On Tuesday, 18 December 2018, Tauranga City Councillors agreed in-principle to gift 11 Mission Street to the Otamataha Trust, which represents the combined interests of local hapū, to recognise their historic and cultural connection to this area.
The gift of the property would be on the basis of a perpetual, or ongoing lease agreement with the Elms Foundation to enable the development of 11 Mission Street as a reception and education centre.
The long term lease would be with a ‘peppercorn rental’ meaning the Elms Foundation would pay a minimal payment.
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Background
The property at 11 Mission Street is located within the original Otamataha Pā site. Prior to being visited by missionaries in the 1820s the site was occupied by local hapū and used as a Pā meaning local hapū lived, cared for their gardens and traded there. If transferred to the Otamataha Trust, the property would enable local hapū to reconnect with ancestral land and establish a physical presence in an area of significant cultural and historical importance to them.
11 Mission Street today
The property at 11 Mission Street is owned by Tauranga City Council and is subject to a lease to the Elms Foundation. The Elms is one of Tauranga’s oldest heritage sites and until recently the Elms have used the property at 11 Mission Street to store items from its collection. In the future, the Elms plan to develop 11 Mission Street into a reception and education centre. The proposed future use of 11 Mission Street is supported by the Otamataha Trust.
Timeline of Council decisions
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Date
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Event/action
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November 2006
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Council purchased 11 Mission Street from Mission Accomplished Holdings Ltd.
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January 2007 – November 2009
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11 Mission Street rented on open market.
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September 2007
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Council meeting – Report DC240 The Elms - The Way Forward. Council resolved (amongst other matters) that the Foundation would have the opportunity to lease the Property from Council in the future. Council also resolved to the transfer of Council’s interest in 29 & 31 Chapel Street to the Foundation.
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November 2009 – June 2010
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Council granted licence to occupy to The Elms Foundation.
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February 2011
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Council meeting - Report DC52 presented Foundation’s request to gift ownership of 11 Mission Street to Foundation along with Council’s share in 7 Mission St. Council resolved to transfer its share in 7 Mission St to Foundation and grant long-term lease of 11 Mission Street to Foundation.
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October 2011
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Lease commenced with peppercorn rental and Foundation responsible for maintenance and outgoings.
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June 2016
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Foundation asked Council to consider gifting 11 Mission Street and worked with Council to satisfy lease conditions.
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June 2017
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Council advised that mana whenua need to be notified of the proposal in accordance with Council policy.
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July 2017
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Otamataha Trust notified of Foundation’s request.
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August 2017
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Otamataha Trust met advised Council of its desire to have Council gift 11 Mission Street to Trust.
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August 2017 – March 2018
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Council staff met with Otamataha Trust and Elms Foundation representatives to discuss each parties gifting proposals, options for progressing, and status of requirements of lease. Foundation confirmed their development could proceed if certainty of their interest in 11 Mission Street was provided, and this may not be through ownership.
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June 2018
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Resource consentgranted for construction on 7 Mission Street and to use the Elms site (including 11 Mission Street) as a community facility.
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December 2018
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Council agreed in-principle to transfer Property to Otamataha Trust at nil consideration.
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Council report from 18 December 2018
Council report pages 124 of agenda (12mb pdf)
Council resolution:
(a) Agrees in-principle to transfer the property at 11 Mission Street to the Otamataha Trust at nil consideration;
(b) Delegates authority to the Chief Executive to negotiate the terms and conditions of the agreement and lease arrangement with the Elms Foundation and the Otamataha Trust.
(c) That the agreement terms are reported back to Council for ratification and a decision on transfer of the property.
(d) That this matter is consulted with the community and reported back to Council.
Minutes from Council meeting pages 2 and 11 (591kb pdf)
Before voting on the resolution, Councillors discussed and acknowledged:
- The cultural and emotional connection to the land by Otamataha Trust
- That Otamataha Trust had indicated that they would be agreeable to a minimal rental with a perpetual lease
- That the Elms proposed future use of 11 Mission Street is supported by the Otamataha Trust.
- That the land was anticipated being gifted to either the Elms Foundation or the Otamataha Trust
- That there were expectations by council and the community that the property would be transferred to the Elms Foundation.
- The relevance of the relationship with the community, and that it is appropriate for the community to be consulted on the proposal.
- The distinction between Council agreeing to the transfer, and agreeing, in-principle, to the transfer
On the basis of an agreement, in-principle, the Chief Executive was given authority to negotiate the terms of the transfer and lease and consult on the proposal, which would be reported back to Council.
Questions and answers
What is a perpetual lease?
The Elms Foundation and Otamataha Trust would agree to an initial 99-year lease, with further terms of 99-years if required, and if there has been no breach of the lease.
What is meant by minimal or peppercorn rental?
A small sum – in this case, $1.00 per year.
If The Elms Foundation wants to do anything on the property, e.g. put up new buildings, will it need the Otamataha Trust’s permission?
The Otamataha Trust has confirmed that it supports the Elms Foundations current development proposal for the Property.
The Lease will record that the Foundation is to use the property to preserve and promote the history of Tauranga Moana, and other uses that are consistent with the Foundation’s Trust Deed. As a general principle, the Foundation will have the right to construct structures/buildings on the Property which are consistent with Elms Foundation Trust Deed. The Foundation will need to consult the Trust in matters of tikanga Maori (correct procedures, customs, practices, values) in respect of the Foundations use of, and activity on, the land.
Who was the original owner of the property?
The property was part of a larger area of Maori land.
The property was first awarded to the Church Mission Society as part of a larger Otamataha parcel in 1852, and then transferred to the New Zealand Mission Trust Board in 1896.
How did Council come to own the property?
Council purchased the property from Mission Accomplished Holdings Limited in November 2006, following an expression of interest from The Elms Foundation to develop their adjacent site at 15 Mission Street.
Why has Council agreed in-principle to transfer the property to the Trust?
In 2004 the Waitangi Tribunal held that the initial awarding of the property to the Church Mission Society in 1852 was in breach of the Treaty of Waitangi.
The Trust, on behalf of the descendants of this area, have expressed interest in the property. In discussions with the Trust and the Foundation, the transfer of ownership to the Trust will not prevent the Foundation from achieving their current development aspirations for the Elms site.
Why hasn’t Council gifted the property to The Elms Foundation?
In 2011, the Foundation asked Council to gift the property to it. The Foundation acknowledged that it could proceed with the development of the whole site with a long term lease in place. At the time, Council wanted certainty that the property would be developed in line with the master plan that had been developed for the area. Council advised the Foundation that it would need to meet several requirements before it would consider transferring the property, namely, a business and funding plan for the development in a manner consistent with the existing master plan; funding detail; and all necessary resource and building consents needed to carry out the development.
What is the value of the property?
The 2019/20 rating valuation for the property is $1,070,000.00.