Council to Consult on Subsidiary to Property Org
29 September 2006
Council to Consult on Subsidiary to Tomorrow’s Manukau Properties Limited
Subject to public consultation, Manukau City Council has approved the formation of a subsidiary company to its council-controlled organisation, Tomorrow’s Manukau Properties Limited (TMPL).
The public consultation begins next week (Tuesday, 3 October), with submissions closing at 4pm, Friday, 3 November. Hearings of submissions will be held in November (dates and times to be confirmed).
The subsidiary company, fully owned by TMPL, would be a council-controlled trading organisation formed specifically to own the council’s land designated for the new Flat Bush town centre.
“Because TMPL could be asked to take on development of other council-owned land in the future, it’s desirable to allow for a commercial and legal separation of the Flat Bush town centre project and any other developments,” Director Strategy Grant Taylor says.
Forming a subsidiary CCTO is a prudent commercial strategy in line with normal business practice, he says.
The TMPL board of directors would also be the board of the subsidiary, and be directly responsible to Council for achieving its vision of the successful development of the town centre, Mr Taylor says. With the same directors on both boards, there would be no additional fees.
As a CCTO, TMPL's subsidiary would operate under the provisions of the Local Government Act 2002 and also under the Companies Act 1993.
The subsidiary’s community and financial performance objectives would be included in the annually negotiated Statement of Intent. The board of directors would report on, and be accountable for, the subsidiary’s performance in quarterly and annual reports to the Council.
Both the SOI and Annual Reports for TMPL's subsidiary would be published and available to the public each year.
About Tomorrow’s Manukau Properties Limited:
TMPL was incorporated in October 2005 as a wholly-owned subsidiary of Manukau City Council. Its principal role is to oversee infrastructural development for the Flat Bush town centre. As a limited liability company, it has a board of directors, directly accountable to Council, which is responsible for developing the Flat Bush town centre on a commercial basis. It is also possible that TMPL will oversee the infrastructural development of other council-owned land.
Flat Bush will cater for around 40,000 people by 2020. The town centre, flanked by the new Barry Curtis Park, will be on 18ha of land, with a mix of retail, commercial, community and residential development, including a new recreation centre. Seven new schools are also planned for Flat Bush.