2019-05-07 Planning & Environment Committee Agenda

PLANNING & ENVIRONMENT COMMITTEE MEETING AGENDA                                       7 MAY 2019


3    Contract Signing

Following the receipt of the Under Treasurer approval, in accordance with the Council decision,
contracts were signed and payments made as follows:
 The contract was signed between Noosa Council, the Department of Environment and the
    Department of Forestry and Noosa Parks Association relating to the contribution of $3.5M in
    acquisition costs for the pine Plantation License Areas (PLA) and other arrangements relating
    to the tenure, transfers and administration of this environmental project. The acquisition cost
    of $3.5M is shared equally between the State, Council and Noosa Parks Association. Noosa
    Parks Association paid its share of the contribution via a payment of $541,666 (paid upon
    signing of the contract) together with a contractual obligation to pay the five periodic
    payments set out below. Council paid a contribution of $1,791,666 and will receive the five
    periodic payments set out below from Noosa Parks Association. This results in each of the
    three contributors (State Government, Council and NPA) ultimately paying $1,166,666 each
    towards the $3.5M acquisition cost;
 The contract was signed between Noosa Council and Noosa Parks Association relating to the
   payment by Noosa Parks Association to Council of the sum of $125,000 pa for 5 years
   commencing 12 months after their initial contribution of $541,666;
 The contract was signed between the State Department of Forestry and HQPlantations for
   the payment of $3.5M compensation for the surrender of their PLA, the finalisation of their
   commercial pine harvesting and immediate surrender of rights for any hardwood areas
   covered by their PLA.

All of the above contracts have been signed and payments made (other than the five annual
periodic payments which start in 2019). Note that in accordance with the contract, an interest
bearing account with QTC has been established in the amount of $2,333,332 and interest from
that account will be used for Koala preservation projects in Noosa nominated by Noosa Council.
Interest will accumulate for 5 years.

A formal signing ceremony was held on site on 7 November 2018 attended by all of the parties
(including the Minister for the Environment) and media.




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