2017-10-13 Special Meeting

SPECIAL MEETING AGENDA                                                          13 OCTOBER 2017


4.7. Financial Contribution by NPA
    NPA have agreed to fund one-third of the acquisition costs and also to make a contribution
      towards the rehabilitation of the PLA pine area once Council becomes trustee of the
      Conservation Park.
    They propose to provide this funding over a period of time. For the acquisition component,
      they will provide $500,000 upon the signing of the agreement, and $125,000 per year for four
      years with the balance of their one-third contribution being paid the following year (approx.
      $166,000).
    For the rehabilitation component, they propose to contribute up to $125,000 per year for 5
      years to assist with rehabilitation costs. Those contributions will commence the year
      following their final payment towards the acquisition component. NPA have also indicated
      that they would like to offer to further assist with rehabilitation via community working bees
      to undertake replanting. This is in addition to their financial contribution.
    All up, NPA proposes to contribute approximately $1.166M towards acquisition (spread over
      6 years) and up to $625,000 toward rehabilitation (spread over 5 years).
    A separate funding deed will be required between Council and NPA.


5.    Contractual Arrangements

To facilitate this project, there is a two tiered approach proposed:

1)    Memorandum of Understanding (MOU)
A MOU is proposed to set out in general terms how the parties will progress this project and its
general principles. An MOU is not legally binding but sets out the intention of the parties to work
towards an outcome. This is the stage we are presently at and this report proposes that Council
enter into an MOU to progress this to the next stage. The parties to this MOU will be Council, NPA,
HQP and the State. A copy of the current version of the draft MOU is provided at Attachment 2
to this report. As at the date of this report, two of the three State Government Departments, Council
and NPA have reviewed and agreed with the draft MOU. We are still awaiting a response from
DAF. HQP will provide feedback prior to the Special Council meeting and the CEO will provide an
update at that time.

2)    Transactional Documents
If Council agrees to proceed with this project "in principle", we would then enter into detailed
negotiations regarding the transactional documentation to enable this project to proceed. Those
documents where Council is identified as a party would be referred back to Council for a decision
before proceeding. The transactional documents would comprise of the following:
a)    A deed of variation to HQP’s PLA licence for their Queensland PLA areas. This will be an
      agreement between HQP and the State (via DAF). It will include:
      i.     An obligation for HQP to follow the Guidelines For The Management Of Conservation
             Handback Plantations, 2010 to maximise opportunities for natural regeneration in the
             harvested areas.
      ii.    HQP forgoing their right to harvest any hardwood areas.
      iii.   HQP being obliged to complete the harvest of all existing pine areas within 5 years.
      iv.   HQP surrendering the PLA for the localities of Yurol and Ringtail forest within 5 years.
b)    A deed between Council, NPA and the State (via E&HP and NP&SR) which addresses
      funding and other obligations associated with the project. It will include:
      i.     How and when Council and NPA are to provide 2/3 of the funding for the acquisition.


                                                                                       Page 9 of 48