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Devonport-Takapuna Local Board

21 May 2019

Lease and Land Owner Approval for Takapuna Beach Holiday


Park

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File No.: CP2019/06551

Te take mō te pūrongo
Purpose of the report
1. To request land owner approval for Auckland Council to enter into a lease with Takapuna
Beach Holiday Park Limited (TBHPL) for an initial term of 20 years with a right of renewal for
10 years at the property known as Takapuna Beach Campground, located on the northern
end of Takapuna Beach Reserve, 22 The Promenade, Takapuna, legally described as Lot 4-
10 DP 18501.
2. To request land owner approval for Takapuna Beach Holiday Park Limited (TBHPL) to
redevelop the site in accordance with the concept plans, subject to the detailed design being
finalised through the regulatory consenting process.

Whakarāpopototanga matua
Executive summary
3. The holiday park is located at 22 The Promenade, Takapuna, which is also known as the
northern end of Takapuna Beach Reserve. It is legally described as Lot 4-10 DP 18501, and
is held in fee simple by Auckland Council as a classified recreation reserve subject to the
Reserves Act 1977. The extent of the site is shown in Attachment A.
4. The local board is aware of the history of the site and previous resolutions supporting a
redevelopment of the campground, further details of which are provided in the context
section of this report.
5. As part of that process, Auckland Council has satisfactorily completed the required statutory
processes of public notification, where there was extensive public support for retaining the
holiday park and appropriate engagement with iwi regarding the council’s intention to grant a
new commercial lease for the site.
6. On 19 September 2017, the local board resolved its intention to lease the footprint of the
current campground site for an initial 20 years, with a further 10 year right of renewal for a
new operator to develop an upgraded holiday park (resolution number DT/2017/217).
7. The local board confirmed that Panuku Development Auckland should proceed with an
Expressions of Interest and Request for Proposals process to identify an operator with the
right vision, capital and operational skills to redevelop and operate a holiday park to be
aligned to the local board and community’s expectations. Three applications were received.
8. Panuku Development Auckland has now concluded negotiations with a suitable operator to
redevelop the site in accordance with the design principles as previously determined by the
local board and the community, subject to receiving the benefit of a lease term to allow a
return on such investment.
9. Auckland Council has entered into an Agreement to Lease with the preferred operator that is
conditional upon receiving land owner approval from the local board and Minister of
Conservation approval, as required under the Reserves Act 1977.
10. Upon receipt of these approvals, Auckland Council will be authorised to enter into a Deed of
Lease with Takapuna Beach Holiday Park Limited (TBHPL). The company will undertake the
redevelopment works and operate the business on site for the term of the lease.
11. In order to redevelop the campground in accordance with the concept plans, the following
works will be required:

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(i) The current lessee is obligated to remove its own cabins, caravans and the office
building, subject to land owner approval and the re-instatement conditions in the
existing lease;
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(ii) Panuku Development Auckland will remove or demolish the existing Auckland
Council owned buildings (if required as part of the redevelopment site), subject to
land owner approval. A plan showing the existing council assets is attached to this
report as Attachment D
(iii) Panuku Development Auckland will prepare the underlying site to a standard that will
allow for the redevelopment of the site to include a new stormwater swale (or similar)
and associated cut and fill to re-contour the lower parts of the site to address the
current coastal inundation issues. This will require land owner approval at a later
date once the design has been finalised; and
(iv) Takapuna Beach Holiday Park Limited (TBHPL) will undertake the site landscaping
works and construct the new buildings in order to provide the following amenities on
the redeveloped site:
 camping / tent sites;
 campervan and / or caravan sites;
 small accommodation units;
 family accommodation units;
 communal kitchen, laundry, ablutions, reception office, and other supporting
facilities; and
 landscaping, utility services and parking areas.
12. Permitting these activities is essential to give effect to the lease.
13. During the regulatory consent process for the works, the detailed design will be finalised and
landlord and land owner approval sought.

Ngā tūtohunga
Recommendation/s
That the Devonport-Takapuna Local Board:
a) grant a lease to Takapuna Beach Holiday Park Limited (TBHPL) for the site of the
Takapuna Beach Campground, located on the northern end of Takapuna Beach Reserve,
22 The Promenade, Takapuna, legally described as Lot 4-10 DP 18501, for an initial term
of 20 years, with a further 10 year right of renewal for an upgraded holiday park.
b) grant land owner approval for Takapuna Beach Holiday Park Limited (TBHPL) to
undertake works to redevelop the lease site, subject to compliance with the terms of the
lease, land owner and regulatory approval processes.

Horopaki
Context
14. A holiday park has operated at the site on the northern end of Takapuna Beach Reserve, 22
The Promenade, Takapuna, for the past 100 years. The property was originally owned by
E.W. Alison, the Mayor of Devonport and later Takapuna in the early 1900s and was known
as Alison's Paddock. E.W. Alison transferred ownership to the Devonport Steam Ferry
Company which he ran in 1912, and fourteen holiday cabins were subsequently built on the
site. In 1929, L.L. Speedy purchased the property from the North Shore Transport Company
and added nine flats, four sleeping lodges, an office, a caretaker's lodge and store. It was

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known as the 'Takapuna Tourist Court' and was sold in 1962 to New Zealand Breweries.
Takapuna City Council purchased the land in 1977.
15. The current lease between Auckland Council and Real Kiwi Holiday Company expired on 31

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March 2013. The tenant has continued to operate on a “holdover basis” consistent with the
lease terms but varying the rent formula to be a percentage of turnover. The agreement to
allow the tenant to remain on a month to month basis was to enable the council to undertake
the required investigations as to the future use of the site.
16. On 15 November 2016, the local board resolved to confirm its support for “an upgraded
beach holiday park and campground activity, in the same location on the same leased area,
within the Northern Activity Zone of the Takapuna Beach Reserve” (resolution number
DT/2016/200 & 201).
17. In March 2017, an Expression of Interest (EOI) and Request for Proposals (RFP) documents
were developed to outline the design principles determined by the local board and the
community.
18. On 19 September 2017, the local board resolved its intention to lease the footprint of the
current campground site for an initial 20 years, with a further 10 year right of renewal for a
new operator to develop an upgraded holiday park (resolution number DT/2017/217).
19. Panuku Development Auckland then proceeded with an EOI and RFP process that
concluded in April 2018, resulting in three applications being received. Commercial
negotiations with the first-ranked applicant commenced; however, that applicant withdrew
from the process in late 2018. Panuku Development Auckland then entered into discussions
with the second-ranked applicant which caused a subsequent delay in presenting further
information to the local board.
20. Panuku Development Auckland has now concluded negotiations with Takapuna Beach
Holiday Park Limited (TBHPL) for the lease and redevelopment of the site as per the
concept plans attached to this report that were developed in accordance with the design
principles.
21. On commencement of the lease it is intended that the campground operation will continue in
a basic form whilst final design drawings are prepared, and regulatory approvals are sought.
The content of the resource and building consent applications will be subject to approval by
the council acting in its capacity as land owner, landlord and regulatory authority.
22. Once the regulatory consents are obtained, the site will be briefly closed to enable the
underlying site preparation and redevelopment works to occur. The tenant will be required to
complete the redevelopment before mid-2022 as per the lease obligations.

23. A table outlining the background and timeline of events to lease the reserve for an upgraded
holiday park is attached to this report as Attachment C.

Tātaritanga me ngā tohutohu


Analysis and advice
Grant a lease of 22 The Promenade, Takapuna

24. To complete the Reserves Act 1977 process to issue a new lease (as outlined in the
previous section of this report), the local board must grant land owner approval to enable
council to enter into a lease with TBHPL on the footprint of the current campground site on
the northern end of Takapuna Beach Reserve (22 The Promenade, Takapuna) for a term of
an initial 20 years, with a further 10 year right of renewal for an upgraded holiday park

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Land owner approval for physical improvement works and upgrades

25. The works to upgrade the holiday park include a number of proposed physical improvements
to the site which require land owner approval from the local board. The improvement
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activities include:
 landscaping works to significantly improve storm water and run-off issues on the reserve;
 demolition and / or removing existing buildings; and
 construction of new, upgraded building, site utilities and hard paving / roads.
26. The benefits of permitting these activities are:
 that the landscaping improvements to the reserve may include new swales and
associated cut and fill to re-contour the lower parts of the site. It will also address the
current coastal inundation issues and run-off following major storm events; and
 the works will significantly improve the physical amenity of the reserve.
27. The tenant is committing significant investment into the site to include the upgrade of the
facilities.
28. Panuku Development Auckland is funding the removal of existing council owned buildings to
enable TBHPL to build new structures as part of the redevelopment.
29. Panuku Development Auckland will also fund the development of the swale (or similar).
30. This development maximises the upgrade potential and is aligned to the local board’s vision
for the reserve.
31. On termination of the existing lease, the current lessee is obligated to remove their assets
(i.e. the static caravans, cabins and office building). Subject to the condition of these
structures and negotiation between the current and new operator, some of these structures
may pass to the new operator and temporarily remain on site until the redevelopment
occurs.
32. Permitting these activities is essential to give effect to the lease. Concept renders showing
indicative perspective views of the proposed holiday park are included as Attachment B.
These concept renders include provision for:
 camping / tent sites;
 campervan and / or caravan sites;
 small accommodation pod units;
 family accommodation units;
 communal kitchen, laundry, ablutions, reception office, and other supporting facilities;
and
 landscaping, utility services and parking areas.
33. Alternate uses for the northern end of Takapuna Beach Reserve at 22 The Promenade have
previously been considered and addressed throughout the Reserves Act 1977 statutory
process. The recommendations in this report are consistent with the local board’s direction
and objective to create an upgraded beach holiday park and campground activity, in the
same location and on the current leased area.
34. It is recommended that the local board grant the lease and land owner approval to The
Takapuna Beach Holiday Park Limited (TBHPL) so that the upgrade of the holiday park can
commence.

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Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera


Council group impacts and views
35. Panuku Development Auckland received advice as shown in paragraph 11 of this report

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from council’s Land Advisory Services team regarding the further land owner approvals
required from the local board, prior to any regulatory consent applications being submitted
for the swale (or similar), landscaping and redevelopment works.
36. Panuku Development Auckland has also worked closely with local board staff to ensure that
the granting of the lease and land owner approval forming part of this report is aligned to the
local board’s vision for the site.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe


Local impacts and local board views
37. The Devonport-Takapuna Local Board has been an integral part of and a driving force
behind the holiday park lease process to date.
38. As outlined in the report, it is important to note that although Panuku Development Auckland
is responsible for the management of commercial activities, such as the lease for the
operation of a holiday park, final decision-making around leasing on local parks and
reserves is allocated to the local board. Panuku Development Auckland will give effect to
and implement the lease.
39. The use of the reserve for the holiday park and associated camping activities is supported
by the Devonport-Takapuna Local Board Plan 2017 Outcome: “Quality parks, beaches and
open spaces that everyone can enjoy”, as it ensures there is open space for use and
enjoyment of the growing population.

Tauākī whakaaweawe Māori


Māori impact statement
40. Prior to the statutory consultation process required for lease notification under the Reserves
Act 1977, 19 iwi were invited to participate in a 1 August 2016 visioning workshop. The
visioning workshop identified the strong desire by the stakeholders and mana whenua
partners present on the day to ensure a strong cultural footprint is reflected in the upgraded
facility.
41. Prior to the instigation of the lease notification process, council identified 13 mana whenua
groups having an interest in the Devonport-Takapuna Local Board area as follows:
 Ngāti Whātua o Kaipara;
 Te Rūnanga o Ngāti Whātua;
 Ngāti Whātua o Ōrākei;
 Ngāi Tai Ki Tāmaki;
 Te Kawerau a Maki;
 Ngāti Tamaoho;
 Te Akitai Waiohua;
 Ngāti Te Ata Waiohua;
 Ngāti Paoa;
 Ngāti Maru;
 Ngāti Whanaunga;
 Ngāti Tamaterā; and
 Te Patukirikiri

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Ngā ritenga ā-pūtea


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Financial implications
42. Should the local board decline the land owner approval application and lease for Takapuna
Beach Reserve, 22 The Promenade, it would result in the following:
 TBHPL will be unable to proceed with the site redevelopment and is likely to withdraw
from the process;
 the local board will be required to provide further direction on the future use of the land,
which may include another EOI or RFP process should a holiday park still be a
preferred use;
 the timeframes for finding a suitable operator or alternative use will be extended, and will
result in additional costs and delays to council; and
 delays to the redevelopment of the site will result in loss of rental and operational
revenue for Auckland Council and will result in a vacant inaccessible site.
 the loss of faith and confidence in the processes of council within the community, who
have been advocating for a long time for the retention and upgrade of a holiday park on
that site.

Ngā raru tūpono me ngā whakamaurutanga


Risks and mitigations
43. If the lease and land owner application is not approved, the risk is that:
 the tenderer will not be able to proceed;
 the current process will end, and the local board will need to commence further work to
determine use and activities on the reserve;
 the current premises appear to have potential issues with greywater and/or wastewater
from the site. The development of the new facility will include the upgrade to existing
wastewater/greywater systems within the site, and hence eliminate these potential
environmental issues; and
 the existing campground and facilities are approaching the end of their useful life and
therefore require a timely decision to enable the upgrade in the short term to secure the
involvement of TBHPL and allow work to occur between peak seasons where possible.
If this did not occur Auckland Council would be liable for the removal of its campground
assets and re-instatement to a council reserve.
44. By granting a long-term lease, the risks above are mitigated as the proposed operator will be
able to manage the financial risks associated with the capital development costs over a 20 to
30-year period.

Ngā koringa ā-muri


Next steps
45. If the local board grants the land owner application, Auckland Council will enter into the deed
of lease with TBHPL and seek final approval from the Minister of Conservation. Ministerial
approval is held under delegated authority by the General Manager of Community Facilities,
in accordance with the requirements of the Reserves Act 1977.
46. On receiving Ministerial consent, the Agreement to Lease will become unconditional. The
following steps will then be undertaken:
 termination notice given to the current operator;
 the existing non-council owned assets may be removed from the site;

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 the lease to TBHPL commences;


 holiday park closes for the remediation works (expected to take 3-6 months);
 further land owner approval from the local board is sought for the swale (or similar) and

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further works relating to those activities outlined in Attachment B;
 regulatory approvals obtained for works relating to those activities outlined in Attachment
B;
 holiday park closes for two to three months to allow for the removal of the council owned
assets, the creation of the swale (or similar) and the further works relating to the
activities outlined in Attachment B;
 holiday park re-opens; and
 final landscaping completed.
47. The site will be fully redeveloped by 2022 as per the obligations within the lease.

Ngā tāpirihanga
Attachments
No. Title Page
A⇩ Site plan indicating location and extent of holiday park lease area 21
B⇩ Concept renders showing proposed redeveloped holiday park (indicative 23
only)
C⇩ Table outlining background and timeline of events for establishing a new 29
lease for the property
D⇩ Existing site plan showing location of existing council owned assets 31

Ngā kaihaina
Signatories
Authors Lucy Oliver - Commercial Property Manager
Raewyn Sendles - Land Use Advisor
Authorisers Ian Wheeler - Director Portfolio Management, Panuku Development Auckland
Rod Sheridan - General Manager Community Facilities
Eric Perry - Relationship Manager

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Attachment A

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Attachment B

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Attachment B

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Attachment B

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Attachment B

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Attachment B

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Attachment C

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Attachment C

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Attachment D

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