TABLE OF CONTENTS
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4.2. .. (Sub
5. LEGISLATIVE AND STRATEGIC CONTEXT
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6.1. ... Social
Council from time to time
acquire s and dispose s of
its land assets. Council has obligations
under a range of legislation and
policy has been developed in order to provide the framework for a transparent
process that adheres to the relevant legislation.
main objectives of this policy are to –
that Byron Shire Council has open and accountable
consider the acquisition and disposal of land assets.
Ensure best value is achieved in Council land
2. Establish the criteria under which Council will
consider acquisition and sale of land and easements.
This policy applies to all acquisition and
disposal of Council lands, includ
interests in land.
Council (as custodian of public assets)
acquires and disposes of all property interests in open market format to ensure due
probity of process and optimal financial return (and minimal risk). All
dealings in Council land can only be achieved through a resolution of Council.
· Local Government Act 1993
· Valuation of Land Act 1916
· Real Property Act 1900
· Land Acquisition (Just
Terms Compensation) Act 1991
· Roads Act 1993
· Environmental Planning and
Assessment Act 1979
Commission Against Corruption, Guidelines for managing risks in direct negotiation, May 2006
Local Government, Land Acquisition Information
Section 186 of the Local Government Act
prescribes what purposes Council can acquire land for
, as follows:
council may acquire land (including an interest in land) for the purpose of
exercising any of its functions.
limiting subsection (1), a council may acquire:
that is to be made available for any public purpose for which it is reserved or
zoned under an environmental planning
land which forms part of,
or adjoins or lies in the vicinity of, other land proposed to be acquired under
Properties are identified taking
into consideration the purpose for which they need to be acquired, the
of such properties and the value that such properties have to the community.
properties are listed for sale on the open market,
council officers negotiate the terms of purchase
with either the vendor or the vendor’s agent.
Where properties are
not listed on the open market, Council officers arrange a valuation report as a
for negotiation and the valuation report be
attached to the report submitted to Council, as required .
For all land and easement acquisitions for
properties not listed on the open market, the acquisition must
be undertaken in strict
accordance with the Land Acquisition
(Just Terms Compensation) Act 1991.
compulsorily acquire land is granted under the Roads Act 1993 or the Local
Government Act 1993.
Any negotiations be
on the basis that a formal offer cannot be made until Council has considered a
purchase of the property.
the event of a formal valuation being obtained, this be used as a guide in any
report to Council.
At the time of acquisition, Council must resolve
the classification of the land to be either Operational or Community land.
1 Council Resolution
The acquisition of land cannot be delegated and, as
required by the Local Government Act 1993, must be effected by a resolution of Council.
Council must resolve
what the classification of the land will be (either Community or Operational)
at the time of resolving to acquire the land or in accordance with Sec 31 Local
Government Act 1993. The default classification
3 Method of negotiation
Where a property is placed for sale on the open market,
Council can negotiate the purchase price and terms of acquisition to achieve the best
possible commercial value.
acquisitions must be negotiated having regard to the provisions of the Land Acquisition (Just Terms
Acquisition) Act 1991.
Where land (including surplus areas of public road) is capable of
being sold on the open market and able to be developed
independently of any other property, the sale shall be by competitive process
involving public auction, tender or
expression of interest unless circumstances warrant sale by Direct Negotiation
as set out below.
For public auction,
the General Manager will set the reserve price based on a recommendation of an
can dispose of land by Direct Negotiation under the following circumstances
1 Where the total cost of
the public sale process will exceed the expected community benefit. For example, where the land is worth $1,000
and the cost to market the land is $5,000.
there is only one identifiable purchaser. For
example, where a site is not large enough for development in its own
right (including a portion of road reserve) and is surrounded by public roads
on all sides other than the adjoining owner.
Where a site adjoins two owners such as laneways, they will each be offered 50%.
3 Where Council is bound
by a contractual obligation. For example, a tenant with a first right of refusal, where that
tenancy has been entered into as a result of public competition.
4 Disposal of land to a government or
utility authority for the purpose of infrastructure provision.
5 Where a public marketing process which
has been undertaken within the last 12 months in accordance with this policy has failed to achieve the desired outcome.
6 In response to a proposal which achieves specific policy goals of
exclusion aims to allow Council to respond to an approach for
the development of a unique project. Any such proposal must comprise a concept plan and description of the
project and clear demonstration of the achievement of specific policy and strategic goals and objectives of Council,
The report to Council covering these sales will identify the reasons
why this sale process was chosen.
Land and buildings are to be tested against a number of
criteria to determine whether the property is retained and developed for community use or
developed or sold to realise its commercial potential.
seven (7) criteria contained in the assessment are:
1 Statutory influences (restrictions or
limitations) – are there
statutory reasons for the Council ownership of the property? This will
extend to actual or implied trusts that have been established as a result of
Council’s acquisition of the land.
2 Existing usage – Is the
land used or likely to be used to meet operational, community or recreational
3 Potential future use – is the
land or road likely to be required for Council’s operational needs.
4 Spatial distribution –
are there adequate-like facilities and opportunity to meet
future needs in the area and serving
the local community?
5 Conservation value – does the
land or road have cultural, natural or heritage value that should be
6 Site constraints and opportunities – in
addition to conservation value are there other site constraints which may extend to [but not restricted to] flood
liability, land slip, mine subsidence or other physical impairment?
7 Maintenance issues – what maintenance requirement does
Council have for the land?