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A recommendation to commence the bulk reclassification of council-owned public land will be considered by the Administrator at the next Central Coast Council meeting on Tuesday, August 22, and then the community will be given an opportunity to comment. Here’s what you need to know.
By Jacquelene Pearson
Dr Alic Howe, Council’s Director of Environment and Planning, has described a staff recommendation to reclassify 80 lots of operational land to community land and 11 lots of community land to operational land as part of “the regular business of council”. However, very little about the business of Central Coast Council has been ‘regular’ since the 2020 cashflow crisis, suspension and subsequent sacking of the elected councillors.
Whilst the bulk reclassification includes some good news for the community – 80 lots of operational land may be reclassified as community land which means they cannot be sold – it would also see the continuation of plans to reclassify and potentially sell seven of the 10 sites included in Tranche 3 of the emergency asset selloff. The staff proposal would see three sites removed from the Tranche 3 list but another four sites have been identified for potential reclassification and sale.
Rik Hart was acting CEO at the time the asset sale tranches were drawn up by staff but he does not deem it necessary to declare a conflict of interest when dealing with matters related to the asset sale program now he is the substitute for the elected council in his role as Administrator.
As The Point has regularly reported since October 2020, Mr Hart and former Interim Administrator Dick Persson both made public undertakings that no environmental land would be sold as part of the asset disposal program and that there would be no “fire sales”. Both promises were broken with transactions such as the sale of highly sensitive environmental land at Spring Creek, Doyalson for a bargain basement price. The Warner Business Park land was sold by council for its “unimproved value” and quickly resold by a developer for a substantial profit. The current Administrator also went ahead with the sale of 2 Bounty Close to Central Coast Group Training for a fraction of its value when the council’s own consultants had questioned the probity of the deal.
Council has apparently returned to a period of financial stability. The $60 million the unnamed bank that provided a $100 million emergency loan in late 2020 required the council to raise through asset disposals has long been achieved and, yet, seven out of the 10 Tranche 3 assets and an additional four are now to be reclassified for potential sale or long-term lease. How can you assess whether or not this latest proposal for reclassifying land is in the best interests of the community?
The recommendation
Rik Hart, Central Coast Council’s Administrator, will be asked to consider the following staff recommendation at the August council meeting:
- Commence the reclassification of 80 lots of operational land located in 12 suburbs to community land including four sites with improvements at Glenning Valley (part of Berkley Sports Complex), Kanwal (Lakelands Community Centre), Wamberal (Wamberal Memorial Hall) and Yarramalong (St Barnabas Church); and nine park and natural area sites (some of which are groups of sites, comprising 75 lots in all) at Buff Point, Davistown, Hamlyn Terrace, Jilliby, Lisarow, Noraville, Springfield and Watanobbi.
- If the Administrator resolves to accept the recommendation the reclassification will need to go on public exhibition for 28 days. Once reclassified these sites will be subject to further community consultation for future categorisation to determine the primary use of each site (general use, park, natural area etc).
- Staff then want Mr Hart to rescind Council resolutions made in July 2021 so that three sites that were in Tranche 3 of the 2020-21 asset selloff will not be reclassified to operational land for subsequent sale. The saved sites would be 4 and 6 Tyrrell Place KILLARNEY VALE (Lot 479 DP 704452 and Lot 478 DP 704452); 8 and 10 Bay Village Road BATEAU BAY (Lot 51 DP 1154778 and Lot 2 DP 1154356); and 10W Woodcutters Road WOONGARAH (Lot 32 DP 1044070).
- The Administrator will be asked to commence the reclassification from community land to operational land: of land facing Henry Parry Drive that provides access to the former Council Chambers at 49-51 Mann St GOSFORD, being Lot 1 in DP 251476; land abutting Kanangra Drive to the east known as 50W Parraweena Drive GWANDALAN, being Lot 1 in DP 1043151; land being part of 6W Kemira Road LAKE MUNMORAH; being part of Lot 79 in DP 217918; and land at 20 Summerland Road SUMMERLAND POINT known as Summerland Sporties, and currently leased to Doyalson-Wyee RSL Club, being part of Lot 4 in DP 263812.
- He will be asked to progress the subdivision of land to facilitate reclassification of part of 6W Kemira Road LAKE MUNMORAH and part of 20 Summerland Road SUMMERLAND POINT.
- It is further recommended that Mr Hart notes Council’s intention to progress resolutions 52/21 of 22 March 2022 and 202/21/8-13 of 27 July 2021 to reclassify the following seven sites from community to operational land: 18 Dane Drive, GOSFORD, being Lot 2 DP 1011876; 48W Wallarah Road, GOROKAN, being Lot 2 DP 733448; 191 Wallarah Road, KANWAL, being Lot 21 DP 813270; 75 Bungary Road, NORAH HEAD, being Lot 5 Sec 24 DP 758779 and Lot 1 DP 860696; Part 2-4 Park Road, THE ENTRANCE, being Lot 10 DP 1285833 (part only) and Lot 1 DP 406038 (part only); 13 and 15 Yaralla Road, TOUKLEY, being Lot 78 DP 20493 and Lot 79 DP 20493; and car park and curtilage, Austin Butler Access, WOY WOY, being Lot 19 DP 235385 (part only).
The rationale
“It is the regular business of council to transact in land,” said Dr Alice Howe when asked whether this bulk land reclassification was a thinly disguised extension of the asset selloff program initiated in 2020.
“We get land on a regular basis. We get it dedicated to us through the development process. We get it transferred to us from the Crown and we dispose of land when there are high value pieces that can benefit the community,” Dr Howe said.
“This review process has really taken us out of the urgency that we were in in the financial crisis and looking at a business as usual approach to the holding of land by council,” she said.
“We have identified that we have got some land that should be classified as community land that is not because that is the better use of it and we have got some land that is classified as community that in our view would be better classified as operational so it can be utilised for broad benefit and all of these 11 sites that we are recommending to council are about that benefit.”
According to Dr Howe, the rationale behind this proposed bulk land reclassification is multi-faceted.
“We did get a bit of feedback through the plan of management process that there were parcels of operationally classified land that should be community land,” she said. “We have also had requests from a number of lessees and adjoining land owners about interest in some of the land.
“We have got a couple of cases where we need to complete the rezoning process, so the land was rezoned but the reclassification process wasn’t completed.
“Lastly and importantly, we are now in a stable financial position so some of the decisions that were made the year before last were in the context that we needed to raise revenue for council and we are no longer in that position so we really reflected on whether or not we needed to progress with all of those resolutions that council made in 2021.
“What we are recommending to council next week is to reclassify 80 lots. Essentially there’s four sites that have got community facilities on them but they are classified as operational land so we want to tidy that up.
“There’s also 75 lots that are classified as operational land that are really open space or natural areas that we think will be better suited as community land and will then go through that categorisation process a bit later.”
Dr Howe said the 75 sites are primarily bushland and wetland areas and the majority are located at Davistown and are connected in one way or the other to the Davistown wetlands.
Of the 10 sites originally listed as Tranche 3 of the asset selloff, Dr Howe said three sites no longer needed to be sold.
“We don’t think that we need the money anymore and we don’t see a need to reclassify them at this point of time.”
However, she said council had rationale for continuing with the reclassification of the other seven sites and had identified four new sites they “think should be reclassified”.
The basics
Putting aside road reserve, public land owned by council is classified as either operational land or community land. Operational land is typically used for business purposes and includes council buildings, council depots etc. It can be sold via a simple council resolution.
Community land can’t be sold and it can only be used for the purpose for which it is categorised, as described in a plan of management. Community land is categorised as general use, sportsground, park, area of cultural significance or natural area.
Operational land can be sold or leased for longer terms than those permitted for community land.
“Where we have got facilities that are leased, particularly for commercial purposes, it is a lot more practical to have them in an operational land classification because it means you can have longer terms and people who are on those leases can do more things with the actual lease holding,” Dr Howe said.
What to set your sights on
A complete list of the sites included in the bulk reclassification recommendation can be found appended to next week’s council meeting agenda. Make sure you read the attachments to find out what’s in your area and fully understand the gains and losses.
As stated earlier in this article, the reclassification of operational land to community land is a positive for the community. Community land is deemed to be of value to the community. It cannot be sold and must be covered by a plan of management. The rationale for reclassifying community land to operational land requires closer scrutiny. Here’s a summary of the sites listed for reclassification from community land to operational land that we think will be of greatest interest to the community.
Gosford Bowlo 18 Dane Drive, GOSFORD, being Lot 2 DP 1011876
According to Dr Howe the Gosford Bowling Club site is part of the Gosford waterfront revitalisation initiative. The current lease runs out at the end of 2024, and council is prepared to offer another lease. However, Dr Howe and council’s CEO, David Farmer, were adamant that the site needs to become operational land. That imperative is not immediate so the bowlers can continue to enjoy their greens for a while yet, but the reprieve is temporary.
Mr Farmer said Central Coast Council had no desire to continue to own the land now occupied by the Gosford Bowling Club.
“Is that the highest use for that site?” Mr Farmer asked. “It is a critical part of waterfront redevelopment but the timing of that is another issue.”
When asked to explain how the Gosford Bowling Club land is an essential element of the waterfront redevelopment, Mr Farmer said: “It will be a Crown Entity that redevelops it and the timing of that is somewhere into the future.
“Realistically a portion of council land, CBD land, in that location with that strategic value for that purpose is not the highest and best use and that has been clearly council’s position,” he said.
“We need to think about bowling clubs… the vast majority of bowling clubs in Australia are built on private land that they own, they are struggling to survive and make a reasonable rate and if they owned that land they would have sold it already and the only reason they still exist is that the council own the land and the Leagues Club have bailed them out.
“Ultimately we have to think about the longer-term community benefit for that space.”
Dr Howe said that part of the new lease with the Gosford Bowling Club would be to “work on a transitional arrangement.”
She said the timing would depend on how redevelopment process works.
“We don’t intend to remove them from the site unless required. We don’t need to do that tomorrow and we have made it clear to the club it will take a couple of years to work through that process.
“We have committed to help them work through that process.
“I think it is probably unlikely that we will give them land elsewhere,” she said.
The Greens at The Entrance
Mr Farmer did intimate that the reclassification of The Greens at The Entrance, to operational land may provide the Gosford bowlers with an alternative venue for their future pursuit of the sport.
The reclassification of The Greens is necessary, according to Alice Howe, because the current tenant is “not able to repair the fire damaged building because of the constraints around community land. There’s difficulty both in terms of being able to raise finance against a community land lease as well as there are practicalities about what is permissible on community land classification.”
Council is undecided as to whether it would continue to own the land and offer a long-term commercial lease or sell the land.
Austin Butler AC
“There has been a request from Peninsula Plaza to acquire that land and there is a council resolution to that effect at present to enable them to provided safe access,” Dr Howe said.
She said there currently existed a “conflict between pedestrian access and heavy vehicle docking”.
A subdivision is required as well because the 4000 square metres the council wants to sell to Peninsula Plaza is only part of the site.
“It would make more sense to sell that land because it gives council some revenue that we could reinvest in the local area. The administrator has indicated some interest in being about to do that,” Dr Howe said.
When quizzed about the value of the land she said it would be sold for “millions” but negotiations hadn’t been concluded. Note it is illegal to sell community land. Technically the tactic of negotiating to sell before reclassifying land is legally risky.
“The Administrator has made public statements about Austin Butler, that is for him to comment on… Rik’s made clear he has got an open mind, can see why from a safety perspective it would be good to change access,” Mr Farmer said.
The Woy Woy Peninsula community is understood to have been collecting signatures for a petition to stop the sale of Austin Butler AC since it was first listed as part of Tranche 3. Several community gatherings have also been held and well attended.
What’s missing?
If it is disappointing that Central Coast Council is continuing to reclassify community land to operational to sell it is even more so to those who care about the environment to find that Porters Creek Wetland has not been considered for reclassification to community land.
Porters Creek Wetland is the Coast’s largest freshwater wetland and is a vital filtration system for the whole of the Tuggerah Lakes. How can this asset be operational land, you may ask?
“The airport masterplan process is due to be exhibited this calendar year and as part of that process we will be identifying what are the areas that will be affected by the master plan and what are the areas that can be transitioned to community land,” Dr Howe said.
You may recall that the Porters Creek Wetland was about to be covered by a Conservation Agreement negotiated with the NSW Biodiversity Conservation Trust in 2020. The agreement was shelved by council, without the knowledge of the BCT, directly after the suspension of the elected councillors in 2020.
“There are some practical benefits in transitioning from operational and into community and into a stewardship site in one go, there is more value to the ratepayer in doing in that way than in doing it in two steps for reasons that are complex and to do with the biodiversity stewardship scheme so it is more beneficial to do all of that in one go.
“It is still our intention to transfer the majority of those lands into community tenure but it needs to be done in combination with the master plan effort so we are making sure we are getting the best value and that we are not making decisions without understanding what the implications are for the airport.”
What happens next?
If Rik Hart adopts the staff recommendation and moves it as a council resolution he will kick off several processes that appear to be planned to take place concurrently.
The reclassification of operational land to community land happens within the realm of council so will move straight to public exhibition, the preparation of a further report and then a final council resolution once community feedback is considered.
The reclassification of operational to community requires a few more steps. The Local Planning Panel has an advice role and, according to Dr Howe, will consider the bulk reclassification recommendation at a public meeting.
“The local planning panel doesn’t have a decision-making role in the process at all but one of the steps is to refer it to the local planning panel, ask the panel if it has any advice on the proposal and we do this with all rezonings so it is not just reclassification and then that advice is considered by council in making its decision about whether to refer to the Department of Planning.
The Department of Planning gives a gateway determination after which the proposal can be placed on public exhibition. Public hearings must also be held. A further report is then prepared for council. It then makes a final recommendation to the Department which is required to sign off on the reclassification.
If reclassified to operational land some of the sites will be sold but others may be subject to long-term lease arrangements.
“There is a logic on each one of those about why you would lease or sell. Each one of those are facilities that would be available to the community,” Mr Farmer said.
“Each of these has a narrative, we could own that but why would you own it?
“This process is just to reclassify. There is a separate decision after that about whether or not or how council wants to deal with this [operational] land,” Mr Farmer said.
What you can do
Read the staff report
Register to speak at the community forum
Write a submission – keep an eye on the Your Voice Our Coast website for the exhibition to commence
Attend the LPP – visit The Point for updates
Attend the public hearing – visit The Point for updates
