Thursday, December 22, 2022

AGENDA ITEM DECEMBER 15 2022

 


16.3. Intention to Dispose of York Park and Associated Land to Stadiums Tasmania 
16.3 FILE NO: SF6660 AUTHOR: Duncan Campbell (Team Leader Legal Services) CHIEF 

EXECUTIVE OFFICER APPROVAL: Michael Stretton 

DECISION STATEMENT: To consider forming an intention to dispose of York Park to Stadiums Tasmania. 

RELEVANT LEGISLATION: Local Government Act 1993 (Tas) Stadiums Tasmania Act 2022 

RECOMMENDATION: That Council 1. pursuant to section 178 of the Local Government Act 1993 (Tas), forms an intention to transfer York Park and associated land and assets at 2 Invermay Road, Invermay to Stadiums Tasmania for nominal consideration, with such land totalling approximately 9.44ha as indicated as Lot 1 as shown in the map below: 
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 2. notes that the transfer of the land, as a result of forming the intention at Recommendation 1, will not occur until each of the following events has occurred: 

 (a) the completion of the 21 day public objection period as required by section 178(4) of the Local Government Act 1993 (Tas); 

 (b) any objection received as part of that objection process has been formally considered by Council; 

 (c) where an appeal is made to the Tasmanian Civil and Administrative Appeals Tribunal, the determination of such appeal; and, 

 (d) a planning permit has been issued by the Council in its capacity as Planning Authority to subdivide the relevant land.

3. requests the Chief Executive Officer to determine the exact dimensions and parameters of the land and assets to be transferred and to exercise Council's powers in respect of the Local Government Act 1993 (Tas) and the Stadiums Tasmania Act 2022 in order to carry through with the intention formed at Recommendation 1 subject to the satisfaction of the requirements of Recommendation 2. 4. notes that the term Chief Executive Officer is a term of reference for the General Manager as appointed by Council pursuant to section 61 of the Local Government Act 1993 (Tas). 

REPORT: The Council is the owner of York Park and associated land located at 2 Invermay Road, Invermay (the Stadium). The site containing the Stadium spans a number of titles and comprises 
 • the Stadium itself, QVMAG, 
 • Victoria Gardens, flood levees, 
 • bowling green and associated facilities, 
 • carparks, cafes, gardens and a railway museum. 

The site previously included other assets which have since been subdivided and further developed, such as 
 • the Big Picture School, 
 • Tram Sheds Function Centre and 
 • a number of University of Tasmania assets. 

The Stadium has hosted a number of important sporting and cultural events across its lengthy history, with similar high-profile events to continue into the future. 

The Stadiums Tasmania Act 2022 established the State Government entity Stadiums Tasmania. Stadiums Tasmania has a number of legislated functions as set out at section 6 of the Stadiums Tasmania Act 2022, including: - to be the custodian of major public stadiums; - to acquire, manage and invest in assigned assets; - to host sporting, entertainment and event content and services; and - to ensure the safe, accessible, effective and efficient operation, use and development of assigned assets.

The Council's officers have been working with the State Government to support a formal decision on whether to transfer the Stadium to Stadiums Tasmania. 

The proposed transfer is to occur within the context of continued public use of such facility. Page 111 
The Future Directions Plan The transfer of the Stadium is supported by the Future Directions Plan - York Park (UTAS Stadium), which was endorsed by Council at its Meeting on 11 February 2021 (ECM Doc Set ID 4489811)

The implementation of that plan will see the transfer of the asset to a State funded entity which will be best placed to respond to the financial demands of operating a large, public sporting and cultural venue into the future. 

Whilst the envisaged model operated by Stadiums Tasmania differs from the trust discussed in the Future Directions Plan, it is expected that the model operated by Stadiums Tasmania will provide a professional level of service and ensure that the needs of the public continue to be met. 

Importantly, it will allow for the investment and long-term financial stability that is required to meet the growing needs of Launceston and Tasmania more generally. Financials The transfer will relieve the Council and its ratepayers of ongoing yearly deficits exceeding $3,000,000 whilst ensuring that the Stadium remains available for public use. Further detail on the operating costs of the Stadium are detailed below:
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The table below further details the value of assets to be transferred to Stadiums Tasmania, the accumulated depreciation and the written down value of those assets. 

The table also shows the projected written down and depreciation costs as at 15 December 2022. 

Note: projected depreciation is based on average daily calculation and not final depreciation figure. In summary, the projected written down value of the relevant assets is $63,000,750.58

However, that number cannot be confirmed until the responsibilities for shared services at the site have been determined which may also be affected by the proposed subdivision. Manholes, trees and bins are not included in the stated values due to grouped asset data. 

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Disposal Mechanism The land under consideration is public land within the meaning of the Local Government Act 1993 (Tas). That designation triggers the requirements of section 178 of Local Government Act 1993 (Tas). 

Relevantly, that section provides that if the Council forms an intention to sell public land, public notice of that fact is to be given in accordance with the requirements, as detailed below: If a council intends to sell, lease, donate, exchange or otherwise dispose of public land, the general manager is to:
(a) publish that intention on at least two separate occasions in a daily newspaper circulating in the municipal area; and.

(b) (ab) display a copy of the notice on any boundary of the public land that abuts a highway; and

(c) (b) notify the public that objection to the proposed sale, lease, donation, exchange or disposal may be made to the general manager within 21 days of the date of the first publication. The Council's officers will ensure that notice of the intention to dispose of the Stadium is properly given and in line with legislative requirements.

If no objections are received to the disposal and subject to the issue of planning permit as detailed below, the transfer can occur at the direction of the Chief Executive Officer in accordance with the authority given by this decision outlined in the recommendations in the report. 

If an objection is received, the matter will return to Council for formal consideration. If an objector subsequently lodges an appeal with the Tasmanian Civil and Administrative Appeals Tribunal (TASCAT), the Council is further prevented from proceeding until that matter has been finalised. 

It is important to highlight that there is no intention to transfer the land until a planning permit has been issued to facilitate the relevant subdivision, including the determination of any resultant appeal to TASCAT against the issue of such permit. 

The Council's officers have engaged an external consultant to make such application for a planning permit, and the consideration of such application will be considered in due course. Once all of the above requirements have been met, the transfer can occur by way of a transfer notice or transfer agreement pursuant to the Stadiums Tasmania Act 2022 or as otherwise determined appropriate. 

Valuation The Council's officers have obtained a third party expert valuation from LG Valuation Services, putting the total asset fair value at $95,112,750. 

Third Party Rights The Council's officers have consulted with third party rights holders to ensure they are aware of the proposed disposal process. Representatives of the State Government expect existing agreements at the site will continue to be honoured and transfer to Stadiums Tasmania on a mutually agreed transfer date. 

The Council's officers will work with Stadiums Tasmania and affected third parties to ensure that any disruption is kept to a minimum. 

Employee Entitlements The transfer of employees and their entitlements will occur as an operational matter and is being guided by the advice of an external firm specialising in employment law. 

RISK IMPLICATIONS: Risks considered relevant to this matter have been identified and discussed in the report above. 

ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACT: The transfer of the Stadium to Stadiums Tasmania will allow for the necessary capital upgrades required for the facility, which in turn are expected to provide positive economic and social benefits for the community. 

STRATEGIC DOCUMENT REFERENCE: City of Launceston Corporate Strategic Plan 2014-2024 Priority Area 3 - We are a progressive leader that is accountable to our governance obligations and responsive to our community. 

10-year Goal -To ensure decisions are made in a transparent and accountable way, that effectively meet our statutory obligations, support quality services and underpin the long term sustainability of our organisation. 

Focus Area - 2. To fairly and equitably discharge our statutory and governance obligations. 

BUDGET AND FINANCIAL IMPLICATIONS: The budget adjustment consideration of this item has been approved by the General Manager Organisational Services Network. The successful transfer of the Stadium to Stadiums Tasmania is expected to result in a positive effect on the Council's operating budget, in in the order of $2,732,025 for the 2022/2023 financial year. 

DISCLOSURE OF INTERESTS: The Author and General Manager have no interests to declare in this matter. 

ATTACHMENTS: Nil

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