Council meeting agenda - 4 June 2012 - Clarence City Council

"Rosny Hill Nature Recreation Area" 12A Akuna Street
Rosny, Tasmania
Areas outside of the two designated development zones should be considered
provided they remain sensitive to the other constraints of the Reserve. Proposals
should not be restricted to defined development zones but rather be assessed based
on their merits. It would appear the conservation value of the Reserve in
comparison to other reserves (eg National Parks, World Heritage Areas) is
comparatively low. Conversely the site, due its location in a largely developed area,
is well suited to the pursuit of recreational land uses and complementary
commercial activities for the benefit of tourists and the general public.
13.0 Mechanism and Process for Going to Market:
The following is our recommended process for going to market to seek proponents for the sensitive
commercial development of the RHNRA per the comments in this report.
� Council obtains a 99 year head-lease from the Crown for the RHNRA at a peppercorn rent;
� Council considers recommendations of this report and agrees on development concepts
Council believes are appropriate for the site;
� Revision of master plan and design for the site based on Council’s preferred future desired
character of the site;
� Council undertakes non-commercially viable development to promote increased active
recreational use of the property and provision of services infrastructure which will underpin
and facilitate commercial development;
� Council prepares marketing material and defines preferred development standards to be met
by proponents for both leases or business licenses;
� Council seeks Expressions of Interest from interested parties for commercial uses of the
RHNRA consistent with Council’s preferred development concepts (the Expression of Interest
is to include the proponents proposed sub-lease offer);
� A Council evaluation panel and probity officer are appointed to review Expressions of Interest
and short-list preferred proponents;
� Council appoints a commercial real estate agent or property consultant to negotiate lease or
license terms with preferred proponents;
� The proponent obtains a planning permit, and any other required business licences, prior to
lease finalisation;
� The lessee completes the development within a specified timeframe (or failing that the lease
is surrendered and other alternative proponents are considered).
An overview of the Expression of Interest Marketing method and why it is considered the most
appropriate is provided in the following section.
13.1 Expression of Interest:
This sale method incorporates an initial calling or advertising for expressions of interest (EOI) in the
form of non-binding offers. Following closing of the EOI period, qualified parties either enter direct
negotiation or are invited to participate in further closed bidding (a two staged EOI process) to
determine the most acceptable offer.
A two staged EOI process typically works as follows:
The property is offered publicly to the market, and interested parties are invited to submit by a
nominated date an EOI form confirming their interest, capability and price range. From the initial
EOI forms, suitably qualified parties are selected and invited to submit by a due date a formal and
final bid. Final bids are normally in the form of a contract for sale. The highest bidder (having
regard to conditions and capability) is then accepted by the vendor, contracts are exchanged and
the deposit paid.
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