TOWN
PLANNING SCHEME NO 4A
BUSINESS
PLAN
1
JULY 2000
to
30
JUNE 2005
INTRODUCTORY
STATEMENT
The new Local Government Act came into
force on 1 July 1996. The new Act requires
all Local Governments to prepare a business plan prior to commencing a major
trading undertaking or entering into a major land transaction. (Section 3.59).
The Act prescribes that the business plan
is to include details of:
(a) its expected effect on the
provision of facilities and services by the local government;
(b) its expected effect on other
persons providing facilities and services in the district;
(c) its expected financial effect on
the local government;
(d) its expected effect on matters
referred to in the Town of Bassendean Principal Activity Plan; and
(e) the ability of the local
government to manage the undertaking or the performance of the transaction.
The information contained in the following
business plan satisfies the requirements of the Act listed above. Members of the public are encouraged to make
submissions on Council’s proposal at any time up until the close of business on
Monday, 17 September 2001.
Mr Graeme Mackenzie
Chief Executive Officer
CONTENTS
1.0 PROJECT
BACKGROUND AND HISTORY
2.0 THE
EXPECTED EFFECT ON THE PROVISION OF FACILITIES AND SERVICES
3.0 THE
EXPECTED EFFECT ON OTHER PERSONS PROVIDING FACILITIES AND SERVICES
4.0 THE
EXPECTED FINANCIAL EFFECT ON THE TOWN OF BASSENDEAN
5.0 THE
EXPECTED EFFECT ON THE TOWN OF BASSENDEAN’S FORWARD PLAN
6.0 THE
ABILITY OF THE TOWN OF BASSENDEAN TO MANAGE THE UNDERTAKING
APPENDICES
Anticipated Income and Expenditure
2000 – 2005.
The Chief Executive Officer’s
report to the Finance & General Services Committee Meeting of 15 December
1998, dealing with the consolidated financial position of the Scheme, is
attached to this document.
The Town of Bassendean, is committed to
fulfilling its obligations to the Town Planning Scheme No 4A over a five year
period, and to this end has prepared this Business Plan (the Plan) as required
by the Local Government Act 1995.
It is estimated that Council’s total
commitments to the Scheme will cost in the order of $694,670, which will be
funded primarily by the sale of land zoned for residential purposes and owned
by Council. This land has an estimated
value of $1,357,000.
Overall, it is anticipated that the
implementation of the Plan will generate an income beyond expenditure of
approximately $753,250.
Town Planning
Scheme 4A (the Scheme) is a guided resumptive development scheme relating to
Ashfield Flats, Bindaring/Pickering Park and a number of smaller areas in the
Town of Bassendean.
The Scheme has
been operating since 20 January 1981 and has recently been reviewed which has
lead to Council undertaking a major amendment to the Scheme, Amendment No 16,
which became operational on the 6 February 2001.
The Scheme has
two major functions:
The Scheme
divides the areas into 5 distinct categories as shown below:
Area A The
Scheme gives Council the power to acquire land within the area and to subdivide
the land in accordance with the Scheme Map.
Council has never used this clause and instead owners, as allowed for by
the Scheme, have developed the land.
Area B The
Scheme gives the Council power to resume or otherwise acquire the land within
Area B for open space purposes.
Area C Land
owners within Area C may develop their land for housing but are required to pay
a Unit Development Contribution which is used towards the costs of the Scheme,
including the acquisition of open space in the area.
Area D Land
within Area D was acquired and developed by Council prior to the Scheme
becoming operational. The net proceeds
of the sale of the land and the development costs have been added to the
Scheme.
Area E The
land within Area E is reserved by the Western Australian Planning Commission
for Parks and Recreation, under the Metropolitan Region Scheme. The acquisition of land within this area is
the responsibility of the Commission rather than Council.
Council is
committed to completing its commitments to the Scheme over the next five years,
and as part of this commitment, has prepared this Business Plan (the Plan)
which shows the likely expenditure and income from the Scheme over that period.
The Plan has been
prepared to assist Council to meet its commitments to the Scheme and also to
advise the general community on how these commitments will be achieved.
At the end of the
day, Council will acquire land for public open space, will sell land to fund
this, and will also provide some infrastructure within the Scheme Area.
Council will have
more land in the form of parks and will have more infrastructure to
maintain. Provision will need to be
made within annual budgets in terms of recurrent expenditure to maintain these
facilities.
The only external impact of this undertaking identified is that of land
supply. By and large, large-scale subdivision
does not occur within the Town of Bassendean.
Whilst there are a number of housing lots available within the Town, some
of which are owned by Council, it is considered that selling the number of
residential lots as proposed by this Plan will not have a negative effect on
other persons selling land.
Indeed, Council’s sale of this land will increase housing choice within
the Town.
The financial summary forming part of this document has costed Council’s
likely expenditure and income towards the implementation of Town Planning
Scheme No 4A.
The five-year period referred to in the Plan, includes the current
financial year for two reasons.
Firstly, to capture expenditure that has occurred up to this point as
part of Council’s commitment to the Scheme, and secondly, in the interests of
transparency.
The effect of this will be that Council will need to meet its commitments
to the Scheme over the next four rather than five years.
The Plan attempts to identify all expenditure and income that is likely
to be generated by the Scheme, and this is discussed in more detail below.
LAND AQUISITION
Council is committed to resuming or acquiring the following properties:
Lot 278 Hamilton Street
Lot 280 Hamilton Street
Lot 211 Carnegie Street
Pt Lot 206 Hyland Street
Pt Lot 130 Anstey Road
Pt Lot 113 Harcourt Street
In addition,
Council has acquired Part Lot 10 Hyland Street during the current financial
year.
Council has had each of the above properties independently valued, which
will result in a total expenditure of $520,500 over the life of the Plan in
terms of land acquisitions.
The valuation for Lot 206 Hyland Street relates to the whole land rather
than the portion zoned for open space.
This has been done to give the owner a certain amount of
flexibility. Council may not use Scheme
funds to purchase the additional land and therefore an allowance is made by way
of a Council contribution under potential income to the Scheme.
Whilst $21,500 has been expended in the current year, the remainder is
planned to be spent over the period 2002-2004, with the maximum expenditure
occurring in 2001/2002, with expenditure of $ 280,000.
An allowance has also been made to obtain up-to-date valuations and for
costs associated with the purchase of the land.
SCHEME WORKS
Council is committed to carrying out the following Scheme Works:
Extension of Harcourt Street
Construction of footway - Hatton Court to Bridson Street
Construction of footways adjoining Lots 663 and 3 Hardy Road
Acquisition of a portion of Lots 5, 6 & 7 Kenny Street &
construction of portion Hatton Court
Acquisition of part Lot 103 Kenny Street to take account of the current
road alignment
Council’s commitments to the Scheme in terms of Scheme Works have been
costed at $106,000. Of this figure,
$22,500 has been spent in the extension of Hatton Court during the last
financial year.
In terms of the extension of Harcourt Street, the original Scheme showed
access to the lots on the northern side of the street, that is, Lots 81 and 82
Harcourt Street being served off an access place from Carnegie Street to the
west.
As part of Amendment No 16 to the Scheme, this accessway was
deleted. The Amendment did canvass the
extension of Harcourt Street to provide access to the above properties. The community heavily rejected the concept
of extending Harcourt Street through a bituminised road. The Scheme Map was not altered to show this
access however, and it is not intended that the road reserve be closed. Therefore, the Plan includes a brick paved
accessway to serve the above lots forming an extension to Harcourt Street.
Whilst an amount of $45,000 is included to cover the cost of the brick
paved accessway, it is by no means certain that the money will be spent in this
way as Council is committed to finding alternative ways of accessing those
lots, as expressed through Amendment No 16 to the Scheme.
INCOME FROM SALE OF LAND
Council owns the following land that is available for sale:
Lot 271 Hamilton Street (a)
Lot 271 Hamilton Street (b)
Lot 271 Hamilton Street (c)
Lot 162 Anstey Road
Lot 163 Anstey Road
Lot 100 Reid Street
Lot 101 Iveson Place
Lot 103 Iveson Place
Lot 104 Iveson Place
Lot 113 Iveson Place
Part Lot 202 & Part Lot 203 Hyland Street
The value of land in Council’s ownership, which may be made available for
development, has been assessed at $1,357,000.
The Plan indicates that all the land with the exception of part Lots 202
& 203 Hyland Street will be sold during the years 2001-2002.
With respect to part lots 202 & 203 Hyland
Street, the Scheme indicates that those lots could be amalgamated with the Pt
Lot 10 and Pt Lot 206 Hyland
Street, to offer a consolidated housing site.
The current owner of Pt Lot 10 has indicated no desire to gain control
of the land in Council ownership, and therefore this land is shown as being
sold in the years 2004/2005. This will
allow any future owner of Pt Lot 10 the option to consider a coordinated
redevelopment of the land in private and Council ownership. However, the income from the sale of the
land should not be relied upon.
It is suggested that Lot 271 Hamilton Street be subdivided into three
lots and an allowance of $24,670 has been made to allow the land to be
subdivided.
UNIT DEVELOPMENT CONTRIBUTION
It is estimated that approximately $43,000 will be generated in unit
development contributions during the life of the Plan. This has been calculated on the estimated
level of building activity within the area, and increases in the unit
development contribution set by the Town Planning Scheme.
CONCLUSION
A surplus of approximately $750,000 will be generated over the life of
the Plan.
It has therefore been demonstrated that implementation of the Plan will
not have a negative effect on the Town of Bassendean.
It should be noted, however, that overall the Scheme is in deficit by
somewhere close to $160,000*, depending on the value attributed to recreation
land previously acquired by the Scheme.
It is considered that the surplus funds generated over the next five
years, should ultimately be retained by Council for use generally within the
Town. In defence of this position, the
implementation of the Scheme to date has generally fallen on ratepayers of the
Town.
(* A copy of the Chief Executive Officer’s report to the Finance &
General Services Committee Meeting of 15 December 1998 dealing with the
consolidated financial position of the Scheme is attached to this Plan as an
appendix.)
This Business Plan
demonstrates that over the period of the Plan, Council’s total income less its
Total expenditure is likely to be in the order of $750,000. Council’s current draft Principal Activity
Plan indicates that Council’s involvement in the Scheme will be cost neutral.
Therefore it is
concluded that the implementation of the Business Plan can only have a positive
effect on Council’s Forward Plan.
It is considered that the implementation of
the Plan will not be onerous over the period proposed.
Council’s Chief Executive Officer, Director Infrastructure
Services and the Manager Development Services as appropriate will implement the
Plan.
Council will continue to use external
expertise in terms of skills not available within Council, such as surveyors,
valuers, settlement agents and solicitors.
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TOWN PLANNING SCHEME 4A BUSINESS
PLAN - JUNE 2001 TO JUNE 2005 |
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YEAR 1 |
YEAR 2 |
YEAR 3 |
YEAR 4 |
YEAR 5 |
TOTAL |
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2000/2001 |
2001/2002 |
2002/2003 |
2003/2004 |
2004/2005 |
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Land Acquisition |
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Lot 278 Hamilton Street |
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Lot 280 Hamilton Street |
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Lot 211 Carnegie Street |
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Pt Lot 206 Hyland Street |
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Pt Lot 130 Anstey Road |
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Pt Lot 113 Harcourt Street |
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Pt Lot 10 Hyland Street |
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TOTAL LAND ACQUISITION |
(21,500) |
(280,000) |
(117,000) |
(102,000) |
- |
(520,500) |
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TOTAL VALUATIONS |
(4,500) |
(3,000) |
(3,000) |
(3,000) |
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(13,500) |
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Scheme Works |
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Extension of Harcourt Street |
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(45,000) |
(45,000) |
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Construction of footway - Hatton Court
to Bridson Street |
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(13,000) |
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(13,000) |
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Construction of footways adjoining Lots
663 and 3 Hardy Road |
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(18,000) |
(18,000) |
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Acquisition of a portion of Lots 5, 6
& 7 Kenny Street & construction of portion Hatton Court |
(22,500) |
(2,500) |
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(25,000) |
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Acquisition of part Lot 103 Kenny Street |
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(5,000) |
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(5,000) |
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TOTAL SCHEME WORKS |
(22,500) |
(2,500) |
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(18,000) |
(63,000) |
(106,000) |
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Works Required Prior to Lot 271 Hamilton
Street |
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Subdivision Lot 271 Hamilton Street |
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(1,170) |
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(1,170) |
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Connection to Sewer - Lot 271 Hamilton
Street |
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(18,500) |
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(18,500) |
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Survey and legal costs |
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(5,000) |
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(5,000) |
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TOTAL WORKS - LOT 271 HAMILTON STREET |
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(24,670) |
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(24,670) |
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Incidental Costs |
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Sale and Settlement Fees |
(5,000) |
(5,000) |
(5,000) |
(5,000) |
(5,000) |
(25,000) |
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Legal Costs |
(1,000) |
(1,000) |
(1,000) |
(1,000) |
(1,000) |
(5,000) |
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TOTAL INCIDENTAL COSTS |
(6,000) |
(6,000) |
(6,000) |
(6,000) |
(6,000) |
(30,000) |
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TOTAL EXPENDITURE |
(54,500) |
(316,170) |
(171,000) |
(129,000) |
(24,000) |
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(694,670) |
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Income - Sale of Land |
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Lot 271 Hamilton Street (a) |
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Lot 271 Hamilton Street (b) |
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Lot 271 Hamilton Street (c) |
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Lot 162 Anstey Road |
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Lot 163 Anstey Road |
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Lot 100 Reid Street |
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Lot 101 Iveson Place |
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Lot 103 Iveson Place |
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lot 104 Iveson Place |
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Lot 113 Iveson place |
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Part Lot 202 & 203 Hyland Street |
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TOTAL INCOME - SALE OF LAND |
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1,355,000 |
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2,000 |
1,357,000 |
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Other Income |
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Unit Development Contribution |
7,960 |
5,980 |
7,980 |
9,600 |
12,400 |
43,920 |
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Council contribution to Acquisition of Pt
Lot 206 Hyland Street |
47,000 |
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47,000 |
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TOTAL OTHER INCOME |
7,960 |
5,980 |
54,980 |
9,600 |
12,400 |
90,920 |
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TOTAL INCOME |
7,960 |
1,360,980 |
54,980 |
9,600 |
14,400 |
1,445,920 |
1,447,920 |
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TOTAL INCOME LESS TOTAL EXPENDITURE |
(46,540) |
1,044,810 |
(116,020) |
(119,400) |
(9,600) |
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753,250 |