Proposed Acquisition of Part of Sydney Water Sewerage Treatment by kvr14641


									Ordinary Meeting of Council
2 March 2010                                                                                    Page 5

                                                                                        REF: CM18/10

Report of Manager Property and Recreation (WD) 9/02/10    PR57379

                                                                                                          ITEM 3
Sydney Water Corporation are in the final stages of decommissioning the majority of its
Bellambi Sewerage Treatment Plant and has offered to transfer approximately 8 ha of this land to
Wollongong City Council. The land transfer is based on Council providing future credit to Sydney
Water for land acquisitions and easements to the value of the land acquired by Council. The
acquisition of this land will enable Council to improve public access and establish a linkage along the

This report outlines details of the proposal and seeks Council’s authority to enter into a contract to
facilitate this transfer.

1     The information be noted.
2     Council commence a Community Engagement Program to inform the community and seek
      input into the future use of the site.
3     At the conclusion of negotiations, a further report be submitted to Council outlining details of
      the proposed acquisition and the results of the Community Engagement Program.

The Illawarra Waste Water Strategy provides for the diversion of sewerage from Bellambi and
Port Kembla Treatment Plants to the Wollongong Sewerage Treatment Plant (WSTP) to assist in
long term improvements to the cleanliness of Wollongong beaches. Following the upgrading of the
WSTP, SWC commenced the process of decommissioning the Bellambi Sewerage Treatment Plant
from a primary treatment plant to a pumping station and storm overflow treatment plant and are in
the process of completing site remediation to ensure that this site is suitable for passive recreation

As a consequence of this decommissioning, approximately 8 ha of land will be surplus to SWC
requirements and this land has been offered to Council for addition to the existing public open
space at Bellambi Point. Council has an opportunity to acquire a large portion of foreshore land
which links to Council’s existing holdings and the Northern Cycleway. This is a strategically
important parcel which has potentially important environmental and recreation value.

At the time of commencement of negotiations, an additional area comprising approximately
6000 sq m, not originally included in the land proposed to be transferred, was identified as being
suitable for the purpose of providing better public access along the dunal front of the site. Sydney
Water has agreed to include this area in the transfer on the condition that the site be accepted in the
condition that it currently lies. This area, whilst not subject to contamination, lies approximately
6 m below the surrounding land and will require filling.

This area is to be filled and levelled by Council to enhance public access. Materials used to fill this
area will be surplus or clean waste excavated materials drawn from Council’s operations over time
and these filling operations will not impact on public access to the remainder of the site.

                                                                               Wollongong City Council
                                                                                   Ordinary Meeting of Council
         Page 6                                                                                     2 March 2010

         Negotiations between Council and SWC are now well advanced on the basis of the following -

         1        The purchase price being determined by independent valuation on the basis of the land being
                  valued for public open space recreation only;

         2        The purchase price being offset against a line of credit in favour of SWC. This line of credit
                  will be used to offset compensation that would otherwise be payable to Council where SWC
                  propose to acquire either land or easements on land owned by Council. This credit will be
                  formalised in a Draw Down Deed to be attached to the contract for sale and registered as a
                  caveat on title;

         3        The line of credit expiring in 25 years and any unused credit remaining at that time shall be
                  written off by SWC and consequently Council’s liability extinguished;

         4        SWC being responsible for:
                  a)    All costs in the remediation of the site and providing Council with independent
                        certification that the site is fit for the purpose of open space recreation; and
                  b)    All costs associated with the subdivision of Lot 2 DP 615377.

         5        The site being classified by Council as Community land upon acquisition; and

         6        Council offering no objection to SWC acquiring a Right of Way from Robert Cram Drive as
                  shown on Attachment 1 and compensation for this ROW being offset against the
                  compensation for the acquisition of proposed Lot 1.

         The acquisition of this site will significantly increase the amount of public open space at
         Bellambi Point and presents an opportunity for Council to expand and enhance both passive and
         active recreational opportunities at this significant location. It is therefore proposed that a
         Community Engagement Program be undertaken as a matter of priority to inform the community of
         this proposed acquisition and seek input into the future use of this site.

         In the interim, negotiations will continue to finalise details of the proposed acquisition and in regard
         to the purchase price, both Council and SWC have engaged independent valuers and their respective
         advices are in the process of being finalised to enable negotiations to be concluded.

         When agreement is reached on all terms and conditions. a further report will be submitted to
         Council seeking authority to proceed with the acquisition. This report will also outline details of the
         feedback from the Community Engagement Program.

         Negotiations will continue between Council and SWC regarding the terms and conditions of the
         acquisition. A community engagement program will also be established to seek public input into the
         preferred options to return this land to community use and establish foreshore access.

         The current zoning under LEP 1990 is 5 Special Uses and this zone will be reviewed as part of the
         future review of the City Wide LEP which is yet to be gazetted.

         Wollongong City Council
Ordinary Meeting of Council
2 March 2010                                                                                   Page 7

Council acknowledges that parts of the site proposed to be transferred have been contaminated
from past use. The remediation works being undertaken have been specifically designed in
accordance with an Environmental Study to ensure the site is suitably restored and will be certified

                                                                                                         ITEM 3
by the independent auditor. At the completion of the remediation works, a Site Management Plan
will be produced to assist Council in ongoing management of the site.

There are no budget implications in respect to the compensation payable as the purchase price will
be offset by a line of credit in favour of SWC. This line of credit can be used to offset
compensation that otherwise would be payable to Council by SWC for any land or easement
acquisition of Council property over the next 25 years.

In respect to the filling of the 6000 sq m, material costs are expected to be minimal as surplus clean
fill excavated from other Council worksites can be used over the next few years to progressively
raise the area to the required level. The maintenance costs for this land are estimated to be in the
order of $50,000 p.a. This increase in costs will be considered in the preparation of the 2010/2011
maintenance program.

The future acquisition of this land has significant public benefit by increasing the area of public
open space and improving the access to the foreshore land.

  Name                                                Position Title
Wayne Douglass                            Property Services Manager
Authorised by:
Peter Coyte                               Manager Property & Recreation
Peter Kofod                               Director Infrastructure & Works
David Farmer                              General Manager

1. Site plan showing land proposed to be acquired
2. Aerial site plan

                                                                              Wollongong City Council
Page 8                    ATTACHMENT 1 - Site plan showing land proposed to be acquired

Wollongong City Council
ATTACHMENT 2 - Aerial site plan                             Page 9

                                  Wollongong City Council

To top