adopted by Tauranga District Council -1991 Consented -1993 Chapel Street Wastewater Treatment Plant Treatment Plant APPENDIX 4 VALUATIONS Valpart Holdings Limited M ddleton Level 2, Westpac Building, 2 Devonport Road, PO Box 455, Tauranga, 3140 Va uation T: (07) 578 4675 | F: (07) 577 9606 M E: i/[email protected] I www.middleton.co.n2 81 Jellicoe Slreet, 14 March 2011 PO Box 397, TePuke, 3153 T: (07) 573 8220 | F: (07) 573 5617 The Utilities Planner Tauranga City Council Private Bag 12022 TAURANGA Attention: Lee Jordan Dear Lee SmartGrowth Long Term Settlement Plan Further to your letter of instruction of 4* February 2011. You have requested a comparison of net incomes per hectare for: Kiwifruit orchards Drystock land Dairy land And also the land use possibilities of the "gully" land lying between Oropi Road and Ohauiti Road in the event that the easier contoured land is used for residential development. We have inspected the land, although access to the whole of the gully areas required access through private land which we did not obtain. Aerial photography has therefore assisted in determining land cover and contour. Our report is as follows: Net Incomes 1. Kiwifruit As you will be aware, there are two main kiwifruit varieties, these being the Hayward (green) variety and the Hort 16A (gold) variety. In November 2010, a disease known as Pseudomonas syringae actinidiae (or commonly known by the acronym Psa), was discovered In an orchard in Te Puke. It is a virulent disease know as Psa-V (which is a virulent strain) and Psa-LV which is a less virulent strain. The Psa-V in particular causes die back of vines and while this strain has not reached Tauranga or Katikati, its probably just a matter of time. Most of the "damage" done to date has been to the gold variety which has exhibited secondary symptoms of the disease. Our assessment of the net incomes is on the assumption that the orchards are unaffected by the disease. For the purposes of this assessment, we have adopted Industry average production and costs and applied those to an orchard of 4 canopy hectares. REGISTERED VALUERS & PROPERTY ADVISORS VALGROUP Directors: John L. Midaieton fNZ:v.SAgSc,fFiNZ,MWIAS Alastjir H Pratt i-N/tv FPINZ PROPERTY ADVICE NATIONWIPE Paul D Migson Bromm(VPMI,AN2I>'.M.P.NZ Mark P^isey seS(VPv.i,AN2iv.MPiw M . 1 XA.f JtLLMihXt.i-ilB!»rULL-ii Orchard Gate Return Industry Average Production 7659 trays 4 canopy ha's 30636 trays Orchard Gate Return $ 4.33 per tray Orchard Gate Return/ ha $ 33,163 per ha Direct Orchard Costs $ 18,700 per ha Net Return (before Interest & taxi $ 14,463 per ha Hort 16A fGoldl Variety I Orchard Gate Return Industry Average Production 9427 trays 4 canopy ha's 37708 trays Orchard Gate Return $ 8.74 per tray Orchard Gate Return/ ha $ 82,392 per ha Direct Orchard Costs 29,900 per ha Net Return (before Interest & taxi 52,492 per ha 2. Drystock Farming This is an estimate of the returns for sheep and beef farming. Returns for sheep and beef meat have improved substantially over the past 12 months and with the NZ dollar falling, returns could improve further. We have obtained the following details assuming a 135 hectare farm carrying capacity of 2,000 Stock Unit farm at say 15 Stock Units per hectare. Qrpps RetMrn Gross Income $ 100 perSU 2000 Stock Units $ 200,000 Qn Farm posts Annual Operating Costs $ 60 perSU 2000 Stock Units $ 120,000 Net Return (before Interest & taxi $ 80,000 Net Return per SU $ 40 Net Return Per lia 15 SU's/ha $ 600 per ha 3. Dairy Farmina This is an estimate of the returns for conventional dairy farming. Milk solid returns have improved substantially over the past 12 months and with the NZ dollar falling, returns could improve further. We have obtained the following details assuming a 120 hectare dairy farm carrying a herd of 330 milking cows. Middleton Valuation www.middleton.co.nz Page 2 of 5 M Gross Return Gross Income $ 7.90 per kg milk solids Production per cow 303 kg's/ cow No. milking cows/ ha 2.75 Production per ha 833 kg's milk solids Gross Income/ ha $ 6,583 On Farm Costs Annual Operating Costs $ 4.00 per kg milk solids Production per hectare $ 833 kg's milk solids Costs per hectare $ 3,333 Net Return (before Interest & taxi $ 3,250 per ha Possible MntI M^e? fpr gWllV land The gully land is a mix of regenerating native bush and scrub, gorse, barberry and pasture. These gullies are not suitable for residential development and the land does not fall within the Councils Reserve Policy for acquisition as reserve. The land will therefore be surplus to requirements. The concern therefore is how best to deal with the land particularly when it will lie either adjacent to or near residential development. Maintenance costs of the land will also need to be kept to a minimum. We have identified the following options for Land Uses: 1. Forestry As discussed, the utilisation of the land for forestry will not only present a fire risk to a surrounding residential development but it will also be difficult to extract logs at the time of harvesting particularly within a residential environment. Forestry in our opinion therefore, is not an option. 2. Regeneration of Bush A significant portion of the gully land is reverting to native bush and it is our view that this be encouraged in those areas. If not already done so, these areas will require fencing off in order to promote the regeneration. We note that a significant area of regenerating bush adjacent to the Kirikiri stream has already been protected from future development. 3. Residential Development We believe with some retaining walls, some of the land on the fringes of the gullies could be "filled" and used for residential development however this would incorporate only a relatively minor area when comparing with the total gully area. 4. Rural Residential Development Within the area identified for future residential use, there may also be a possibility of creating clusters of rural residential/ lifestyle subdivisions adjacent to the gullies whereby some of the more moderate contoured gully land could be incorporated within say 1 to 2 hectare rural lifestyle blocks. Having these rural residential/ lifestyle blocks in clusters Middleton Valuation www.middleton.co.nz Page 3 of 5 M near the gullies will effectively result in a more open, rural environment and therefore alleviate some of the problems associated with stock grazing near the more intensively developed residential subdivisions. 5. Stock Grazing While this could be viewed as an option particulariy on some of the easier hills which are presently in pasture, one has to consider the implications and practicality of stock grazing near residential development. These will include: The affect of domestic animals and in particular dogs, on the safety of livestock The smells associated with the grazing of livestock The noises associated with the grazing of livestock Stock grazing within or near a proposed residential environment is not in our view, a practical option. 6. Planting of Manuka Manuka honey is a high grade, sought after honey type and we believe the land which is currently either in scrub or pasture could be planted in Manuka trees primarily for the production of honey. We understand apiarists are prepared to lease areas of Manuka for their hives so this could therefore provide an annual income to whoever owns the land. Manuka trees are a robust tree, generally capable of competing with other scrub varieties so with some nurturing, they should be able to be established in this environment. Further, once established they will be complementary to residential development and most likely not require any further management and hopefully shade out the less desirable scrub species. 7. Planting of Native Species There will be other native tree varieties which could be planted and which should not require management. Two varieties which we believe would be complementary to residential development would be the Kowhai tree and Mountain flax. Both these varieties would encourage bird life and Mountain flax is also a suitable plant for wetlands. 8. Dams Within water catchment areas, small dams could be created as water features however these would only cover relatively small areas in relation to the total area of gullies. Middleton Valuation www.middleton.co.nz Page 4 of 5 M I trust we have provided you with adequate detail on net incomes as well as some ideas on how the steeper gully land can be used and managed. Should you however require any further assistance, please don't hesitate to contact us. Yours faithfully MIDDLETON VALUATION WiJl9^>~-^^ John\L. Middleton FNZIV FPINZ Registered Valuer Email: [email protected] Middleton Valuation www.middleton.co.nz Page 5 of 5 Valpart Holdings Limited Middleton Level 2. Westpac Building, 2 Devonport Road, PO Box 455. Tauranga, 3140 Valuation 1:107)578 4675 | F: (07) 577 9606 E: value^middleton.co.nz ] www.middleton.co.nz 81 Jellicoe Street, 29 April 2011 PO Box 397,Te Puke, 3153 T: (07) 573 8220 | F: (07) 573 5617 The Utilities Planner Tauranga City Council Private Bag 12022 TAURANGA - 2 MAY 2011 Attention: Lee Jordan TAURAI.oACMV COUNCIL Dear Lee SmartGrowth Long Term Settlement Plan Further to my report of 15 March 2011. In addition to the net incomes provided for kiwifruit orchards, drystock and dairy land, you have now also requested an estimated of net income for avocado orchards.