sec.236Exceptions for valuable non-current asset contracts

### sec.236 Exceptions for valuable non-current asset contracts Subject to subsections (2) to (5) , a local government may dispose of a valuable non-current asset other than by tender or auction if— the valuable non-current asset— was previously offered for sale by tender or auction but was not sold; and is sold for more than the highest tender or auction bid that was received; or the valuable non-current asset is disposed of to— a government agency; or a community organisation; or for the disposal of land or an interest in land— the land will not be rateable land after the disposal; or the land is disposed of to a person whose restored enjoyment of the land is consistent with Aboriginal tradition or Island custom; or the disposal is for the purpose of renewing the lease of land to the existing tenant of the land; or the land is disposed of to a person who owns adjoining land if— the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and there is not another person who owns other adjoining land who wishes to acquire the land; and it is in the public interest to dispose of the land without a tender or auction; and the disposal is otherwise in accordance with sound contracting principles; or all or some of the consideration for the disposal is consideration other than money, for example, other land given in exchange for the disposal, if— it is in the public interest to dispose of the land without a tender or auction; and the disposal is otherwise in accordance with sound contracting principles; or the disposal is for the purpose of a lease for a telecommunication tower; or the disposal is of an interest in land that is used as an airport or for related purposes if— it is in the public interest to dispose of the interest in land without a tender or auction; and the disposal is otherwise in accordance with sound contracting principles; or for the disposal of a valuable non-current asset, other than land, by way of a trade-in for the supply of goods or services to the local government— the supply is, or is to be, made under this part; and the disposal is, or is to be, part of the contract for the supply; or for the disposal of a valuable non-current asset by the grant of a lease—the grant of the lease has been previously offered by tender or auction, but a lease has not been entered into; or none of paragraphs (a) to (e) apply and the local government considers the disposal is— in the public interest; and otherwise in accordance with the sound contracting principles. An exception mentioned in subsection (1) applies to a local government disposing of a valuable non-current asset only if, before the disposal, the local government has decided, by resolution, that the exception may apply to the local government on the disposal of a valuable non-current asset other than by tender or auction. If a local government makes a resolution deciding that the exception mentioned in subsection (1) (f) may apply to the local government on the disposal of a valuable non-current asset other than by tender or auction— the resolution must state— why the local government considers the disposal of the asset other than by tender or auction is in the public interest; and how the disposal is otherwise in accordance with the sound contracting principles; and the local government— must, within 5 business days after making the resolution, give a copy of the resolution to the Minister; and must not dispose of the asset as permitted by the exception within 56 days after making the resolution. A local government may only dispose of land or an interest in land under this section if the consideration for the disposal would be equal to, or more than, the market value of the land or the interest in land, including the market value of any improvements on the land. However, subsection (4) does not apply if the land or interest in land is disposed of under subsection (1) (b) , (1) (c) (ii) or (1) (f) . For subsection (4) , a written report about the market value of land or an interest in land from a valuer registered under the Valuers Registration Act 1992 who is not an employee of the local government is evidence of the market value of the land or the interest in land. s 236 amd 2013 SL No. 10 s 9 ; 2014 SL No. 290 s 26 ; 2025 SL No. 161 s 24 (sec.236-ssec.1) Subject to subsections (2) to (5) , a local government may dispose of a valuable non-current asset other than by tender or auction if— the valuable non-current asset— was previously offered for sale by tender or auction but was not sold; and is sold for more than the highest tender or auction bid that was received; or the valuable non-current asset is disposed of to— a government agency; or a community organisation; or for the disposal of land or an interest in land— the land will not be rateable land after the disposal; or the land is disposed of to a person whose restored enjoyment of the land is consistent with Aboriginal tradition or Island custom; or the disposal is for the purpose of renewing the lease of land to the existing tenant of the land; or the land is disposed of to a person who owns adjoining land if— the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and there is not another person who owns other adjoining land who wishes to acquire the land; and it is in the public interest to dispose of the land without a tender or auction; and the disposal is otherwise in accordance with sound contracting principles; or all or some of the consideration for the disposal is consideration other than money, for example, other land given in exchange for the disposal, if— it is in the public interest to dispose of the land without a tender or auction; and the disposal is otherwise in accordance with sound contracting principles; or the disposal is for the purpose of a lease for a telecommunication tower; or the disposal is of an interest in land that is used as an airport or for related purposes if— it is in the public interest to dispose of the interest in land without a tender or auction; and the disposal is otherwise in accordance with sound contracting principles; or for the disposal of a valuable non-current asset, other than land, by way of a trade-in for the supply of goods or services to the local government— the supply is, or is to be, made under this part; and the disposal is, or is to be, part of the contract for the supply; or for the disposal of a valuable non-current asset by the grant of a lease—the grant of the lease has been previously offered by tender or auction, but a lease has not been entered into; or none of paragraphs (a) to (e) apply and the local government considers the disposal is— in the public interest; and otherwise in accordance with the sound contracting principles. (sec.236-ssec.2) An exception mentioned in subsection (1) applies to a local government disposing of a valuable non-current asset only if, before the disposal, the local government has decided, by resolution, that the exception may apply to the local government on the disposal of a valuable non-current asset other than by tender or auction. (sec.236-ssec.3) If a local government makes a resolution deciding that the exception mentioned in subsection (1) (f) may apply to the local government on the disposal of a valuable non-current asset other than by tender or auction— the resolution must state— why the local government considers the disposal of the asset other than by tender or auction is in the public interest; and how the disposal is otherwise in accordance with the sound contracting principles; and the local government— must, within 5 business days after making the resolution, give a copy of the resolution to the Minister; and must not dispose of the asset as permitted by the exception within 56 days after making the resolution. (sec.236-ssec.4) A local government may only dispose of land or an interest in land under this section if the consideration for the disposal would be equal to, or more than, the market value of the land or the interest in land, including the market value of any improvements on the land. (sec.236-ssec.5) However, subsection (4) does not apply if the land or interest in land is disposed of under subsection (1) (b) , (1) (c) (ii) or (1) (f) . (sec.236-ssec.6) For subsection (4) , a written report about the market value of land or an interest in land from a valuer registered under the Valuers Registration Act 1992 who is not an employee of the local government is evidence of the market value of the land or the interest in land. - (a) the valuable non-current asset— (i) was previously offered for sale by tender or auction but was not sold; and (ii) is sold for more than the highest tender or auction bid that was received; or - (i) was previously offered for sale by tender or auction but was not sold; and - (ii) is sold for more than the highest tender or auction bid that was received; or - (b) the valuable non-current asset is disposed of to— (i) a government agency; or (ii) a community organisation; or - (i) a government agency; or - (ii) a community organisation; or - (c) for the disposal of land or an interest in land— (i) the land will not be rateable land after the disposal; or (ii) the land is disposed of to a person whose restored enjoyment of the land is consistent with Aboriginal tradition or Island custom; or (iii) the disposal is for the purpose of renewing the lease of land to the existing tenant of the land; or (iv) the land is disposed of to a person who owns adjoining land if— (A) the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and (B) there is not another person who owns other adjoining land who wishes to acquire the land; and (C) it is in the public interest to dispose of the land without a tender or auction; and (D) the disposal is otherwise in accordance with sound contracting principles; or (v) all or some of the consideration for the disposal is consideration other than money, for example, other land given in exchange for the disposal, if— (A) it is in the public interest to dispose of the land without a tender or auction; and (B) the disposal is otherwise in accordance with sound contracting principles; or (vi) the disposal is for the purpose of a lease for a telecommunication tower; or (vii) the disposal is of an interest in land that is used as an airport or for related purposes if— (A) it is in the public interest to dispose of the interest in land without a tender or auction; and (B) the disposal is otherwise in accordance with sound contracting principles; or - (i) the land will not be rateable land after the disposal; or - (ii) the land is disposed of to a person whose restored enjoyment of the land is consistent with Aboriginal tradition or Island custom; or - (iii) the disposal is for the purpose of renewing the lease of land to the existing tenant of the land; or - (iv) the land is disposed of to a person who owns adjoining land if— (A) the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and (B) there is not another person who owns other adjoining land who wishes to acquire the land; and (C) it is in the public interest to dispose of the land without a tender or auction; and (D) the disposal is otherwise in accordance with sound contracting principles; or - (A) the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and - (B) there is not another person who owns other adjoining land who wishes to acquire the land; and - (C) it is in the public interest to dispose of the land without a tender or auction; and - (D) the disposal is otherwise in accordance with sound contracting principles; or - (v) all or some of the consideration for the disposal is consideration other than money, for example, other land given in exchange for the disposal, if— (A) it is in the public interest to dispose of the land without a tender or auction; and (B) the disposal is otherwise in accordance with sound contracting principles; or - (A) it is in the public interest to dispose of the land without a tender or auction; and - (B) the disposal is otherwise in accordance with sound contracting principles; or - (vi) the disposal is for the purpose of a lease for a telecommunication tower; or - (vii) the disposal is of an interest in land that is used as an airport or for related purposes if— (A) it is in the public interest to dispose of the interest in land without a tender or auction; and (B) the disposal is otherwise in accordance with sound contracting principles; or - (A) it is in the public interest to dispose of the interest in land without a tender or auction; and - (B) the disposal is otherwise in accordance with sound contracting principles; or - (d) for the disposal of a valuable non-current asset, other than land, by way of a trade-in for the supply of goods or services to the local government— (i) the supply is, or is to be, made under this part; and (ii) the disposal is, or is to be, part of the contract for the supply; or - (i) the supply is, or is to be, made under this part; and - (ii) the disposal is, or is to be, part of the contract for the supply; or - (e) for the disposal of a valuable non-current asset by the grant of a lease—the grant of the lease has been previously offered by tender or auction, but a lease has not been entered into; or - (f) none of paragraphs (a) to (e) apply and the local government considers the disposal is— (i) in the public interest; and (ii) otherwise in accordance with the sound contracting principles. - (i) in the public interest; and - (ii) otherwise in accordance with the sound contracting principles. - (i) was previously offered for sale by tender or auction but was not sold; and - (ii) is sold for more than the highest tender or auction bid that was received; or - (i) a government agency; or - (ii) a community organisation; or - (i) the land will not be rateable land after the disposal; or - (ii) the land is disposed of to a person whose restored enjoyment of the land is consistent with Aboriginal tradition or Island custom; or - (iii) the disposal is for the purpose of renewing the lease of land to the existing tenant of the land; or - (iv) the land is disposed of to a person who owns adjoining land if— (A) the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and (B) there is not another person who owns other adjoining land who wishes to acquire the land; and (C) it is in the public interest to dispose of the land without a tender or auction; and (D) the disposal is otherwise in accordance with sound contracting principles; or - (A) the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and - (B) there is not another person who owns other adjoining land who wishes to acquire the land; and - (C) it is in the public interest to dispose of the land without a tender or auction; and - (D) the disposal is otherwise in accordance with sound contracting principles; or - (v) all or some of the consideration for the disposal is consideration other than money, for example, other land given in exchange for the disposal, if— (A) it is in the public interest to dispose of the land without a tender or auction; and (B) the disposal is otherwise in accordance with sound contracting principles; or - (A) it is in the public interest to dispose of the land without a tender or auction; and - (B) the disposal is otherwise in accordance with sound contracting principles; or - (vi) the disposal is for the purpose of a lease for a telecommunication tower; or - (vii) the disposal is of an interest in land that is used as an airport or for related purposes if— (A) it is in the public interest to dispose of the interest in land without a tender or auction; and (B) the disposal is otherwise in accordance with sound contracting principles; or - (A) it is in the public interest to dispose of the interest in land without a tender or auction; and - (B) the disposal is otherwise in accordance with sound contracting principles; or - (A) the land is not suitable to be offered for disposal by tender or auction for a particular reason, including, for example, the size of the land or the existence of particular infrastructure on the land; and - (B) there is not another person who owns other adjoining land who wishes to acquire the land; and - (C) it is in the public interest to dispose of the land without a tender or auction; and - (D) the disposal is otherwise in accordance with sound contracting principles; or - (A) it is in the public interest to dispose of the land without a tender or auction; and - (B) the disposal is otherwise in accordance with sound contracting principles; or - (A) it is in the public interest to dispose of the interest in land without a tender or auction; and - (B) the disposal is otherwise in accordance with sound contracting principles; or - (i) the supply is, or is to be, made under this part; and - (ii) the disposal is, or is to be, part of the contract for the supply; or - (i) in the public interest; and - (ii) otherwise in accordance with the sound contracting principles. - (a) the resolution must state— (i) why the local government considers the disposal of the asset other than by tender or auction is in the public interest; and (ii) how the disposal is otherwise in accordance with the sound contracting principles; and - (i) why the local government considers the disposal of the asset other than by tender or auction is in the public interest; and - (ii) how the disposal is otherwise in accordance with the sound contracting principles; and - (b) the local government— (i) must, within 5 business days after making the resolution, give a copy of the resolution to the Minister; and (ii) must not dispose of the asset as permitted by the exception within 56 days after making the resolution. - (i) must, within 5 business days after making the resolution, give a copy of the resolution to the Minister; and - (ii) must not dispose of the asset as permitted by the exception within 56 days after making the resolution. - (i) why the local government considers the disposal of the asset other than by tender or auction is in the public interest; and - (ii) how the disposal is otherwise in accordance with the sound contracting principles; and - (i) must, within 5 business days after making the resolution, give a copy of the resolution to the Minister; and - (ii) must not dispose of the asset as permitted by the exception within 56 days after making the resolution.