stage 1 land status audit wdc #19 title derivation ... · address corner mowhanau drive and rapanui...

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Offices 116 Te Mata Mangateretere Road, Havelock North, Hawke's Bay | Post RD 10, Hastings 4180 Company Turley & Co Ltd | P +64 (6) 650 3569 | E [email protected] | W turley.co.nz Backing Clean Rivers Since 2006 | Trustee Maraetōtara River Restoration | maraetotaratreetrust.co.nz STAGE 1 LAND STATUS AUDIT TITLE DERIVATION, OWNERSHIP & STATUTORY WDC #19 Part Kai-Iwi 6F2 Block Corner Mowhanau Drive & Rapanui Rd Kai Iwi Whanganui District A Refer to associated reports for: Rapanui Mowhanau Bowling Club and Kai Iwi Holiday Park (props #17 and #18). Prepared for Rob Boyd Senior Property Officer Whanganui District Council WHANGANUI By email [email protected] Confidential 29 July 2020 Turley & Co | 20 07 29 WDC LSR Title S1 - Part Kai-Iwi 6F2 Block WDC #19 - FF | Page 1 of 47

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Offices 116 Te Mata Mangateretere Road, Havelock North, Hawke's Bay | Post RD 10, Hastings 4180

Company Turley & Co Ltd | P +64 (6) 650 3569 | E [email protected] | W turley.co.nz

Backing Clean Rivers Since 2006 | Trustee Maraetōtara River Restoration | maraetotaratreetrust.co.nz

STAGE 1 LAND STATUS AUDIT

TITLE DERIVATION, OWNERSHIP &

STATUTORY

WDC #19

Part Kai-Iwi 6F2 Block

Corner Mowhanau Drive & Rapanui Rd

Kai Iwi

Whanganui District

A

Refer to associated reports for:

Rapanui Mowhanau Bowling Club and Kai Iwi

Holiday Park (props #17 and #18).

Prepared for

Rob Boyd

Senior Property Officer

Whanganui District Council

WHANGANUI

By email

[email protected]

Confidential 29 July 2020

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INSTRUCTIONS & PURPOSE ............................................................................................................................... 4

1.1 Land Status Audit .............................................................................................................................................. 4

1.2 Report Purpose and Scope ................................................................................................................................ 4

LAND AERIAL IMAGE ......................................................................................................................................... 4

2.1 Subject Land Image ........................................................................................................................................... 4

2.2 Inspection .......................................................................................................................................................... 5

STAGE 1 FINDINGS SUMMARY .......................................................................................................................... 6

3.1 Stage 1 Findings................................................................................................................................................. 6

3.2 Crown Reversionary Interest ............................................................................................................................. 6

3.3 Council Adjoining Land ...................................................................................................................................... 6

PROPERTY SUMMARY ....................................................................................................................................... 7

4.1 Summary ........................................................................................................................................................... 7

CLIENT INFORMATION ...................................................................................................................................... 9

5.1 Client Supplied .................................................................................................................................................. 9

LAND ACQUISITION DETAILS ........................................................................................................................... 10

6.1 Stage 1 Considerations .................................................................................................................................... 10

6.2 Stage 1 Requirements ..................................................................................................................................... 10

S40 PUBLIC WORKS ACT 1981 ......................................................................................................................... 10

7.1 s40 Considerations .......................................................................................................................................... 10

RESERVES ACT 1977 ........................................................................................................................................ 11

8.1 Reserves Act 1977 ........................................................................................................................................... 11

8.2 Gazetted Status ............................................................................................................................................... 11

8.3 Use Implications .............................................................................................................................................. 11

8.4 Reserve Revocation ......................................................................................................................................... 12

8.5 Iwi Considerations ........................................................................................................................................... 12

CO-GOVERNANCE ............................................................................................................................................ 13

INVESTIGATIONS SCOPE .................................................................................................................................. 13

10.1 Investigation Process....................................................................................................................................... 13

10.2 Investigation Reference .................................................................................................................................. 14

AFFIRMATIONS ................................................................................................................................................ 14

11.1 Recitals ............................................................................................................................................................ 14

LIMITATIONS ................................................................................................................................................... 14

12.1 Reliance ........................................................................................................................................................... 14

12.2 Limitations General ......................................................................................................................................... 15

12.3 Limitations Unique .......................................................................................................................................... 15

SIGNOFF .......................................................................................................................................................... 15

APPENDIX 1 – COUNCIL LAND TITLE STATUS GUIDE ........................................................................................................ 17

APPENDIX 2 – LAND HISTORY FLOWCHART ..................................................................................................................... 18

APPENDIX 3 – TITLE INSTRUMENT EVIDENCE .................................................................................................................. 20

APPENDIX 4 – OTHER INFORMATION ............................................................................................................................... 21

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APPENDIX 5 – UNIVERSAL ADVISORY LIMITATIONS & DISCLAIMERS ............................................................................... 22

Reader Notices

TCL © Copyright 1998-2020. This work is confidential to the addressee/s and subject to the copyright of Turley & Co Ltd (TCL). All

rights reserved. Items from this document may not be adopted, reused or disseminated in any form without the written consent

of a TCL director. All dollar values are NZD. Appended limitations and disclaimers apply.

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INSTRUCTIONS & PURPOSE

1.1 Land Status Audit

1.1.1 This Stage 1 Land Status Audit report addresses land title derivation, ownership and statutory

considerations in response to the 18 December 2019 instructions of Whanganui District Council.

1.1.2 Potentially required further to Stage 1 discovery:

o Stage 2: If required, further land history investigations external to Government digital sources (Council

files, Libraries for Gazette Volumes and/ or Archives NZ).

o Stage 3: s40 Public Works Act 1981 investigations and findings concerning s40 pre-disposal obligations

if land could be considered (reserves not applicable).

o Stage 4: Strategic Property Plan (SPP) for the property for 1-5 years including: options analysis

(opportunities and risks), safe property decisions and actions advisory (tenancy, subdivision,

amalgamation, land development, reserve reclassification, disposal, DoC exchange, etc).

o Stage 5: Transaction best process and strategies design and process planning (tenancy or disposal

options, strategy, and method).

o Stage 6: SPP asset management execution support or leadership and periodic SPP reviews (including

other specialists, legal, valuers, real estate, etc).

1.1.3 Turley & Co can action or support the foregoing and is LINZ Accredited for Crown public land statutory

actions including s40 and disposals: http://www.linz.govt.nz/create-accredited-supplier-55

1.2 Report Purpose and Scope

1.2.1 Stage 1 Land Status Audit report purpose is confirmation of:

(1) Land title derivation (history)

(2) Land title ownership (legal)

(3) Land title status statutory implications (per Stage 1 scope)

1.2.2 Turley & Co’s Council Land Title Status Guide Appendix 1 informs:

o Status 1: Council owned non-reserve land

o Status 2: Council owned gazetted reserve land

o Status 3: Crown derived title gazetted reserve land vested in Council

o Status 4: Allocated or unallocated Crown land either administered by Council, or wrongly held1

1Gazetted reserve administered by Council or non-reserve land. Administered means appointed to control and manage

the reserve under the Reserves Act 1977. Council may apply to DoC to have a reserve vested.

1.2.3 The Stage 1 scope was agreed with Council.

LAND AERIAL IMAGE

2.1 Subject Land Image

2.1.1 The subject land is outlined red:

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2.1.2 Sourced from Property Guru (undated).

2.2 Inspection

2.2.1 Inspection of the subject land for Stage 1 is unnecessary. We may need to inspect the property for safe

delivery of Stages 2-6.

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STAGE 1 FINDINGS SUMMARY

3.1 Stage 1 Findings

3.1.1 We confirm the subject land is:

(a) Crown derived title land vested in Whanganui District Council (owned by Council)1

(b) Title Status 3: Crown Derived Title (Crown reversionary interest)2

(c) Subject to the Reserves Act 1977

(d) Held in a Record of Title in Council’s name

(e) Because the land is a gazetted reserve under the Reserves Act 1977, the land is not subject to s40

Public Work Act 1981

(f) Other statutes and law affect the land.

1By owned: Whanganui District Council holds the land in a Record of Title. The Crown has a reversionary interest in the

land. Refer 3.2.

2Refer to title status guide Appendix 1.

3.1.2 Our flowchart summary for the land’s history comprises Appendix 2.

3.2 Crown Reversionary Interest

3.2.1 The subject reserve land is vested in Council subject to the Reserves Act 1977. The land is held in trust by

the Council for the purposes for which the reserve is classified.

3.2.2 If the reserve status were to be revoked, the land would become Crown land available for disposal under

the Land Act 1948. Net sale proceeds sharing with Council may apply. Refer later.

3.2.3 If the vesting of the reserve were to be cancelled, the land would cease to be vested in the administering

body and would revest in the Crown subject to the trusts affecting the land and to any valid leases, right or

easements existing at the date of revesting.1

1Turley & Co is related land actions well-experienced.

3.3 Council Adjoining Land

3.3.1 Council-owned or controlled land adjoining the subject land:

(1) Rapanui Mowhanau Bowling Club (WDC #17 – Lot 1 DP 61306)

(2) Kai Iwi Holiday Park (WDC #18 – Part Section 66 Mowhanau Village)

3.3.2 This report should be read in conjunction with our reports for: WDC #17 and #18 per above (1) – (2).

3.3.3 Stages 2-4 would canvas the adjoining land implications and possibly opportunities including for non-

Council adjoining land.

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PROPERTY SUMMARY

4.1 Summary

Name (known as) Part Kai-Iwi 6F2 Block

Address Corner Mowhanau Drive and Rapanui Road, Kai Iwi, Whanganui District

Nature of Property The property is a reserve which appears to be in grazing and Council/ community

uses. The property consists of part of the Kai Iwi Holiday Park, the Rapanui

Mowhanau community hall, entrance to Rapanui Bowling Club and Kai Iwi Holiday

Park, a Water Supply pump station, and approximately half of the land appears to

be used for grazing. The Mowhanau stream is on the adjoining south-easterly

property and part of the subject land appears to be fenced riparian margins. Kai

Iwi Beach is a small coastal village 16 kms from Whanganui CBD by road.

Refer to report cover and section 2 for aerial images and GIS print in Appendix 4.

Use and Access The subject land’s public use is currently: part apparently in use as a holiday park

and community hall, and part used for grazing. Developed with roads, buildings

including a community hall, grassed areas and trees.

Public access is we believe via: Mowhanau Drive.

Zoning Reserves and Open Spaces and Rural General Zone per Whanganui District Plan

Area/s 2.4021 hectares

Appellation/s Part Kai-Iwi 6F2 Block

Title Instrument/s Part Record of Title (ROT): WN34A/359

The title is suitable for land disposal.

The existing title instrument that is a Record of Title is contained in Appendix 3.

Registered Encumbrances ROT: WN34A/359:

o Subject to the Reserves Act 1977

o 753580 Pipeline Certificate pursuant to Section 70 of the Petroleum Act

1937 - 6.8.1968 at 9.57 am

o 890660.1 Certificate under Section 73(3) of the Petroleum Act 1937

varying Certificate 753580 - 1.12.1987 at 11.00 am

o Subject to a right of way over parts marked A and B on DP 61306 created

by Lease B220695.1 - 2.3.1992 at 2:36 pm (Limited as to duration of

Lease)

o 9700229.3 Lease of Area 1-5 DP 471241 Term 33 years commencing on 1

October 2013 and expiring on 31 August 2046 CT 653565 issued -

11.4.2014 at 1:51 pm

Unregistered Leases/ Licences Unknown. To review under Stages 2-4.

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Reserves Act 1977 The land is a Crown derived title Reserve under the Reserves Act vested in Council

as reserve for recreational purposes.

Land Ownership The land is Crown derived Reserve land, vested in Whanganui District Council.

The land was held in private ownership prior to purchase and transfer to the

Crown for a recreation reserve in 1964. We have not electronically searched

records prior to private land title origin (1930), which would be work extension.

The evidence (authority) of the Crown land being administered by Council is

Transfer 587872. In consideration paid to by the Nukumaru Domain Board with

consent from the Minister of Lands pursuant to s50 of the Reserves and Domains

Act 1953, the land is transferred to Her Majesty the Queen for the purposes of a

recreation reserve pursuant to s15 of the Act

By way of classification (recreation reserve), the reserve vested from the Crown

“in trust” in the Waitotara County Council (known as Nukumaru Domain Board)

pursuant to s26A of the Reserves Act 1977.

The Waitotara and Wanganui County Councils merged in 1988 forming a larger

Wanganui County Council.

Whanganui District Council (“the Council”) is the successor to the Wanganui

County Council by virtue of the Local Government (Manawatu-Whanganui Region)

Reorganisation Order 1989 (“the Order”). Instrument 9700229.2, pursuant to

Local Government Reorganisation Order 1989 vesting the land in Wanganui

County Council; changes the name to Wanganui District Council.

If upon Council application, the Minister of Conservation resolved to revoke the

Reserve status the land would be Crown land for disposal by DoC under the Land

Act 1948 (beneficially for the Crown and Council). Refer later.

Our flowchart summary of the land’s history comprises Appendix 2.

Neighbouring Landowner/s Neighbouring landowners are:

(1) Adjoining reserve lands are Crown derived vested in Whanganui District

Council.

(2) Adjoining land used as road/ access (Mowhanau Drive and Rapanui

Road) apparently controlled by Whanganui District Council.

(3) Adjoining land in private ownership (Rapanui Road).

We have not investigated the adjoining road land and non-Council ownership

adjoining land.

Presently there are neighbouring land effects for the subject land. Refer to

adjoining land reports. Stages 2-4 would inform this topic further.

Waterways The land is Crown derived title land. Part 4A of the Conservation Act 1987 would

apply upon Crown disposition of the land requiring a 20 metres marginal strip to

be created and reserved in favour of the public.

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The Mowhanau Stream apparently traverses the south-easterly boundary of the

land and the subject land appears to be fenced riparian margins. The marginal

strip requirement may apply.

Other The land is subject to a designation (D109 for Water Supply Purpose – Mowhanau

Pump Stations and Buildings) per Whanganui District Council planning and map

information.

There are currently no other Stage 1 audit known land matters to record.

Stages 2-4 would address further land topics (including land use options analysis,

risk and opportunities, cultural considerations, etc).

CLIENT INFORMATION

5.1 Client Supplied

5.1.1 Our client supplied subject property information. Where not already independently acquired by us, our

client’s subject property information has been reviewed and considered. We report this as follows:

WDC Timeline with GN

references

This Whanganui District Council item described here is of fringe relevance to Stage

1 findings and can be provided upon request.

WDC Nukumaru Domain

Recreation Reserve Report

This Whanganui District Council item described here is lengthy and of fringe

relevance to Stage 1 findings and can be provided upon request.

WDC Reserve Inventory This Whanganui District Council item described here is lengthy and of fringe

relevance to Stage 1 findings and can be provided upon request.

Whanganui Lands Settlement

Negotiations Trust Hikoi Booklet

The item described here is lengthy and of fringe relevance to Stage 1 findings and

can be provided upon request. This information may be influential to Stages 2-4.

Te Arawhiti Whanganui Land

Settlement – Draft summary of

lakes and reserves investigation

The item described here is of relevance to Stage 1 findings and can be provided

upon request.

Te Arawhiti covering email and

maps for Mowhanau

These items described here are of fringe relevance to Stage 1 findings and can be

provided upon request.

5.1.2 The client provided unique information has been Stage 1 findings by us helpful.

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LAND ACQUISITION DETAILS

6.1 Stage 1 Considerations

6.1.1 The agreed Stage 1 work specification proposed by Turley & Co advised:

The acquisition background and chronology aspects usually only pertain to s40 Public Works Act analysis (if applicable

following initial Stage 1 title derivation confirmation). However, in some rare cases, a Stage 1 land status report/ title

audit may require acquisition background and chronology aspects analysis and findings. This may be necessary if title

derivation could be in any doubt or where Council, iwi or others may need to be further informed about acquisition

circumstances (i.e. further to the titles derivation and ownership).

6.2 Stage 1 Requirements

6.2.1 Appendix 2 contains a title history flowchart reflecting background information including:

Most Historical Land Record/s 1930 Certificate of Title 415/48 records the land being transferred out of private

ownership to Her Majesty the Queen in 1964.

We have not electronically searched records prior to private land title origin

(1930), which would be work extension.

Land Transferred By Transferred by Gordon Leonard Christie and Thomas Murray Berrett to Her

Majesty the Queen (the Crown) on 6 March 1964, to be administered by the

Nukumaru Domain Board (Waitotara County Council).

Land Transferee/ Vestee Vested by The Crown (Her Majesty the Queen) in Council by way of classification

pursuant to s26A Reserves Act 1977.

Investigation Required We have identified electronically searchable records since private land title origin

(1930). The Council/s, Libraries and/ or Archives New Zealand may have further

records. There are no further Stage 1 acquisition background and chronology

study requirements.

Investigation of the land’s history prior to 1930 (private land title origin date),

could be a difficult task and would be extension work.

6.2.2 Our Stage 1 investigations are limited to electronically searchable public records to the date the land came

into public ownership. Its history prior is outside the Stage 1 scope.

S40 PUBLIC WORKS ACT 1981

7.1 s40 Considerations

7.1.1 As a gazetted reserve under the Reserves Act 1977 the land is not subject to s40 Public Work Act 1981.

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RESERVES ACT 1977

8.1 Reserves Act 1977

8.1.1 The land is a gazetted reserve under the Reserves Act 1977.

8.1.2 The Reserves Act 1977 is administered by the Department of Conservation. The legislation provides for the

acquisition of land for reserves, and the classification and management of reserves (including leases and

licences), and reserve land actions. The Reserves Act 1977 is a large statute and complex to navigate.

8.1.3 Any significant decision making about the land should involve discussion with DoC.

8.1.4 Reserves Act statutory obligations and restrictions:

http://www.legislation.govt.nz/act/public/1977/0066/latest/DLM444305.html

8.1.5 Department of Conservation information:

https://www.doc.govt.nz/about-us/our-role/legislation/reserves-act/

8.1.6 Subject to the particulars of the statute Council may undertake the following land actions:

- Grant lease or licence

- Create easements

- Reclassify the reserve

- Appoint a voluntary organisation to control and manage a reserve

- Appoint a board to control and manage a reserve

- Apply to DoC to revoke the reserve status

8.1.7 Local authorities since 12 June 2013, have a range of Reserves Act 1977 revised delegated authorities for

reserve land. These delegations differ according to the status of the reserve1.

1Refer to Turley & Co for more information.

8.2 Gazetted Status

8.2.1 The subject land is a gazetted reserve and is classified: Recreation Reserve (section 17 of the Reserves Act).

The main purpose of these reserves is the provision of areas for recreation and sporting activities. This is to

provide for the physical welfare and enjoyment of the public and for protection of the natural environment

and beauty.

8.2.2 Reserves by application to DoC and gazettal action can be reclassified (the purpose can be changed).

8.3 Use Implications

8.3.1 Whilst the land remains as a reserve the outlined obligations and use restrictions would apply.

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8.4 Reserve Revocation

8.4.1 Council could apply to DoC to have the land’s reserve status revoked. Reserves Act land use obligations and

restrictions would cease to apply if the Department of Conservation for the Minister of Conservation

confirmed revocation.1

8.4.2 Because the land is a Crown derived title Reserve the land’s disposal would be by DoC for the Crown and

beneficially on behalf of the Crown and Council (i.e. mostly likely would be net sales proceeds sharing 50/50

subject to DoC approval). Refer to our guide contained in Appendix 1.2

1Turley & Co is reserve revocation process well-experienced. 2Turley & Co is former reserves disposal process well-experienced.

8.4.3 It would be unusual for the Crown/ DoC to initiate revocation that would normally only occur for Crown

reserve land managed by DoC, or in response to a local authority revocation request.

8.4.4 s25 of the Reserves Act 1977 details the effects of reserve status revocation including: specific requirements

for land gifted for the purposes of a reserve, including land offer back to the former owner/s or his or her

descendants/ personal representative. s25 (3) (a) references Māori Land:

http://www.legislation.govt.nz/act/public/1977/0066/latest/DLM444648.html

8.4.5 We would advise further on the above if requested.

8.5 Iwi Considerations

8.5.1 The Reserves Act 1977 cites Māori, mana whenua and iwi:

(a) s12 Minister’s powers: Acquiring/ taking of Māori land by the Crown for the purposes of a reserve

requires the consent of the Minister of Māori Affairs.

(b) s25 Effect of revocation of a reserve or change of classification or purpose (refer to 8.4.3 prior).

(c) s35 Appointing trustees to control and manage a reserve vested in Crown: The Minister may appoint

any trustees or any Māori Trust Board to control and manage the reserve for the purpose of its

classification.

(d) s38 Control and management of land that is not a reserve: With agreement of the owner, trustee or

controlling authority, the Minister or administering body with consent of the Minister; may control land

that is not a reserve including any Māori reservation land.

(e) s39 Provision of technical assistance to administering body: The Minister may provide assistance to any

person, trustee, Māori Trust Board or Māori incorporation owning or appointed under s38(2) for land

that is not a reserve.

(f) s40 Functions of administering body: Which specifically mentions the Whanganui River.

(g) s46 Grant of rights to Māori: The Minister may by notice in the Gazette, grant Māori the right to kill

birds within a scenic reserve which immediately before the reservation or taking thereof was Māori

land, and where any scenic or historic reserve includes any ancestral burial grounds of Māori, the

Minister may grant the right to bury or inter the remains of deceased Māori in a place to be specified

therein.

(h) s77A Nga Whenua Rahui kawenata: The Minister may for Māori land or Crown land held under Crown

lease by Māori, agree with the owner or lessee for a Nga Whenua Rahui kawenata (covenant) to

provide for the management of the land (in perpetuity or for a specific term with reviews at agreed

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intervals of not less than 25 years). Every such Nga Whenua Rahui kawenata shall run with and bind

the land and shall be deemed to be an interest in land.

(i) s85 Minister may authorise expenditure of money on land that is not a reserve: including Māori

reservation.

(j) s86 Payment of rates on Māori reservations: The Minister may, by agreement with the body corporate

or the trustees, contribute towards the payment of the whole or part of any rates.

(k) s119 Notices: Subject to section 181 of Te Ture Whenua Māori Act 1993, a notice required by this Act in

relation to Māori land owned in multiple ownership, to be given to any person may be sent by

registered post to the last-known place of abode or business of that person, and shall be deemed to

have been delivered when in the ordinary course of post it would be delivered.

8.5.2 The above considerations may apply for the subject land. We would investigate the effects and provide

property advisory if requested.

8.5.3 Council would potentially acquire specific legal advisory in regard to Reserves Act implications for the

subject land.

CO-GOVERNANCE

9.1.1 Council could consider co-governance of the land with Māori as tangata whenua or other members of the

community. This could be via a board or trust under the provisions of the Reserves Act 1977 (refer prior).

9.1.2 Co-governance proposals and actions would be a matter for Council legal advisory and policymaking.1

9.1.3 Co-governance restrictions and requirements would apply under the statutes:

- Local Government Act 2002

- Reserves Act 1977 (unless the reserve was revoked)

- Other statutes and law

1Turley & Co if invited could contribute to co-governance frameworks design, ideas development, challenges resolution,

land use strategies and related property advisory.

INVESTIGATIONS SCOPE

10.1 Investigation Process

10.1.1 Stage 1 title investigations by us included:

(a) Researched a copy of the Record of Title Reserve Gazettal (appended).

(b) Traced and analysed electronically searchable and findable historical land records to ascertain

landownership history.

(c) Received or requested and acquired Council and Crown (Te Arawhiti) property file knowledge or data

(and correspondence).

(d) Accessed our subscriber services and Council website public land records.

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10.1.2 We have further:

(e) Determined the land’s acquisition history since 1930 (private land title origin).

10.2 Investigation Reference

10.2.1 We have referenced relied upon information including:

(a) LINZ title instrument search data (including gazettes).

(b) LINZ cadastral land data and public record aerial photography (and GIS data).

(c) Google streetview review for sense of the property.

(d) Whanganui District Plan current online planning maps.

(e) Council supplied property information.

(f) Reserves Act 1977.

10.2.2 Appendix 3 contains the key evidence on which we have relied. We retain further land information.

10.2.3 We cannot rule out the possibility of unavailable searches or not readily findable, or lost records.

10.2.4 Stages 2-4 further discovery and analysis would inform property matters beyond the scope of our Stage 1

findings.

AFFIRMATIONS

11.1 Recitals

11.1.1 Turley & Co is retained by Whanganui District Council for the purposes of professionally independent and

unbiased property investigations, consultancy and advisory.

11.1.2 The firm has no interest in the subject land. Turley & Co and its staff have in all respects acted impartially

and have no conflicts of interest.

11.1.3 The authors of the report have undertaken a thorough and objective process. To the best of our knowledge

the work and findings reported herein are professionally robust and reliable (if this report is not marked

draft).

LIMITATIONS

12.1 Reliance

12.1.1 This report is for the purposes of Stage 1 title derivation, ownership history and statutory land use advisory.

The report may be relied upon by Whanganui District Council and no other party or for any other purpose.

12.1.2 The report is specific to the subject property. For another property, a unique investigation would be

necessary. Properties are never physically or legally the same, and background circumstances usually differ.

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12.1.3 Changes for a property are to be expected over time. These changes may include property legal (including

title, planning, tenancy, statutory and common law); property use and physical changes; economic and

market changes. These changes could materially impact our findings and advisory.

12.1.4 Statutorily affected or entitled parties may alter by death or land ownership succession (and by law

changes).

12.1.5 Please refer to Turley & Co before relying on this report and its contents after more than three months.

Parties relying on the information herein otherwise do so entirely at their own risk.

12.1.6 Our no change affirmation or report updates for currency, may involve minor work attendances for good

certainty and restated reliability.

12.2 Limitations General

12.2.1 We have relied on public land information, documents and property information supplied by Whanganui

District Council and others. Turley & Co does not accept responsibility for public land information

deficiency or inaccuracy, or information supplied by others deficiency or inaccuracy.

12.2.2 Given an historical land misdealing or lost land title record our findings and advice could prove inaccurate.

This includes title or other documentation being discovered by Council/ LINZ/ DoC or another party, which

Turley & Co or Council does not currently possess. This is a normal property information risk although

occurrence rare.

12.2.3 Our report and the advisory herein are subject to Turley & Co Universal Advisory Limitations and

Disclaimers appended (Appendix 4).

12.3 Limitations Unique

12.3.1 Our Stage 1 advisory is contingent upon the unique matters:

(a) Conditions or limitations stated in the body of this report and appended information.

(b) All advice Turley & Co has provided concerning the subject land and any related project/s including:

- Stages 2-4 advisory (if any).

12.3.2 Council’s community and iwi co-governance policies, or related requirements in law; is an advisory topic

beyond our Stage 1 brief. Please refer to Turley & Co for further assistance.

SIGNOFF

13.1.1 Please do not hesitate to contact the writers if you have any queries.

13.1.2 Thank you for your instructions.

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Co-authored Co-authored

Pat Turley

Property Analyst | Director Reg. Valuer, Reg. Prop. Consultant, BBS, ANZIV, SPINZ, AREINZ,

LINZ Accredited

[email protected] | 021 33 33 93

Nikki Whelpton

Property Analyst | Valuer BBS (Valuation & Property Management) | PINZ

member

[email protected] | 022 089 1908

Assisted

Dayna Campbell

Property Analyst | Projects Support BBS (Valuation & Property Management) | PINZ member

[email protected] | 021 226 3831

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APPENDIX 1 – COUNCIL LAND TITLE STATUS GUIDE

Refer overleaf that is Turley & Co unique IP since 2007:

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Offices 116 Te Mata Mangateretere Road, Havelock North, Hawke's Bay | Post RD 10, Hastings 4180

Company Turley & Co Ltd | P +64 (6) 650 3569 | E [email protected] | W turley.co.nz

Backing Clean Rivers Since 2006 | Trustee Maraetōtara River Restoration | maraetotaratreetrust.co.nz

TCL © 1998-2020 | Working for Councils NZ-wide

Council Land Title Status Guide | Audits Outset Crucial

2007 Guide by Turley & Co© | Reprinted 8 June 2020

Since 1998, Turley & Co is a well-experienced Council and Crown public land rationalisation advisor, and competent property actions manager including disposals-

acquisitions. Turley & Co reliably determines title Status 1-4 with detailed advisory (for leasing, subdivision, development, disposal, reserve reclassification, etc). Safely per

the Reserves Act, Public Works Act, Land Act, Local Government Act, etc, coupled with astute market-related property strategy advisory.

Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide for 22-years, for predominantly public land clients, including former Reserves disposal.

Copyright of Turley & Co Ltd (TCL). All rights reserved 1998-2020. Not for reliance, distribution or reproduction without prior written consent of a Turley & Co director.

Property Title Derivation | Origin

Council Title Land Not Crown Derived

Crown Derived Title Administered by Council

Crown Land Allocated or Unallocated

Not Council-owned or vested land. Reserve or non-reserve either

administered by Council or wrongly held. Land may be affirmed to LINZ or DoC or

other. For a DoC vested property, Council may apply to vest the land in

Council per s26. Revocation and possibly disposal per Title Status 3.

Council Vested Reserve Land per Reserves Act 1977

s40 Public Works Act does not apply.

Council initiated revocation and possibly disposal partnering with the Crown

under DoC guidelines. Land sale is by the Crown (Māori Protect. Mech., s52-54 Land Act), with possibly Crown and Council net sale proceeds sharing.

Reserve Land per Reserves Act 1977

s40 Public Works Act does not apply.

Disposal by Council following possibly DoC reserve status revocation (sale by

tender or other method).

100% sale proceeds to Council.

Not Reserve Act 1977 Land

s40 Public Works Act may apply.

Disposal by offerback at market value per S40 or market or off-market sale by Council (tender or other method with

real estate agency if needed).

Or per s116 PWA or s342 & 345 LGA if stopped road.

100% sale proceeds to Council. TCL Title Status 1 TCL Title Status 2 TCL Title Status 3 TCL Title Status 4

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APPENDIX 2 – LAND HISTORY FLOWCHART

Part Kai Iwi 6F2 Block

Most historical land title record for land prior to coming into

public ownership is:

Certificate of Title Volume 415 Folio 48

6 acres more or less being situate in Block XV of the Nukumaru

Survey District being the Native Land Court Subdivision known as

Kai Iwi 6F2.

Land in private ownership, records Transfer 587872 of balance

of the land to Her Majesty the Queen for the purposes of a

recreation reserve subject to the Reserves and Domains Act

1953 – March 1964.

Part of land taken for road:

1939: Proclamation 2793 taking 9.13 perches for road – 6F2, land

area reduced to 5 acres 3 roods and 30.87 perches.

Memorandum of Transfer 587872 – March 1964

5 acres 3 roods and 30.87 perches being situate in Block XV of

the Nukumaru Survey District being part of the Maori Land Court

Subdivision known as Kai Iwi 6F2.

In consideration of £1,800 paid by Nukumaru Domain Board with

consent of the Minister of Lands pursuant to section 50 of the

Reserves and Domains Act 1953, land transferred to Her Majesty

the Queen for the purposes of a recreation reserve pursuant to

section 15 of the said Act. Crown land administered by

Nukumaru Domain Board (Waitotara County Council).

Interest: 890660.1 Variation of terms of Pipeline Easement Cert 753580 (redefining route)

Note:

By Order in Council – published in NZ Gazette 1895 page 1250

Pursuant to section 12 of the Public Domains Act 1881, powers

were delegated to the Waitotara County Council as the

Nukumaru Domain Board.

Part NZ Gazette 1981 page 2924 (GN 467464.2)

2.4050 hectares, more or less, being part Kai Iwi 6F2 situated in

Block XV Nukumaru Survey District, balance of CT 415/48 (M. L.

1486, SO Plan 20191).

Pursuant to the Reserves Act 1977 (Part Nukumaru Domain

Recreation Reserve), reserve classified as a reserve for

recreation purposes. Crown land administered by Nukumaru

Domain Board (Waitotara County Council).

Note:

By Part Gazette 1981 page 1205 (unregistered)

We note that the land was classified in this unregistered Gazette

of April 1981, and in effect reclassified and registered in GN

467464.1 also in 1981.

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Part Kai Iwi 6F2 Block land history continued …

Section 26A Reserves Act 1977

By operation of law pursuant to Section 26A of the Reserves Act,

the recreation reserve is vested from the Crown “in trust” in the

Waitotara County Council.

Transfer 587872 cancelled and new CT issued:

CT WN32B/218 – March 1988

Being part Kai Iwi 6F2 (2.4050 ha) and Section 66 Mowhanau

Village (2.8859ha) situated in Block XV Nukumaru Survey District

(total area 5.2909 hectares more or less).

Title in the name of Waitotara County Council as a reserve for

recreational purposes subject to the Reserves Act 1977.

Interests:753580 Pipeline Easement Certificate under Section 70 of the Petroleum Act 1937

890660.1 Variation of terms of Pipeline Easement Cert 753580 (redefining route)

Land subdivided

Following subdivision with the deposit of DP 61306 in April 1989,

the reserve lands in WN32B/218 (subsequently cancelled), were

subdivided and issued in two Computer Freehold Registers

(WN34A/358 for Lot 1 DP 61306 and WN34A/359 for the

balance).

Refer to Rapanui Mowhanau Bowling Club report (WDC #17 – Lot

1 DP 61306).

Current Title: WN34A/359 – April 1989

Being Part Kai Iwi 6F2 Block (2.4021ha) and Part Section 66

Mowhanau Village (2.5941 ha) situated in Block XV Nukumaru

Survey District (total area 4.9962 hectares more or less).

Title in the name of Wanganui District Council as a reserve for

recreational purposes.

The land is vested in Whanganui District County Council. The

Crown has a reversionary interest in the land. Refer to 3.2.

Interests: Subject to the Reserves Act 1977, 753580 Pipeline Certificate pursuant to Section 70

of the Petroleum Act 1937 - 6.8.1968, 890660.1 Certificate under Section 73(3) of the

Petroleum Act 1937 varying Certificate 753580 - 1.12.1987, Subject to a right of way over

parts marked A and B on DP 61306 created by Lease B220695.1 - 2.3.1992 (Limited as to

duration of Lease), 9700229.3 Lease of Area 1-5 DP 471241 Term 33 years commencing on 1

October 2013 and expiring on 31 August 2046 CT 653565 issued - 11.4.2014

Subsequent territorial local body succession

The Waitotara and Wanganui County Councils merged in 1988

forming a larger Wanganui County Council.

Whanganui District Council is the successor to the Wanganui

County Council by virtue of the Local Government (Manawatu-

Whanganui Region) Reorganisation Order 1989 (“the Order”).

Instrument 9700229.2 pursuant to the Local Government

Reorganisation Order 1989 vesting the land in Wanganui County

Council, changes the name to Wanganui District Council.

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APPENDIX 3 – TITLE INSTRUMENT EVIDENCE

Refer overleaf:

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RECORD OF TITLEUNDER LAND TRANSFER ACT 2017

FREEHOLD

Original Registered OwnersWanganui County Council

Estate Fee Simple

Area 4.9962 hectares more or less

Legal Description Part Kai-Iwi 6F2 Block and Part Section

66 Mowhanau Village

Purpose Reserve for recreational purposes

Date Issued

Prior ReferencesWN32B/218

Identifier WN34A/359Land Registration District Wellington

18 April 1989

Constituted as a Record of Title pursuant to Sections 7 and 12 of the Land Transfer Act 2017 - 12 November 2018

Historical Search Copy

Interests

Subject to the Reserves Act 1977

753580 Pipeline Certificate pursuant to Section 70 of the Petroleum Act 1937 - 6.8.1968 at 9.57 am

890660.1 Certificate under Section 73(3) of the Petroleum Act 1937 varying Certificate 753580 - 1.12.1987 at 11.00

am

B220695.1 Lease granting a right of way over parts herein marked A and B on DP 61306 created by said Lease -

2.3.1992 at 2.36 pm (Limited as to duration of Lease)

9587142.1 Departmental dealing correcting the memorial for easement created by Lease B220695.1 B220695.1

Lease granting a right of way over parts herein marked A and B on DP 61306 created by said Lease to Subject to

a right of way over parts marked A and B on DP 61306 created by Lease B220695.1 - 2.3.1992 at 2:36 pm (Limited

as to duration of Lease) - 29.11.2013 at 9:39 am

9700229.2 Application pursuant to Local Government Re-Organisation Order 1989 vesting the within land in

Wanganui District Council - 11.4.2014 at 1:51 pm

9700229.3 Lease of Area 1-5 DP 471241 Term 33 years commencing on 1 October 2013 and expiring on 31 August

2046 CT 653565 issued - 11.4.2014 at 1:51 pm

Transaction IdClient Reference WDC 18

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Identifier WN34A/359

Transaction IdClient Reference WDC 18

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APPENDIX 4 – OTHER INFORMATION Please refer overleaf:

(a) Aerial image and locality

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CoreLogic NZ

0 10 20 30 40 50 605 MetersOther Selected PropertiesListed PropertiesSold PropertiesSubject Property

© Copyright 2020. CoreLogic NZ Limited (CoreLogic) and its l icensors are the sole and exclusive owners of this image.

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CoreLogic NZ

0 70 140 210 280 350 42035 MetersOther Selected PropertiesListed PropertiesSold PropertiesSubject Property

© Copyright 2020. CoreLogic NZ Limited (CoreLogic) and its l icensors are the sole and exclusive owners of this image.

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APPENDIX 5 – UNIVERSAL ADVISORY LIMITATIONS & DISCLAIMERS

Refer overleaf:

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TCL Universal Advisory Limitations & Disclaimers

Report & Advisory User Notice

Turley & Co Ltd (TCL) advisory limitations advice is standard property advisory practice. This is good practice aimed at protecting all parties.

Reporting limitations advisory is recommended by our professional bodies.

Use of and reliance on Turley & Co advisory is strictly conditional on reader/ user/ clients unreserved acceptance of the following standard

advisory polices of TCL (Turley & Co Ltd). The payment of a TCL fees account for a body of work confirms a TCL/ client and report user(s)

contract in this matter.

TCL Universal Advisory Limitations & Disclaimers herein apply to any future work by TCL for the advisory addressee parties unless superseded

by substitute written agreement.

Purpose

The advisory is prepared for the specific purpose stated. Any party that relies upon advisory information for an alternative purpose without

reference to TCL, does so at its own risk.

Confidentiality | Reliance

Turley & Co’s and its staff responsibility in connection with services is limited to the client to whom it is addressed and parties for whom

reliance is expressly affirmed. TCL and its staff disclaim all responsibility and accept no liability to any other party.

Publication

Neither the whole nor any part of the advisory or any reference to it may be included in any published document, circular or statement

without the prior written approval of a director of Turley & Co Ltd as to the form and context in which it may appear.

Reliance Period

Over time changes will impact the currency of advisory. Property changes may include:

- Legal (title, town planning, lease, statutory, common law).

- Physical (improvements, deterioration, information discovery).

- Locality, environmental, neighbourhood changes.

- Economic and market changes.

We strongly recommend that before any action is taken involving future acquisition, disposal, borrowing, restructuring or any other

transaction or decision for real property interest(s) under consideration, parties relying on dated TCL advisory refer back to TCL.

TCL advisory currency confirmation might involve modest professional attendances (time costs) in return for reaffirmed professional

reliability.

Forecasts

Considerable professional effort is made to ensure the soundness and accuracy of opinions, information, and the basis for any forecasts.

Forecasts should be regarded as a general guide only. TCL can accept no liability for erroneous predictions as no person can accurately

predict the future.

Registrations

Turley & Co advisory is on the basis the real property interest(s) under consideration are free of detrimental or beneficial registrations,

caveats, mortgages, charges, financial interests or liens, and that there are no memorials, encumbrances, restrictions or other impediments

of an onerous or deleterious nature that impact the real property interest(s) other than those stated by TCL. Such other registrations may

include Wahi Tapu registrations and Historic Places Trust registrations.

Documentation Reliance

Sources

Information is generally obtained from a search of records and examination of documents or by enquiry to Government Departments or

Statutory Authorities and Turley & Co’s client.

Where information has been sourced from or supplied by another party that ought to be reliable, the information has been adopted as

correct. TCL disclaims responsibility for information deficiencies or inaccuracies where information supplied by another party has been

adopted.

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Audit

TCL does not normally inspect all leases or dealings on titles. TCL recommends that competent solicitor advice be obtained. TCL assumes,

unless informed to the contrary and reported, that all documentation is satisfactorily drawn and that there are no encumbrances,

restrictions, easements or unknown outgoings of a material nature that would have an effect on the value, marketability or potential uses of

the real property interest(s) under consideration.

Incomplete Records

In the event of an historical land misdealing or lost land title record, there is a possibility that property history or status matters represented

by TCL could prove to be inaccurate. This uncertainty revolves around documentation or a land record being future discovered by a Council,

LINZ, DoC or another party which the Crown or a TLA did not possess at the time of advisory. This is a normal land information risk. Turley &

Co Ltd can accept no responsibility and disclaims all liability in such circumstances.

Title Boundaries

TCL does not survey properties and cannot assume responsibility in connection with such matters. Unless otherwise stated it is assumed

that all improvements lie within the title boundaries and that no neighbouring property improvements encroach on the subject land(s).

Outstanding Debts

In the case of buildings where works are in hand or have recently been completed, TCL does not normally make allowance for any liability

already incurred but not yet discharged in respect of completed works or obligations in favour of contractors, sub-contractors, project

managers or any members of the professional, or design team.

Resource Planning & Statutory

Information on town/ resource planning/ zoning is often obtained verbally from the local planning authority and if assurance is required, TCL

recommends that verification from the relevant authority be obtained that confirms:

- The position is correctly stated by TCL.

- The property is not adversely affected by any other decisions made, or conditions prescribed by Public Authorities.

- That there are no outstanding statutory notices.

- No resource consent applications are pending.

TCL’s advice is prepared on the basis that the property/premises (and any works thereto) comply with all relevant statutory regulations

including the Building Act 2004 and the requirements of Territorial Authorities. Where we have obtained a Land Information Memorandum

(LIM) from the Territorial Authority, we comment on this within our reporting/advisory. Where we have not obtained a Land Information

Memorandum (LIM) advisory is subject to there being no outstanding requisitions or other Council information indicating significant land

impediments or contingent liabilities for owners or users of the land.

Measurements

Unless otherwise stated all property measurements are in conformity with the Guide for the Measurement of Rentable Areas issued by the

Property Council and PINZ. Multi-tenancy properties are not normally measured as part of the valuation process although check

measurements may be taken. For such properties rentable areas are normally supplied by the property owner or property manager and

adopted as measurement standards correct.

Improvements

General: While in the course of inspection due care is taken to note building defects, no structural survey is made and no undertaking is

given about the absence of water ingress, leaky building syndrome, rot, termite or pest infestation, deleterious substances such as asbestos

or calcium chloride, methamphetamine or other hidden defects. We can give no guarantee as to the foregoing or outstanding requisitions in

respect to the building(s) or land(s) under consideration.

Structural & Pest: No enquiries in respect of any property, or of any improvements erected thereon, are made for any sign of timber

infestation, asbestos or other defect, whether latent, patent, or structural.

Structural: We undertake a visual inspection in respect of any building assessed, but must advise that we usually do not commission

structural surveys or tested any of the services and are therefore unable to confirm that these are free from defect. We note further that we

do not inspect unexposed or inaccessible portions of any building and are therefore unable to certify that these are free from defect.

Any elements of deterioration apparent during our consideration of the general state of repair of building(s) has been noted or reflected in

our findings. We are however, unable to give any warranty as to structural soundness of any building and assume in arriving at our findings

that there are no structural defects or the inclusion of unsatisfactory materials.

Seismic Capacity: Unless otherwise stated, we rely on client or client expert(s) advices in the matter of building structures seismic

performance status and %NBS rating. If this information is proven inaccurate, our advisories or conclusions may not hold and these may

require reconsideration and adjustment.

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Services: In preparing our advisory it is assumed that items such as lifts, hot and cold water systems, electrical systems, air conditioning or

ventilating systems and other devices, fittings, installations or conveniences as are in the building are in proper working order and

functioning for the purposes for which they were designed, and conform to the current building, fire and government regulations and codes.

TCL offers no warranties in these respects.

Tenants

Enquiries as to the financial standing of actual or prospective tenants are not normally made unless specifically requested. Where properties

are assessed or valued with the benefit of lettings it is therefore assumed that the tenants are capable of meeting their obligations under the

lease and that there are no arrears of rent or undisclosed breaches of covenant, and that the advised and stated rent is the effective rent

without offset or undisclosed inducement(s).

Goods & Services Tax (GST)

Non-Residential: Capital and rental valuations and rent analyses are (unless otherwise stated) carried out on the basis that the valuation is

plus GST (if any).

Residential: Capital and rental valuations and rent analyses of residential property are (unless otherwise stated) carried out on the basis that

the valuation includes GST (if any).

Contamination

Substances such as asbestos, methamphetamine, other chemicals, toxic wastes or other potentially hazardous materials could, if present,

adversely affect the value or use potential of a property. TCL findings and advisory are on the basis that there is no material on or in the

property that would cause loss in value or diminution of property use potential. No responsibility is assumed for any such conditions and the

advisory recipient is advised that the TCL advisory author is not qualified to detect such substances, quantify the impact on values or

estimate the remedial cost.

While due care is being taken to note any contamination liability, our investigations are undertaken for the stated advisory use purposes

only, and do not constitute an environmental audit. Unless otherwise stated, no account is taken of the effect on value or property use

potential due to contamination or pollution.

Building Act 2004. Health and Safety at Work Act 2015 and Evacuation of Buildings Regulations 2006. Disabled Persons Community Welfare Act

1975

Unless otherwise stated, our advice is on the basis that the property complies with the Building Act 2004, Health and Safety at Work Act

2015, Evacuation of Buildings Regulations 1992, and Disabled Persons Community Welfare Act 1975 or that the legislation has no significant

impact on the value or use potential of the property.

Legal Advisory

TCL staff are not qualified to offer legal analysis or legal advisory. Clients must acquire expert legal advice in all matters of legal

interpretation/s and law before adopting for any purpose TCL advisory. Any legal advice obtained by clients concerning TCL advisory must

be provided to TCL for possibly its related advisory adjustment/s. TCL disclaims legal advisory matters responsibility.

Liability Limit Turley & Co and Staff

Turley & Co Ltd (TCL) Professional Indemnity (PI) insurance cover is presently limit NZD$1,000,000. The TCL PI insurance cover level is

periodically reset, and any changed PI cover level shall apply for limitations of indemnity under this clause. Parties relying upon the findings,

recommendations and work of TCL unreservedly accept and contract that the prevailing TCL PI insurance cover level will be the absolute

limit of the combined professional and civil liabilities of TCL, its directors, shareholders and staff in any event. The payment of a TCL services

fees account confirms a TCL and client contract in this matter.

Related Advisory

TCL advisory is subject to all other advice provided by TCL past and future in connection with the subject property(s) or project(s). Please

refer to TCL for confirmation of advisory since or prior advisory if there is any uncertainty.

Copyright & Confidentiality

TCL © Copyright 1998-2020. Turley & Co work is confidential to the addressee and subject to the copyright of Turley & Co Ltd (TCL). All

rights reserved. TCL offer materials and advisory/ reporting may not be shared, circulated, adopted, reused or disseminated in any form

without the prior written consent of a director of Turley & Co. Turley & Co retains ownership of all market transactional data published to a

client and all TCL unique material and Intellectual Property (IP).

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Fees Reliance

No party is entitled to rely on any aspect of TCL advisories until TCL’s fees account/s for a body of work have been paid in full. TCL reserves

the right in the case of fees non-payment in full or fees dispute, to notify its client and thereafter third parties including financiers or insurers

that they may not rely on the work deliveries or advisory of TCL. Third parties entitled to rely on TCL advisory unreservedly accept the

foregoing advices and they are bound by terms of engagement contracted with our client/s.

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