Northland’s councils own large areas of land – but why should they?

Is it greed, or is it because they don't know the future and are trying to be risk-averse?
Historically, the reason councils owned land was to help smaller businesses to get better established and then to find better locations for them. Today, when a council offers a 25 year lease now on a property, is that good property management, or are councils solely looking at their back pocket?

In my view, councils should own reserves, parks, roading, and waterways. As for the game of property development, in my view: councils shouldn’t get involved. The risks are too high for ratepayers – who are the shareholders in councils. Councils are already suited to managing many other things in each region. When you learn NRC has $99m in consolidated property, and WDC has $54m of investment property, you’ll be asking yourself just like I have been asking: Why?

WDC owns 28 commercial freehold properties.  These are made up mainly of the Town Basin, CCCP, Parihaka Transmission Mast and freehold interests in Lower Dent, Herekino streets. They also own ‘future use property’ like Blue Goose, and community property like the Old Municipal Building. The commercial freehold properties are made up of multiple leases (i.e the Town Basin is one property with 16 tenancies.)

Have a read over the comprehensive list below…

WDC’s vacant leases:

• ex Kauri Creations and Old NRC at the Town basin,
• 109 Lower Dent (History on wheels)
• 113-115 Lower Dent (ex Call Centre)
• The HnH slipway shed (109 Port Road) is vacant, however the residential unit is being occupied.

WDC owns 82 Leasehold properties. These are made up mainly of lessors’ interest in the following precincts:

• Lower Port Road,
• Fraser, Hewlett Streets,
• Upper Port Road
• Lower Dent,
• Herekino Street.

Council also owns 164 Pensioner units located around the district in 16 different locations. Their portfolio value is $14,765,000.

General Housing is made up of residential units purchased for a future use.  At the moment we have 25 dwellings with a combined value of $4,944,000

Northland Regional Council has 151 properties on its books. Their investment property value [as of the last annual report at 30/6/14) is $50.6m, or $98.9m consolidated (with what?).

Northland regional council has a handful of freehold properties in central Kaitaia, Dargaville and Whangarei plus 120 leasehold investment properties in Whangarei.

Do you think it’s all too much? Should Councils stick to what they’re good at? Post a comment and let’s get the discussion rolling.