Inside the report behind Nambour car park sale proposal
The carpark, as seen from Sydney Street.
A detailed council report recommending the sale of a central Nambour car park for affordable housing lays out the rationale behind council’s thinking.
The report, see below, was to be considered at today’s Sunshine Coast Council meeting.
However Sunshine Coast Council yesterday deferred the decision on the proposed sale for eight weeks following strong community opposition and concerns over a lack of consultation.
The community was given only days notice of the proposal to sell the carpark.
Under the current recommendation, council would sell the land at market value, with a contract condition requiring it be used for social and affordable housing.
The report also outlines the legal mechanism to allow the sale to proceed without a public tender, using an exception under the Local Government Regulation 2012 for transactions involving community organisations.
Importantly, the report confirms no formal community consultation had been undertaken in relation to the proposed sale. Councillor consultation included Div 10 Councillor David Law and fellow Strong Community Portfolio Councillor Taylor Bunnag.
Council officers state there are “no foreseen risks” associated with the transaction and argue the project would support broader economic activity by increasing residential development within the town centre.
Cr Law posted the following yesterday on Facebook: “Following discussions with I am Nambour, Nambour Chamber of Commerce and Queen Street Traders, plus many phone conversations with business owners and locals, I can confirm that the Sale of Land in Nambour, at Sydney Street has been withdrawn from the Council meeting tomorrow.
I am pleased that this proposal is now in the public domain and I am able to discuss it with you and collect your feedback. I have heard clearly that the parking need is the greatest concern for the town centre. I also hear agreement that there needs to be more affordable housing for essential workers. We can now have more informed conversations about this proposal to make sure that the best outcome can be achieved.”
The report is published in full here:
PURPOSE
The purpose of this report is to seek a Council Resolution to apply an exception under section 236(1)(b)(ii) of the Local Government Regulation 2012 for the sale of Council owned land located at Howard Street in Nambour to a community organisation, being Coast2Bay Housing Group Limited (Coast2Bay).
EXECUTIVE SUMMARY
In response to the challenges of the current housing crisis on the Sunshine Coast, Council has endorsed the Housing and Homelessness Action Plan. The Housing and Homelessness Action Plan contains a range of actions, the first of which relates to the delivery of affordable housing products. This includes the identification of suitable land and/or buildings. Lots 23 & 40 on RP27869 and Lot 2 on RP56489 located at 46-62 Howard Street, Nambour (Property) has been identified as a suitable site. Council has previously explored a proposal to deliver affordable and key worker housing on this site, collaborating with Coast2Bay on a number of occasions to progress the proposal. Each time, funding constraints have resulted in the proposal not being progressed.
As an independent community housing provider, Coast2Bay are well positioned to pursue the development of social and affordable housing on this site. Therefore, it is recommended that Council dispose of the land to Coast2Bay with a contract stipulation that the site be used for the delivery of social and affordable housing products. In addition, Council has signed a Memorandum of Understanding with Coast2Bay to facilitate and support the successful delivery of the housing projects in the region.
The Local Government Regulation 2012 provides that a disposal, other than by tender or auction, may occur if an exception applies. Section 236(1)(b)(ii) provides for an exception if the disposal is to a community organisation, in this case Coast2Bay Housing Group Ltd. The sale of the Property must comply with section 236(4), requiring the consideration for the disposal to be equal to, or more than, the market value of the land as determined by an independent registered valuer.
Details of the valuation and proposed sale terms are included in Confidential Attachment 1. In preparing this report, the Chief Executive Officer recommends that Confidential Attachment 1 be considered confidential in accordance with section 254J(3)(g) of the Local Government Regulation 2012 as it contains information in relation to a commercial matter involving the local government for which a public discussion would likely prejudice the interests of the local government and impact adversely on the finalisation of a current commercial negotiation process, and recognising that, until Council makes a decision and settlement of the contract has occurred, the sale of the Property has no certainty.
This report also recommends to publicly release details in relation to the contract price, once the transfer of ownership of land has registered with Titles Queensland.
OFFICER RECOMMENDATION
That Council:
(a) receive and note the report titled “Sale of Land in Nambour”
(b) resolve pursuant to section 236(2) of the Local Government Regulation 2012, that an exception in accordance with section 236(1)(b)(ii) be applied to dispose of Lots 23 and 40 on RP27869 and Lot 2 on RP56489, other than by tender or auction, to a community organisation, being Coast2Bay Housing Group Limited and
(c) authorise the Chief Executive Officer to publicly release details relating to the contract price once the transfer of land ownership has registered with Titles Queensland.
FINANCE AND RESOURCING
The sale of the Property must comply with section 236(4), requiring the consideration for the disposal to be equal to, or more than, the market value of the land as determined by an independent registered valuer. Therefore, an independent market valuation of the property has been undertaken by Heron Todd White. Details of the valuation are included in Confidential Attachment 1.
Costs associated with the sale of the Property include valuation fees and conveyancing.
CORPORATE PLAN
Corporate Plan Goal: Strong community
Strategic Pathway: 1.2 - Vibrant communities
Operational Activity: 1.2.7 - Deliver prioritised projects that achieve affordable housing outcomes as outlined in the Sunshine Coast Housing and Homelessness Action Plan 2023.
CONSULTATION
Councillor Consultation
· Councillor D Law – Division 10 & Strong Community Portfolio Councillor
· Councillor T Bunnag – Strong Community Portfolio Councillor
Internal Consultation
· Chief Financial Officer, Finance & Commercial Partnerships
· Head of Property, Finance & Commercial Partnerships
· Properties Lawyer, Finance and Commercial Partnerships
· Director Sustainable Growth and Planning
· Manager Urban Growth Projects, Sustainable Growth and Planning
· Manager Community Development, Community Strengthening
External Consultation
Council engaged an independent and registered valuer from Herron Todd White to determine the market value of the land. Council also engaged Pacific Law to prepare the contract and undertake conveyancing.
Community Engagement
No formal community consultation has been undertaken in relation to this report.
PROPOSAL
Council’s Housing and Homelessness Action Plan includes an action relating to the identification of suitable land and/or buildings for the delivery of affordable housing products. In response to the identified action, Council’s proposal is to sell the Property (refer Figure 1. and 2.below) comprising a total area of 2627m², to Coast2Bay, at market value, to enable Coast2Bay to deliver a residential multi-storey development. It is expected that the project could deliver the supply of affordable housing for low-income households including key workers with an element of social housing. Figure 1. 46-62 Howard Street, Nambour
Figure 2. Locality Map
The transfer of land by sale to Coast2Bay will enable Council to deliver on its identified action in the endorsed Housing and Homelessness Action Plan and ensure residential development within the town centre of Nambour to support commercial and retail enterprises at this location.
Background
Coast2Bay and Council have been working collaboratively to secure affordable housing outcomes on the Property since 2008. In February 2009, Council provided ‘in-principle’ support for further investigations by Coast2Bay for the development of a mixed-use development incorporating residential use on the Property. This proposal did not proceed due to funding constraints. In May 2016, Coast2Bay progressed another proposal on the Property for residential development, which was unable to proceed again due to funding constraints.
In 2023, Council attempted to progress the delivery of affordable housing outcomes again on the Property with support from Coast2Bay. The initial proposal was for 57 residential units, a small commercial space and car parking. The project progressed to a detailed proposal stage and contract negotiations commenced with delivery partners.
The design was amended to remove the commercial space and instead provide a small administration and community room for use by residents, with the number of residential units increasing to 65 units and the residential dwelling mix amended to deliver 12 one-bed units and 53 two-bed units. The amended design facilitated an improved value proposition, however, the project was paused again due to funding constraints.
Coast2Bay have recently contacted Council again seeking a partnership to deliver affordable housing outcomes on the Property, this time on the basis that Coast2Bay acquire the land from Council in order to pursue the delivery of affordable housing outcomes.
Coast2Bay are committed to delivering the affordable housing outcomes on the site, which will provide a much needed supply of social and affordable housing in Nambour. The project will also provide tenancy pathway planning opportunities for their existing tenants that are economically active and for those in aged assets that are suited to redevelopment and revitalisation.
Coast2Bay have advised that the existing scheme consisting of 65 units is largely suitable to pursue State Government funding. Minor amendments to the design will be made to bring it in line with height limits defined in the current planning scheme and to increase the level of accessibility for some units, with a target of 50% minimum Liveable Housing Australia Gold standard product. The incumbent architect Hollindale Mainwaring will be appointed by Coast2Bay to continue the design development ahead of a code assessable development application being lodged with Council in due course.
Coast2Bay intend to use the project mostly for affordable housing, targeted at low and moderate income households, including key workers and single parent families. People local to the Nambour area will receive first priority allocation for the affordable housing units. A portion of the units will also be used for social housing.
The inclusion of both social and affordable housing is important to support a healthy housing system and allow opportunities for existing tenants in crisis and transitional accommodation to move into long term suitable accommodation. This may include tenants housed through Coast2Bay’s RISE2 program for women and children escaping domestic and family violence and also participants of the Better Together Housing program for women over 55.
Legal
Council’s Legal Services team have been consulted in relation to this report. Pacific Law prepared the relevant Contract for Sale and Purchase of Commercial Real Estate and undertake conveyancing on behalf of Council.
Details of the proposed sale terms are included in Confidential Attachment 1.
Policy
· Sunshine Coast Council’s Housing and Homelessness Action Plan
Risk
There are no foreseen risks associated with the sale of the Property.
Previous Council Resolution
Ordinary Meeting 26 October 2023 (OM23/125)
That Council:
(a) authorise the Chief Executive Officer to finalise detailed applications for affordable housing developments on council owned lands
(b) subject to the application being successful, authorise the Chief Executive Officer to:
i. negotiate and finalise the contract terms as discussed in confidential session
ii. negotiate and finalise the terms of engagement of a housing operator and
(c) authorise the Chief Executive Officer to release information from this report to the public if such information is authorised for release by the State Government at a future date.
Ordinary Meeting 19 May 2016 (OM16/88)
That Council authorise the Chief Executive Officer progress this matter as per the discussion held in confidential session in relation to Coast2Bay Housing.
Ordinary Meeting 10 December 2009 (OM09/381)
That Council:
(a) request the Chief Executive Officer to inform the Sunshine Coast Housing Company of its position in relation to the Howard Street mixed use proposal
(b) request the Chief Executive Officer to negotiate with Queensland Government Department of Communities in order to secure funding for a ‘cost effective’ and
(c) achieved proposal to increase the supply of social housing on the Sunshine Coast.
Ordinary Meeting 19 February 2009 (OM09/054)
That Council:
(a) receive and note the Sunshine Coast Housing Company’s proposed for a mixed use development on the corner of Howard Street and Sydney Street in Nambour
(b) endorse “in principle” support for the further investigation of the Sunshine Coast Housing Company’s proposal for mixed use development incorporating commercial, residential and car parking on the corner of Howard Street and Sydney Street, Nambour
(c) request the Chief Executive Officer to establish an appropriate project team to work with Sunshine Coast Housing Company and the State Government to develop the concept and present recommendations on the proposal for Council’s consideration and
(d) consider a further report on the financial and policy implications for the proposal prior to making a decision on Council’s involvement.
Related Documentation
· Memorandum of Understanding between Coast2Bay and Council 2016 & 2024
· Key Workers in Sunshine Coast Report November 2024
Critical Dates
The property is due to settle prior to the end of Financial Year 2025-26 and key dates are included within Confidential Attachment 1.
Implementation
Should the recommendation be accepted by Council, it is noted that the Chief Executive Officer will delegate the management of the sale of the Property to the Strategic Property team.