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Assume That there is a popurlar recreation reserve 15 kilometres outside a large city The reserve which is about 1000 acres in area is owned and maintained by the Parks and Recreation Division of the City Council The reserve is very popular and people do not pay an entry fee to enjoy the use of the small lake river picnic and camping sites fishing and walking trails 1Introduction This report is submitted to City Council of Palmerston North Its purpose is to improve current situation This public asset which is about 1000 acres in the area of a popular recreation reserve 15 kilometers outside a large city is owned and maintained by the Parks and Recreation Division of the City Council The reserve is very popular and people enjoy the use of the small lake river picnic and camping sites fishing and walking trails without an entry fee A property developer has approached with the cash-strapped City Council with an offer to buy the resort area and turn it into 10-acre life-style or smallholder blocks If the reserve as open space the City council will face to the budget problem compared with selling it to property developer that can resolve the money issue in short term On the other hand if the wonderful reserve is sold to private company for commercial usage people who live in this community can not enjoy the use of small lake river picnic and so on And commercial usages activities may be taking some negative effects for the environment This trade-off is a quite serious problem between local government and the public Therefore this report displays this sort of problems and offers recommendations on the sale of the public reserve And it outlines some key issues such as environmental damage and evaluation tools such as total economic value travel cost method and contingent valuation method 2
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