Council Minutes - Town of Cambridge

COUNCIL MINUTESTUESDAY 26 JUNE 2012CR12.100 OCEAN MIA SALES STRATEGY REVIEWPURPOSE OF REPORT:To review the sales strategy for the Town’s Ocean Mia land development and seek Councilendorsement to release a limited number of lots in the 'Cityside' precinct.CONFIDENTIALITYThe attachment and any discussion by Elected Members on the attachment is deemedconfidential under Section 5.23 (2) (e) (ii) 'a matter that if disclosed, would reveal informationthat has a commercial value to a person" and also under Regulation 4A of the LocalGovernment (Administration) Regulations 'the determination by the local government of a pricefor the sale or purchase of property by the local government, and the discussion of such amatter, are matters prescribed for the purposes of section 5.23(2)(h).'BACKGROUND:The Ocean Mia land development comprises of 66 single-residential lots and 2 multi-residentialsites.The first land auction held in December 2007 resulted in a gross realisation of $13.5 million withsquare metre rates ranging between $2,440 to $2,950, however, the second auction was not assuccessful, with only three lots sold under the hammer, as the effects of the Global FinancialCrisis and a downturn in the property market took hold.The marketing campaign re-positioned itself to focus on the ‘Seaside lots’ at ‘new prices’ andsales progressively occurred to the point where currently only one lot remains unsold in'Seaside' precinct.The last review of the overall sales strategy by Council was in July 2010 when it was decidedthat:"The lots in Ocean Mia ‘City Side’ (comprising of Lots 539 to 572, but excluding Lot 560)and the two multi-residential lots at Ocean Mia (Lots 501 and 560) be effectively landbanked and not be released for a period of two years, unless circumstances changeand it is deemed that Council should reconsider."For a sales history of the development, refer to:• GC08.64 - August 2008;• GC08.88 - November 2008• GC08.100 - December 2008• Item 13.1 - December 2009 (Confidential Item)More recently, in November 2011, Council authorised the Chief Executive Officer to negotiatethe sale of the two residential lots with an offer for the two being accepted in March this year.The sale is subject to due diligence and will yield the Town $7 million net of GST and agentsfees.H:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\JUNE 2012\C CR.DOCX 182