2018-08-31 Special Meeting Minutes

SPECIAL MEETING AGENDA                                                                    31 AUGUST 2018


 Option                  Benefits                                    Risks
                                                                      Inconsistent     use     development
                                                                        application results in refusal and
                                                                        costs to defend a legal appeal
                                                                      Site     completely    cleared    for
                                                                        development with at risk vegetation
                                                                        lost
 Buy and sell / retain   Buy and Sell                                Buy and Sell
                          Council is able to control the likely      Preferred Council use for the site
                            future use of the site (with the use        may not align with or eventuate with
                            likely to be compliant with Council’s       the potential purchaser
                            planning scheme)                          Ratepayers may need to fund any
                          Costs of purchase can potentially be         net cost should purchase and other
                            recouped through sale (with site            costs not be recouped through
                            subdivision or applying binding             immediate or longer term sale
                            covenants protecting vegetation             (through either a general rate
                            where required)                             increase or reduction in cash
                          Future commercial opportunities on           holdings)
                            the site could also assist in meeting     Realisation of cost shifting to local
                            Council’s broader economic plan             government
                            objectives
                         Buy and Retain                              Buy and Retain
                          Council is able to take control of the     Council retains responsibility for
                            site (and undertake appropriate cost        refurbishment of the buildings, and
                            benefit analysis regarding financially      ongoing          operations       and
                            viable uses – including possible floor      maintenance costs of the facility
                            space downsizing to minimise cost)        An anchor tenant is not secured
                          Site purchase and retention would            (particularly given no expected
                            protect at-risk vegetation                  tertiary education demand for the
                          Future site use could assist in              site)
                            meeting        Council’s      broader     Uptake of floor space may not
                            economic plan objectives                    eventuate given location and other
                                                                        spare commercial floor space
                                                                        capacity in the shire
                                                                      Ratepayers could fund the purchase
                                                                        and net cost of operations of the site
                                                                        in its current form through a general
                                                                        rate increase



Where to from here?

Council staff are continuing to liaise with the state regarding the future of the site. Given the options
assessed and identified risks and benefits in this report, it is recommended that the purchase and
sell/retain option be pursued in the first instance depending on the Department of Employment,
Small Business and Training’s asking price (primarily given the site’s strategic location and the
opportunity to gain control of the site to investigate opportunities and mitigate development related
risks). An independent valuation has been undertaken which has provided some indication of the
current market value of the property.

If this approach is taken staff would report back to Council with the outcome of those discussions.




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