To: All Media
From: Meaghan Miller
Date: Tuesday, 16 April 2013

Subject: Council Revisits Property Strategy

The Queenstown Lakes District Council (QLDC) has conducted an initial review of its property with a view to minimise Council costs by maintaining ownership of strategic property only.

“If we don’t have a clear picture of what we own and why, we can’t make the best financial decisions in the interests of our ratepayers” QLDC chief executive Adam Feeley said.

The property review was prioritised by Council and set down as a key Chief Executive performance objective, earlier this year. On Friday the Council received an initial assessment of Council-held property, valued in excess of $23 million.

“All of these properties cost something to maintain, and many of them produce little or no return. Where properties have strategic value in managing the District Plan or our future resources, we will continue to maintain them. However, where they have no intrinsic value and are not producing a meaningful economic return relative to their value, then we need to consider selling them to fund more important Council activities.”

Mr Feeley said that at present the Council had simply signalled its desire to avoid the business of being a commercial landlord or property investor. Equally it had recognised the need to maintain important properties both for current and future community needs.

“There will be no fire sale. Any property disposals will be considered and over a lengthy period of time to optimise the right market conditions. We need to ensure there is a considered plan around property ownership. If we’ve got ratepayers money tied up in land then we need to have a good reason for it,” Mr Feeley said.

He stressed that special consideration must be given to heritage properties, including the cottages on Buckingham Street and Williams Cottage. The initial review of property had identified these buildings to be of significant public interest.

“Having gone to great lengths to acquire and restore them through enormous community effort, we cannot put these important heritage buildings at any risk,” Mr Feeley said.

“It may well be that the community is comfortable that public funds remain invested in these properties but it is beholden to Council to test that assumption,” he said. The intention with the heritage properties was to undertake public consultation, regarding their retention or otherwise.

“In the event that the community does support the sale of any of these properties, it would only be on the basis that a strict caveat is applied in the guise of a protective covenant. In other words the buildings would continue to be protected in perpetuity, “Mr Feeley said.

This approach had been successfully demonstrated with the Post Master's House which was purchased by Council, issued with a covenant and on-sold for successful commercial use.

He anticipated any consultation process would be informed by the community. “It will be important to discuss the issues with the associated trusts before any recommendations are made,” Mr Feeley said.

The only other exception in the property review was a decision taken on Friday to seek legal advice over the transfer of land in Suffolk Street to the Community Housing Trust.

“No decision has been taken at this stage regarding Suffolk Street land,” Mr Feeley said.

ENDS

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