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JANUARY 2015 BUSINESS PLAN FOR A MAJOR LAND TRANSACTION (PURSUANT TO SECTION 3.59(3) OF THE LOCAL GOVERNMENT ACT 1995) DISPOSAL OF THE PROPERTY AT 81 Angove Street, NORTH PERTH PREPARED BY: CITY OF VINCENT 244 VINCENT STREET LEEDERVILLE WA 6007

BUSINESS PLAN FOR A MAJOR LAND TRANSACTION · Street, North Perth. 2. PROPOSED MAJOR LAND TRANSACTION. The City of Vincent proposes to sell the property at 81 (Lot 500) Angove Street,

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Page 1: BUSINESS PLAN FOR A MAJOR LAND TRANSACTION · Street, North Perth. 2. PROPOSED MAJOR LAND TRANSACTION. The City of Vincent proposes to sell the property at 81 (Lot 500) Angove Street,

JANUARY 2015

BUSINESS PLAN FOR A MAJOR LAND TRANSACTION

(PURSUANT TO SECTION 3.59(3) OF THE LOCAL GOVERNMENT ACT 1995)

DISPOSAL OF THE PROPERTY AT 81 Angove Street, NORTH PERTH

PREPARED BY: CITY OF VINCENT 244 VINCENT STREET LEEDERVILLE WA 6007

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1. INTRODUCTION

The City of Vincent proposes to sell the property at 81 (Lot 500) Angove Street, North Perth.

2. PROPOSED MAJOR LAND TRANSACTION

The City of Vincent proposes to sell the property at 81 (Lot 500) Angove Street, North Perth for an estimated amount of $1,900,000 – All estimates are exclusive of GST.

Land Details:

Lot 500 Plan 66832 Volume 2734 Folio 345

(Refer to Appendix 1)

Land Ownership:

The Registered Property as per the Certificate of Title of the subject lot is the City of Vincent of Westralia Square 141 St Georges Terrace Perth, Registered 11 April 1995.

Encumbrances:

Lot 500 on Plan 66832, Certificate of Title Volume 2734 Folio 345 The following notations are registered on the Certificate of Title: 1. H110392 Memorial. Heritage of Western Australia Act 1990. Lodged

17.5.1999 2. L195613 Memorial. Heritage of Western Australia Act 1990. Lodged

8.1.2010. The memorials relate to the subject property being listed with the Heritage Council of Western Australia and an associated conservation plan that has been established to maintain the premises.

Land Zoning:

Under the provisions of the Metropolitan Region Scheme the subject property is zoned “Urban”. Under the City of Vincent’s current Town Planning Scheme No. 1 the subject property is zoned “Residential R30 (Smiths Lake Precinct)”. Current Use:

The heritage building at 81 (Lot 500) Angove Street is currently leased to Grow WA Inc. and the rear of the property is vacant.

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3. EXPECTED EFFECT ON OTHER PERSONS PROVIDING FACILITIES AND SERVICES (SECTION 3.59(3)(B))

The sale of the property has the following advantages and benefits:

Advantages/Benefits:

1. Sale proceeds from the property is to provide funds to make good the

current financial deficit of the City.

2. Sale proceeds will be used to repay the balance of loan for the purchase of the property.

3. Sale proceeds will remove the requirement for the allocation of funds for maintenance of the property at 81 (Lot 500) Angove Street.

Disadvantages:

1. Sale of City of Vincent Assets.

2. No lease revenue received for 81 (Lot 500) Angove Street.

4. THE EXPECTED FINANCIAL EFFECT ON THE CITY OF VINCENT

(SECTION 3.59(3)(C))

The City is estimated to receive the amount of $1,900,000 (excl GST) from the sale of the property. Expenditure:

The City has incurred the cost of $3,000 for the valuation of this property. It is estimated the City will incur costs of $25,000 associated in the settlement of the property. The City will not incur any further maintenance expenditure associated with the properties following the sale of the properties. This is currently budgeted to be $5,330 this financial year. The proceeds from the sale of the property will also be used to repay the balance of the loan taken out to fund the purchase of the building.

Revenue:

The heritage listed building at 81 (Lot 500) Angove Street is a former Police Station which is leased out to Grow WA Inc. until 30 May 2015. The estimated budget revenue for this financial year is $31,347 excl GST.

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5. IMPACT ON STRATEGIC PLAN (SECTION 3.59(3)(D))

Strategic Community Plan (2013-2023):

The sale of the property at 81 Angove Street are in keeping with the City’s Strategic Community Plan 2013 – 2023 – Key Result Area: Leadership, Governance and Management:

“4.1.2 Manage the organisation in a responsible, efficient and accountable

manner:

(a) Continue to adopt best practise to ensure the financial resources and assets of the City are responsibly managed and the quality of services, performance procedures and processes is improved and enhanced.”

6. THE ABILITY OF THE CITY TO MANAGE THE TRANSACTION (SECTION

3.59(3)(E))

The sale of the property at 81 (Lot 500) Angove Street will be conducted by the City’s Chief Executive Officer and Directors with support from the City’s Solicitors. Consultant professionals relevant, such as valuers, property consultants and settlement agents may be engaged on an “as need basis” to provide necessary advice.

The property sale will be conducted in accordance with Section 3.58 and Section 3.59 of the Local Government Act (1995) and relevant regulations.

7. OTHER MATTERS (SECTION 3.59(3)(F))

Nil.

________________________________________ Submissions Written submissions may be sent to: Chief Executive Officer City of Vincent 244 Vincent Street LEEDERVILLE WA 6007 Marked “Major Land Transaction” And be received by 5pm, Monday 16 March 2015

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Appendix 1 Certificate of Title

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