Ordinary Meeting of Council 29 October 2018 311

File: PR-005.01.213 Doc: IC18/493

ITEM 9 PROPOSED ACQUISITION OF 2 ARROW AVENUE, FIGTREE AND 470 PRINCES HIGHWAY, WOONONA UNDER THE VOLUNTARY PURCHASE SCHEME FOR FLOOD AFFECTED PROPERTIES

Council has an adopted Voluntary Purchase Scheme for the Allans Creek Catchment area and the Collins Creek Catchment area as one of its flood mitigation strategies for these areas. No 2 Arrow Avenue, Figtree and No 470 Princes Highway, Woonona, are eligible for acquisition under the Voluntary Purchase Scheme for these areas. The Flood Plain Management and Stormwater Section within Council has requested the Property Section to acquire both properties.

This report seeks Council’s authority to proceed with the acquisitions subject to funding availability from the Office of Environment and Heritage.

RECOMMENDATION

1 Council authorise the acquisition of 2 Arrow Avenue, Figtree and 470 Princes Highway, Woonona, as shown by black hatching on the attachments to the report and subject to the following conditions:

a Purchase price of $650,000 (GST free) for 2 Arrow Avenue, Figtree

b Purchase price of $2M (GST free) for 470 Princes Highway, Woonona

c Each party be responsible for their own legal costs

d Funding being provided by the Office of Environment and Heritage for two-thirds of each purchase price and each demolition cost; and

e An amount of $383,334 be provided from Council’s Capital Budget Contingency for remaining purchase and demolition costs

2 Upon the acquisitions being finalised, No 2 Arrow Avenue, Figtree and No 470 Princes Highway, Woonona be classified as Community land in accordance with the Local Government Act 1993.

3 Authority be granted to the Lord Mayor and the General Manager to affix the Common Seal of Council to the transfer documents and any other documentation required to give effect to the resolution.

REPORT AUTHORISATIONS

Report of: Peter Coyte, Manager Property and Recreation Authorised by: Kerry Hunt, Director Community Services

ATTACHMENTS

1 Business Paper Map Acquisition of 2 Arrow Avenue, Figtree 2 Business Paper Map Community Land Adjoining 2 Arrow Avenue, Figtree 3 Business Paper Map Acquisition of 470 Princes Highway, Woonona 4 Business Paper Map Community Land in close proximity to 470 Princes Highway, Woonona

BACKGROUND

2 Arrow Avenue, Figtree

The Allans Creek Floodplain Risk Management Study and Plan completed in 2006 and adopted by Council identifies 18 properties at high risk from flooding and therefore eligible for purchase under the Voluntary Purchase Scheme. The scheme is partly funded by the Office of Environment and Heritage (OEH) under criteria set by the State Government. To date nine properties have been purchased, one has been found to no longer meet the eligibility criteria and eight remained to be purchased amongst which is 2 Arrow Avenue, Figtree. A number of neighbouring properties along this stretch of Byarong Creek are already in Council’s ownership (refer Attachments 1 and 2).

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Council’s Floodplain Section has requested that the Property Section purchase No 2 Arrow Avenue, Figtree. The purchase of 2 Arrow Avenue, Figtree, will place in public ownership the missing section of the right bank of Byarong Creek. It will allow for mitigation of flood risk at that property and also facilitate riparian vegetation management along the whole right bank of the creek and also the creek corridor which will in turn mitigate flood risk to other properties in this area.

Having previously made enquiries with the owner regarding voluntarily selling her property to Council under the Voluntary Purchase Scheme, Council wrote to the owner again in the first half of 2018. The owner replied that she was interested in selling and therefore Council obtained a market valuation report from the registered valuer, Walsh and Monaghan. The purchase price offered and agreed to by the owner reflects the valuation figure determined in the market valuation report. The purchase price is $650,000 (GST free). The property consists of 695.6m² and a dwelling house which is proposed to be demolished.

470 Princes Highway, Woonona

The Collins Creek Floodplain Risk Management Study and Plan completed in June 2014 and adopted by Council identifies two properties at very high risk from flooding in this catchment and therefore eligible for purchase under the Voluntary Purchase Scheme. 470 Princes Highway, Woonona, is one of these properties (refer Attachment 3 and 4). The other one is 17 Wilford Street, Corrimal, which was purchased by Council in 2017. The purchase of 470 Princes highway, Woonona, as requested by Council’s Floodplain Section will see the completion of the Voluntary Purchase Scheme for this catchment area.

Council wrote to the owners in the first half of 2018 enquiring if they would be interested in selling their property to Council under the Voluntary Purchase Scheme. Both owners responded that they were interested and Council obtained a market valuation report from the registered valuer, Walsh and Monaghan on the property. The purchase price offered and agreed to by the owners is in line with the determination in the market valuation report. The purchase price is $2M (GST free). The property consists of 5,518m² and a dwelling house which is proposed to be demolished.

PROPOSAL

It is proposed that Council acquire both properties in line with the conditions outlined in this report.

CONSULTATION AND COMMUNICATION

Floodplain Management and Stormwater Section

Walsh and Monaghan, Property Valuers

Office of Environment and Heritage

Property owners of No 2 Arrow Avenue, Figtree and 470 Princes Highway, Woonona.

PLANNING AND POLICY IMPACT

This acquisition is in accordance with Council’s policy “Land and Easement Acquisition and Disposal”. Wollongong 2022 Community Goal and Objective – This report contributes to the Wollongong 2022 Objective “Implement a coordinated approach to floodplain and stormwater management” under the Community Goal “We value and protect the environment”.

It specifically delivers on core business activities as detailed in the Property Services Service Plan 2018-19 “sale and purchase of land on behalf of Council”.

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FINANCIAL IMPLICATIONS

Property Total Cost

(purchase + demolition)

Funding from

OEH

Funding from

Council

2 Arrow Avenue, Figtree $710,000 $473,333 $236,667

470 Princes Highway, Woonona $2,060,000 $1,373,333 $686,667

TOTAL $2,770,000 $1,846,666 $923,334

The OEH has committed to funding the two properties and at the time of writing this report the funding agreement for each property was being prepared.

Funding available in the Capital Works Program for 2018/19 for the Voluntary Purchase Scheme is $540,000. Required additional funding from the overall Capital Budget Contingency for both purchases and demolition is $383,334.

On completion of the demolition and restoration of the site to open space land, there will be additional on-going maintenance costs estimated to be in the order of $6,000 per annum. The Capital Budget Contingency adjustment required will be made through the monthly reporting process once confirmation of contracts and a settlement date is determined.

CONCLUSION

The acquisitions are consistent with the recommendations in the Floodplain Risk Management Plans and will assist with mitigating the flood risk in the Allans Creek and Collins Creek catchment areas.

Ordinary Meeting of Council

Item 9 - Attachment 1 - Business Paper Map Acquisition of 2 Arrow Avenue, Figtree

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Ordinary Meeting of Council

Item 9 - Attachment 1 - Business Paper Map Acquisition of 2 Arrow Avenue, Figtree

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Item 9 - Attachment 2 - Business Paper Map Community Land Adjoining 2 Arrow Avenue, Figtree

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Ordinary Meeting of Council

Item 9 - Attachment 3 - Business Paper Map Acquisition of 470 Princes Highway, Woonona

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Ordinary Meeting of Council

Item 9 - Attachment 3 - Business Paper Map Acquisition of 470 Princes Highway, Woonona

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Ordinary Meeting of Council

Item 9 - Attachment 4 - Business Paper Map Community Land in close proximity to 470 Princes Highway, Woonona

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