MEETING OF COUNCIL - Town of Cambridge
MEETING OF COUNCIL - Town of Cambridge
MEETING OF COUNCIL - Town of Cambridge
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<strong>COUNCIL</strong><br />
27 NOVEMBER 2012<br />
10.2 FORMER NURSERY SITE JOLIMONT - AGREEMENT WITH LANDCORP<br />
PURPOSE <strong>OF</strong> REPORT:<br />
To seek Council endorsement to arrangements for the development <strong>of</strong> the land known as the<br />
Former Nursery Site on Salvado Road, Jolimont.<br />
BACKGROUND:<br />
Council endorsed, in a Confidential Report (Item CR 13.1 - 27 March 2012), principles that<br />
would be acceptable to enter into an agreement with Landcorp for the disposition and<br />
development <strong>of</strong> the site commonly known as the former Nursery Site in Salvado Road,<br />
Jolimont.<br />
In August 2012 (Item CR12.126), Council decided that a Business Plan for the disposition <strong>of</strong><br />
the Land in accordance with s3.59 <strong>of</strong> the Local Government Act 1995 would be prepared and<br />
advertised.<br />
In October 2012 (Item CR 10.1, Council considered submissions made regarding the Business<br />
Plan and determined to adopt the Business Plan for the disposition <strong>of</strong> the land. This allowed the<br />
<strong>Town</strong> to enter into an agreement with LandCorp for the development <strong>of</strong> the site.<br />
DETAILS:<br />
A Heads <strong>of</strong> Agreement document has been developed with LandCorp which sets out the<br />
overarching principles and mechanisms for development <strong>of</strong> the Land. This agreement then<br />
forms the basis <strong>of</strong> a Development Agreement which would contain all <strong>of</strong> the necessary details<br />
to undertake the project.<br />
This Heads <strong>of</strong> Agreement is included as Confidential Attachment to this report.<br />
The principles endorsed by Council in March 2012 and form the basis <strong>of</strong> the agreement are<br />
summarised as follows:<br />
Principle 1:<br />
The <strong>Town</strong> will undertake a development agreement on the proviso that it is in a similar<br />
financial position as if it undertook the development itself.<br />
Principle 2:<br />
The site is transferred to Landcorp (after it is subdivided from Lot 520) provided that it<br />
places the <strong>Town</strong> in a no worse <strong>of</strong>f financial position (including taxes and charges) as if it<br />
retained title during the project life.<br />
Principle 3<br />
The net proceeds from the project are split 60/40 in favour <strong>of</strong> the <strong>Town</strong>.<br />
Principle 4<br />
An advance <strong>of</strong> $5million (net <strong>of</strong> GST if applicable) is paid to the <strong>Town</strong> within 15<br />
business days <strong>of</strong> executing the Development Agreement, and that any financing costs<br />
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