Late Reports Agenda of Vincent Community Board

3 December 2024

5 Reports

24.11.12 Level of Service - Vincent Community Buildings

Doc ID: 1990847

Report Author:	Janice Remnant, Asset Management Team Leader - Property
Reviewed and authorised by:	Lee Webster, Acting Group Manager - Planning and Infrastructure

1. Purpose of Report

To consider the level of service for Vincent community buildings as part of the Long-Term Plan 2025/34 process.

Recommendations

That the Vincent Community Board

A. Receives the report and accepts the level of significance.

B. Recommends to Council that the following buildings are retained as budgeted in the draft Long-Term Plan 2025/34:

· Alexandra Community Centre

· Molyneux Stadium

· Central Stories Building

C. Recommends to Council that the following buildings are considered for divestment as part of the draft Long-Term Plan 2025/34 consultation document:

· Ophir Hall

· Poolburn Hall

· Becks Hall

· Clyde Hall

· Vallance Cottage

· Former Riding for the Disabled Building

· Clyde Police Lock Up

· Clyde Railway Station Building

· Clyde Briar and Herb Museum Site

· Blyth Street Museum

2. Background

The Vincent ward is home to a variety of community halls and facilities, each rich in history and integral to local identity.

Changes in community mobility, evolving building standards, and financial constraints have created a need for careful evaluation of these facilities. Balancing community use, regulatory compliance, and responsible management of funds is essential to ensure these buildings continue to serve their purpose effectively.

To address this, a Level of Service Review has been undertaken, providing an assessment of each facility. This includes an evaluation of the legal and operational status, ongoing maintenance, and their current and potential future roles in the community.

Key factors considered in the review include:

· Proximity to Other Facilities: Analysing the accessibility and convenience of each building relative to others in the district.

· Operational and Capital Costs: Reviewing current costs alongside projected expenses outlined in the draft Long-Term Plan 2025/34 (LTP).

· Income and Usage: Examining booking numbers, income streams, and contributions from rates.

· Earthquake Strengthening: Assessing compliance with seismic risk legislation, with costs estimated at $2.17M for identified earthquake-prone buildings.

Legal and Land Status

The legal status of each property plays a critical role in decisions about retention or divestment. Key considerations include:

· Freehold Properties: Restrictions from historic gifting or acquisition under the Public Works Act may influence the divestment process, necessitating further investigation.

· Reserve Land: Properties on reserve land would revert to the Crown (LINZ) upon divestment, with Ngāi Tahu holding the first right of refusal under the Ngāi Tahu Claims Settlement Act 1998.

· Council-Owned Earthquake-Prone Buildings: The Government's ongoing review of seismic risk legislation will influence compliance deadlines, with the Council prioritising essential emergency management buildings at 67% NBS and others at a minimum of 34% NBS.

Funding Opportunities

Securing funding for earthquake strengthening is a challenge, particularly for Council-owned properties. However, there are potential avenues for private owners or community groups which include:

· Lotteries New Zealand: Funding is contingent on high community use, multipurpose functionality, and a feasibility study demonstrating need and viability.

· Central Lakes Trust (CLT): While supportive of seismic strengthening, CLT excludes Council-owned buildings from eligibility.

· Otago Community Trust (OCT) & Aotearoa Gaming Trust: Neither organization provides funding for earthquake strengthening.

· Public-Private Partnerships: Collaboration with local businesses or community groups could support strategically important buildings.

· Community Contributions: Fundraising efforts or targeted rate increases could help finance specific projects.

· Revenue from Divestments: Proceeds from the sale of surplus buildings could offset strengthening and renewal costs for retained properties.

This approach ensures that decisions about Vincent museums, community halls and facilities are informed, equitable, and aligned with the long-term needs and priorities of the community.

3. Discussion

A detailed assessment of Vincent’s facilities has been undertaken, guided by the following criteria:

· Legal status of the property.

· Proximity to other facilities and main service towns.

· Utilisation (e.g., booking numbers and income over the last five years).

· Operational costs (2023/2024 and projections for in the draft LTP 2025/34).

· Capital costs, including earthquake strengthening requirements and timelines.

The outcomes of this assessment are crucial for ensuring Vincent’s museum’s, community halls and facilities meet modern requirements, respect their historical significance, and remain affordable for the community.

Where divestment is recommended, this could mean a community group acquiring the building to maintain the on-going operational maintenance or earthquake strengthening of the building as an alternative of ratepayers, which would follow the conclusion of the LTP process.

This analysis underpins recommendations on whether individual facilities should be retained, divested, or strengthened.

Alexandra Community Centre

Attribute	Details
Purpose	Strategic multi-purpose community facility
Usage	· Includes 350-seat theatre, hall, commercial kitchen and lounge · High use by wide section of the community and private/commercial events · The lounge and kitchen areas are leased by the Alexandra Senior Citizens but are also available for public bookings · Civil Defence Centre
Legal Status	Fee simple on reserve land
Condition	Not earthquake prone
Recommendation	Retain as a critical community hub due to its multifunctional spaces, high use and civil defence capability

Central Stories Building

Attribute	Details
Purpose	Strategic multi-purpose community facility
Usage	· High level of use by wide section of the community and private/commercial events · High level of use by wide section of community and · Alexandra District Museum Inc lease 68% · Central Cinemas lease 10% · Space that can be commercially tenanted. · Internal access to public toilets
Legal Status	On reserve land, Council owned building
Condition	Not earthquake prone
Recommendation	Retain as a critical community hub due to its multifunctional spaces and high use

Molyneux Stadium

Attribute	Details
Purpose	Multi-purpose community facility
Usage	· High use by various local and regional sports and community groups · Three long-term tenants
Legal Status	Building located on Recreation Reserve
Condition	Earthquake-prone and maintenance required to extend the remaining useful life of the building
Recommendation	Retain as a critical community facility

The Board considered the status of the Molyneux Stadium on 29 October 2024 and resolved to recommend to Council, approval of an estimated $1,200,000 for maintenance and refurbishment/renewal work over nine years in the draft LTP funded from the Board’s reserves.

In addition, the Board recommended Council approve earthquake strengthening, asbestos removal, fire safety and accessibility compliance work to proceed in year 2027/28 of the draft LTP at an estimated costs of $4,430,000 also funded form the Board’s reserves.

The Board’s reserve balance before these works was $8,344,000 as of 30 June 2024.

Council at their meeting on 27 November 2024 confirmed the recommendation of the Board.

Manuherekia Valley Community Hub

The proposed Manuherekia Valley Community Hub is a collaborative project between Council and the local Manuherekia Valley community lead by the Manuherekia Valley Charitable Trust (MVCT).

The Manuherekia Valley is further defined by the MVCT to include St Bathans, Becks, Lauder, Omakau, Matakanui, Ophir to Chatto Creek along with Moa Creek, Poolburn and Oturehua.

Due to the poor condition of the Omakau Hall, Matakanui Ruby Club rooms and the Omakau Toy Library, a Needs Assessment and Feasibility Study (the Study) for Omakau and Manuherikia Community Spaces was completed for the Omakau community in December 2018. The Study identified the need for a multipurpose facility which was supported by the community and the Board.

The proposal is when funding has been obtained, building construction will start in 2025 and once completed MVCT will lease the building and manage operational costs.

Matakanui Rugby Club and the Omakau Toy Library will move to the new building and the Rugby Club building will be demolished. The area that the vacated Omakau Toy Library occupies will still need further consideration given the Omakau Public toilet block is on the same land parcel.

At the time of this report, an additional report will be presented to the Board for consideration regarding the funding shortfall for the Manuherekia Valley Community Hub.

Ophir Hall

Attribute	Details
Purpose	Community Hall
Location and Proximity	1.7km from the proposed Manuherekia Valley Community Hub.
Usage	· Low usage · Managed by an active hall committee, booking fees return to Council.
Legal Status	Building located on reserve land, subject to Ngāi Tahu Claims Settlement Act.
Condition	Earthquake Prone 30%NBS Capex Cost to strengthen Year 3 (2027/28) $143,799
Recommendation	Divest due to low use and high costs.

A graph with blue and orange lines

Description automatically generated Bookings and Income:

Rates Income and Expenditure:

Income
Rates Portion of Revenue - LTP Yr 1 - 9	159,341
Expenditure
Operational Costs 2023/2024	27,537
Operational Costs LTP Yr 1 - 9	327,826
Capex Costs LTP Yr 1 - 9	39,404

Poolburn Hall

Attribute	Details
Purpose	Community Hall
Location and Proximity	15.3km from the proposed Manuherekia Valley Community Hub.
Usage	· Low usage · Managed by an active hall committee and booking fees return to Council.
Legal Status	Could become freehold, pending de-classifying the land status and obtaining a new title for the property.
Condition	Earthquake prone 15%NBS Capex cost to strengthen Year 3 (2027/28) $377,420
Recommendation	Divest due to low usage and high costs.

Bookings and Income:

A graph with blue and orange lines

Description automatically generated

The following table identifies:

· Contribution from ratepayers over the draft LTP

· Actual operational costs for 2023/2024

Rates Income and Expenditure:

Income
Contribution from ratepayers over the draft LTP	102,560
Expenditure
Operational Costs 2023/2024	59,366
Operational Costs LTP Yr 1 - 9	546,366
Capex Costs LTP Yr 1 - 9	88,204

Becks Hall

Attribute	Details
Purpose	Community Hall
Location and Proximity	16.8km from the proposed Manuherekia Valley Community Hub.
Usage	· Managed by an active Hall committee and booking fees return to Council. · Also used as a community hub for emergencies.
Legal Status	Fee simple but would need to be checked for encumbrances.
Condition	Not earthquake prone
Recommendation	Divest due to low usage and high costs.

Income:

Rates Income and Expenditure:

Income
Rates Portion of Revenue - LTP Yr 1 - 9	174,741
Expenditure
Operational Costs 2023/2024	33330
Operational Costs LTP Yr 1 - 9	455,782
Capex Costs LTP Yr 1 - 9	198,165

Clyde Hall

Attribute	Details
Purpose	Community Hall and Library
Usage	· Clyde Library located in the building operated by Council · Managed by an active hall committee with all booking fees returned to Council. Bookings have increased with the facility upgrades. · The Air Training Cadets and the Clyde Theatre Group are both long-term tenants.
Legal Status	Freehold
Condition	Not earthquake prone
Recommendation	Divest due to high opex and capex costs

Bookings and Income

Income and Expenditure

Income
Rates Portion of Revenue - LTP Yr 1 - 9	537,315
Annual Lease Income	634.75
Expenditure
Operational Costs 2023/2024	49,645
Operational Costs LTP Yr 1 - 9	584,250
Capex Costs LTP Yr 1 - 9	101,565

Vallance Cottage

Attribute	Details
Purpose	Historic cottage built in 1896/97 and reverted to Council in the 1980’s when lease expired. Community restoration in the 1990’s, however recently the building condition has significantly deteriorated.
Usage	· Historic cottage museum · Passionate working group including Vallance family descendants and members such as an archaeologist and a member of Earth Building NZ association.
Legal Status	· Category II NZ Historic Places Trust · On recreation reserve land, subject to the Ngāi Tahu Claims Settlement Act.
Condition	· The cottage is currently closed to the public due to the collapse of the south/west wall. · Although public access is not available $10,000 has been spent to date on repairs, propping, and fencing to ensure safety if someone does gain prohibited access. · The anchor blocks, props and fencing are currently costing $20 per day to hire which will accrue to around $5,000 by 30 June 2025.
Recommendation	Divest due to poor condition of the building and high operational and capex costs.

Rates Income and Expenditure:

Income
Rates deficit - not rate funded. Interest deficit accounted for against income	185,162
Expenditure
Operational Costs 2023/2024	11,897
Operational Costs LTP Yr 1 - 9	208,292
Capex Costs LTP Yr 1 - 9	272,864

Former Riding for the Disabled Building

Attribute	Details
Purpose	Former building utilised for Central Otago Riding for the Disabled (CORDA).
Location and Proximity	Neighbours the Alexandra Golf Club and new subdivision.
Usage	Was leased to the CORDA, now sits vacant.
Legal Status	Building located across two titles on recreation reserve, subject to Ngāi Tahu Claims Settlement Act.
Condition	Building vested back to Council. Located on old gun range. Relies on a generator for power supply. Building condition generally poor, not formally assessed
Recommendation	Demolish/divest due to poor condition.

Expenditure:

Expenditure
Operational Costs LTP Yr 1 - 9	10,000
Capex Costs Draft LTP Yr 3 (2027/28) Demolish	55,000

Clyde Museums

On 29 October 2024 following a ‘Notice of Motion”, the Board resolved the following:

· Recommends to Council that the Vincent Community Board supports the retention of the Clyde Blyth Street Museum and Alexandra District Museums Inc. at Central Stories.

· Recommends to Council that retention of the ‘Goods Shed’ is investigated.

· Recommends to Council that the redevelopment of the Clyde Museum be stopped, and funding removed from the 2025-2034 LTP.

· Recommends to Council that Community Boards ability to fund museums not be limited by a resolution of Council.

On 30 October 2024, Council considered their ongoing role in supporting museums across the district. Council’s resolution from this report relating specifically to Vincent Museums were:

E. That the Alexandra Districts Museum Inc continues to operate from Central Stories with funding to come from Council.

F. That the current Blyth Street Museum site is retained on existing terms.

H. Directs staff to explore property options around the Clyde Railway Station Reserve and the museum site in the Cromwell Mall for Council’s consideration.

J. Agrees that the redevelopment of the Clyde Museum be stopped and funding removed from the 2025-34 Long-term Plan.

While the Board and Council resolutions are noted, this report provides the operational and financial overview of all Vincent facility buildings and recommends divesting the Blyth St Museum.

Clyde Police Lockup

Attribute	Details
Purpose	Historic police lock-up museum
Location and Proximity	Transportable Building is currently located on the reserve next to the Clyde Railway Station
Usage	· Originally part of the Clyde Historic Museums Inc lease as the building sat at the Blyth Street Museum but was unusable by the public. · Clyde Museum is working on an information sign board and have display material ready to exhibit. · Due to the historical significance of the building, a full conservation report completed in 2014.
Legal Status	Transportable building located on vested reserve land
Condition	The Lock-up has been made safe, with appropriate drainage and repairs to rotten fascia etc.
Recommendation	Divest given the high capital costs.

Rates Income and Expenditure:

Income
Rates Portion of Revenue - LTP Yr 1 - 9	21,500
Expenditure
Operational Costs 2023/2024	174
Operational Costs LTP Yr 1 - 9	28000
Capex Costs LTP Yr 1 - 9	28,400

Clyde Railway Station Building

Attribute	Details
Purpose	Historic Railway Station with commercial tenant and museum space
Usage	· Long-term commercial tenant generating annual income of $11,268. · The tenant is also responsible for maintenance and utilities for the building and unlocking and overseeing the Railway Museum space.
Legal Status	Building located on reserve land, to be investigated further
Condition	Earthquake prone (<20%NBS) cost for strengthening - Year 2 2026/27 $92,619
Recommendation	Divest due to high capex costs.

Rates Income and Expenditure:

Income
Rates Portion of Revenue - LTP Yr 1 - 9	90,100
Annual Lease Income	11,268
Expenditure
Operational Costs 2023/2024	10,447
Operational Costs LTP Yr 1 - 9	125,000
Capex Costs Renewal LTP Yr 1 - 9	60,879

Clyde Briar and Herb Museum Site:

The Goods Shed, public toilets, part of the Museum and Foundry all sit on one parcel at 12 Fraser Street, Clyde which is fee simple subject to further investigation. There is potential to sell the site including buildings either as a whole or in parts, however North boundary issues need to be remedied to enable this.

The Briar & Herb Factory, Caretakers Cottage (tenanted), meat safe and other buildings are situated across four parcels at 20 – 22 Fache Street, Clyde which are also fee simple.

Six of the buildings have been assessed as being earthquake prone based on high level assessments. The five buildings most at risk are within the Briar and Herb Museum complex.

Briar and Herb Museum Site:

Attribute	Details
Purpose	Museums, residential cottage and public toilet. Site is identified as a heritage site in the District Plan.
Location and Proximity	Located 310m from the Blythe Street Museum and 60m from the Clyde Railway Station.
Usage	· Museum – closed but leased by Clyde Historic Museums Inc. · Briar & Herb Caretakers Cottage - Tenant in cottage and maintain grounds as per agreement. · Public Toilets (also used by tenant in Clyde Railway Station as part of lease).
Legal Status	12 Fraser Street, Clyde: Fee simple, further investigation required 20-22 Fraser St, Clyde: Fee simple, further investigation required Cottage tenanted under the Residential Tenancy Act.
Condition	Six out of ten buildings are earthquake prone with no budget.
Recommendation	Divest given the current condition of the museum buildings and high operational and capex costs. Further investigation required for provision of toilets for the Clyde Railway Station.

Briar and Herb Museum Buildings Rates Income and Expenditure:

Income
Rates Portion of Revenue - LTP Yr 1 - 9	216,000
Expenditure
Operational Costs 2023/2024	28,360
Operational Costs LTP Yr 1 - 9	310,000
Capex Costs LTP Yr 1 - 9	0

Rented Cottage Rates Income and Expenditure:

Income
Rates Portion of Revenue - LTP Yr 1 - 9	118,650
Annual Rental Income	16,640
Expenditure
Operational Costs 2023/2024	14,808
Operational Costs LTP Yr 1 - 9	164,400
Capex Costs LTP Yr 1 - 9	38,650

Blyth Street Museum

Attribute	Details
Purpose	Museum and meeting room
Location and Proximity	Located in the Clyde Heritage precinct
Usage	· Currently leased to Clyde Historic Museums Inc. for $1 per annum. · Council as lessor pays rates, electricity, replacement building insurance and maintenance to exterior of the building and the lessee pays for telephone, public liability, cleaning and provisioning of toilets.
Legal Status	Fee simple land but boundary parcels need to be tidied up. There is potential to sell the building and/or land or alternatively or status quo is retained as resolved by Council.
Condition	Tidy condition, Museum would like heating/cooling.
Recommendation	Divest given the high operational and capex costs.

Rates Income and Expenditure:

Income
Rates Portion of Revenue - LTP Yr 1 - 9	261,200
Expenditure
Operational Costs 2023/2024	34,122
Operational Costs LTP Yr 1 - 9	349,000
Capex Costs LTP Yr 1 - 9	32,450

4. Financial Considerations

There are no financial considerations with this decision at this time.

Feedback regarding the level of service for Vincent community buildings is for Council’s consideration to determine what may be included in the public consultation document as part of the Long-Term Plan 2025/34 process.

5. Options

Option 1 – (Recommended)

The following buildings are retained:

· Alexandra Community Centre

· Molyneux Stadium

· Central Stories Building

The following buildings be divested:

· Ophir Hall

· Poolburn Hall

· Becks Hall

· Clyde Hall

· Vallance Cottage

· Former Riding for the Disabled Building

· Clyde Police Lock Up

· Clyde Railway Station Building

· Clyde Briar and Herb Museum Site

· Blyth Street Museum

Advantages:

· Reduced operational costs

· Reduced capital costs

· Reduced rates contribution

Disadvantages:

· The community may feel aggrieved but will have the opportunity to make submissions during the draft LTP public consultation process.

Option 2

To retain or divest the buildings recommended by the Board and to identify the timing of earthquake strengthening in the draft LTP 25/34

Advantages:

· This will give the community some surety of the provision of Vincent community buildings

· The impact of the costs associated with earthquake strengthening could be deferred

· Reconsideration of these building can be undertaken during the draft LTP 2027/37

Disadvantages:

· The cost to defer the earthquake strengthening work will increase significantly

· Risk to users of continued use of earthquake prone buildings

Option 3

Status quo as proposed in the draft LTP 25/34

Advantages:

· There are no clear advantages with this option

Disadvantages:

· The burden on ratepayers may be unacceptable for many who are already struggling with the increase cost of living

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by the Vincent Community Board. The recommendation promotes the social and economic wellbeing of communities, in the present and for the future by giving feedback to Council for a recommended level of service for Vincent buildings.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The decision is guided by the “Council – owned Earthquake – prone Building Policy” and the “draft Long-Term Plan 2025/2035” for budget requirements.
Considerations as to sustainability, the environment and climate change impacts	There are no sustainability, environment or climate change impacts with this decision.
Risks Analysis	Under the current earthquake strengthening legislation outlined in the Building Act 2014, strengthening work must be carried out within a prescribed time frame. The cost of this work is significant and must be balanced with the frequency of use in the building.
Significance, Consultation and Engagement (internal and external)	The level of investment to proceed with earthquake strengthening of identified prone buildings is significant. The decision made by the Board will give formal feedback to Council. Under the draft Long-Term Plan 2025/34 process Council will consult with the public on the costs and the implications for the community with regard to level of service for buildings.

7. Next Steps

18 December 2024 - Present report to Council with the Board’s feedback.

8. Attachments

Nil


AGENDA Late Reports Vincent Community Board Meeting Tuesday, 3 December 2024
Date:	Tuesday, 3 December 2024
Time:	10.00 am
Location:	Omakau Rugby Club Rooms, Omakau Reserve, 13 Alton Street, Omakau (A link to the live stream will be available on the Central Otago District Council's website.)
Peter Kelly Chief Executive Officer