2018-12-20 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                         20 DECEMBER 2018


Valuations and Funding
Council has received a valuation of the property of $1.97 million. It is understood that the State
government has also received a valuation for a slightly higher amount. These valuations are based
on market values for the property in its current condition.

It is also understood from negotiations that the State Government is willing to accept a lower amount
on the basis that the property has been vacant for nearly 4 ½ years and that it wishes to resolve this
matter sooner rather than later. It is also understood that the State Government would like to see the
property transferred to the local government and that no conditions would be imposed in relation to
future use (including no conditions relating to whether or not the Council can on-sell all or part of the
property). In short, the State Government is looking for a quick resolution of this issue and is willing
to sell the property to our Council at a reasonable price. Final conditions and details have not been
resolved but negotiations indicate that the State government will be willing to sell the property to
Council for $1.7 million.

In terms of funding, part of the property contains significant environmental land with the balance of
the property containing improvements (roads, buildings etc). Based on our valuations, part of the
property value relates to the environmental land with part relating to the remaining land and
improvements. On this basis, it would be proposed that funding of the property would be apportioned
with part of the funding from the Environment Levy and part from general cash reserves. This
apportionment can be determined as part of the Budget Review 3 process.

CONCLUSION
An opportunity is currently before the Noosa Council to secure the former Tewantin TAFE site. If
purchased at an extremely good price, there are a range of opportunities for Council to recoup costs
for ratepayers and to facilitate use of the site for broad community benefit.

This is a highly strategic site, and one of the last large blocks available in Tewantin. Much of the land
also has considerable environmental value that is worthy of protection.

Arguably, Council has a far better opportunity, and greater investment in, identifying a beneficial
future use of the site, and working towards that use, than does the State. Any movement towards
use of the site would be better than the absurd impasse of the past 4 years, where the facility has
generally been idle.

Of course there are some risks associated with Council purchasing the site. In the short-term, there
will be costs associated with developing business cases for its use. There are also ongoing
maintenance, insurance and depreciation costs which Council will have to consider as it develops
business cases for the use of the facility.

It is, nevertheless, worth noting that, thanks to excellent fiscal management, Noosa Council is in a
strong financial position at present, with solid cash reserves and comparatively low debt. Therefore,
the financial risk would not be so great to in any way jeopardise Council’s overall financial position.

An investment of this kind presents a range of opportunities for Council to progress a significant site
and facility in the best interests of the community, whilst acknowledging that some risk exists around
the ultimate financial outcome of the investment.

There has been considerable community interest in the future of the site, and the moth-balling of the
facility remains a source of frustration for many residents.




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