2018-12-20 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                           20 DECEMBER 2018


PURCHASE OF THE FACILITY

The Department of Employment, Small Business and Training made contact with Council in March
2018 to discuss whether Council had any interest in purchasing the site. Following this contact,
information was obtained and developed as part of Council’s due diligence investigations in the
following areas:
1.    Site infrastructure;
2.    Site planning, land use options and environmental considerations;
3.    Building condition assessment;
4.    Potential site demand (commercial and community); and
5.    Financial analysis and whole of life cost implications.

At a Special Meeting of Council on 31 August this year, the following resolution was passed:

That Council note the report by the Director Corporate Services and Project Officer to the Special
Meeting dated 31 August 2018 regarding potential uses for the former Tewantin TAFE site located
at 24 Cooroy Noosa Road, Tewantin and agree for Council staff to continue negotiations with the
Queensland Government regarding the future of the site, noting that any final decision regarding
possible purchase will come to Council for determination.

Shortly thereafter, the sale of the facility transferred from the Department of Employment, Small
Business and Training to the Department of State Development’s Property Queensland division.
Council made regular contact with this team.

It is understood that the State undertook a further valuation of the site to see whether this would
align with Council’s own valuation. At this point, negotiations stalled as Council waited on further
advice from the State.

After a period of time, Member for Noosa, Sandy Bolton MP, made representations to expedite the
negotiation process. This effort resulted in contact being made by the State last Friday, 14 December
2018. Council’s Director Corporate Services was thus informed that the State would welcome a
purchase offer from Noosa Council.

Furthermore, it is understood that this offer could be significantly less than the market value
contained in the valuations performed for both the State and Council.

By purchasing the site, Council is able to control the likely future use of the site. If Council were to
pass up the opportunity to purchase the site, the State would likely go to the open market to secure
a sale. This could result in a development that was in conflict with Council’s planning intent for the
site and/or in conflict with the environmental constraints on the site, in either case potentially resulting
in legal costs should the matters end up in appeal.

The possibility exists for Council to purchase the site and recoup all costs through Council on-selling
the land, with possible subdivision or binding covenants protecting the vegetation and habitat where
required.

Alternatively, an appropriate business case may be made for Council to retain the ownership of the
site and thus leasing part or all for a range of uses. Again this would ensure that at-risk vegetation
was protected and the final use was of broad community and local economic benefit.

No decision is required on this use aspect at this stage.




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