Disposal and Acquisition of Property Policy

Status: Open

The policy

The Disposal and Acquisition of Property Policy will partly replace the Assets and Surplus Land Disposal Policy 2017. A separate Asset Disposal Policy will also be developed and presented to Council soon.

The Disposal and Acquisition of Property Policy:

Sets out how the City manages the buying and selling of freehold land
Explains when the City may sell land it owns and when it may need to buy land to meet current and future community needs

The City owns about 1,500 buildings, structures and aquatic facilities worth $790M. These are part of a total asset portfolio of $3.6B.

Many of these assets are ageing, and there is not enough funding to maintain them all. By having fewer assets, the City can spend more money on the buildings it keeps and better meet community needs. This will also help the City buy new assets as community needs change. If this does not happen, more buildings may fall into poor condition because there is not enough money for maintenance. This approach aligns with the Financial Plan 2025–2035 and Asset Plan 2025–2035.

When making decisions about buying or selling property, the City must consider the wider needs of the community. This policy provides a clear framework to guide those decisions.

The Policy covers:

Scope of what the policy applies to
Definitions of terms used throughout the policy
Principles that underpin the policy
Roles and responsibilities of City staff and Councillors involved in decision-making relating to the disposal or acquisition of property

Policy purpose

This policy has been prepared to ensure the City:

Has consistent, transparent and equitable processes in relation to the sale of City owned property, and any new property acquisitions
Complies with legislative requirements and aligns with best practice guidelines when selling or acquiring property
Strategically manages its property portfolio so it is financially sustainable and for the best interests of the community
Achieves best value (both financial and non-financial) in all its property dealings

Principles

The following principles apply for all property sales:

The City must first check that the property is not needed now or in the future. This includes talking with internal City teams.
The community must be consulted in line with the Local Government Act 2020 and the City’s Community Engagement Policy.
Council must decide that the property is no longer needed after considering feedback from the community and affected groups.
The property should be sold at or above its market value. A qualified valuer must assess the value within six months before the sale. The property may be sold for less if there is a clear benefit to the community.
The land should have the right zoning before it is sold.
The City must consider how selling the property could benefit the wider community, such as helping areas with fewer services or facilities or extenuating circumstances such as a small parcel adjoining a larger lot.
The sale should support the local economy or encourage investment.