City moves ahead with Quar­ter plan

Pilbara News - - Pilbara | News - Ali­cia Per­era

The City of Kar­ratha is pro­ceed­ing with plans to pur­chase the Kar­ratha Quar­ter and will soon en­ter into ne­go­ti­a­tions with Land Corp for a suit­able price.

At their meet­ing last week on Mon­day, coun­cil­lors voted six to two in favour of en­ter­ing ne­go­ti­a­tions with Land Corp for a cash of­fer for set­tle­ment within the next 30 days.

The City is seek­ing to ne­go­ti­ate within a price range of $18-22 mil­lion in keep­ing with an in­de­pen­dent val­u­a­tion of the prop­erty.

City of Kar­ratha Mayor Peter Long said the po­ten­tial pur­chase would be in the in­ter­ests of longterm fi­nan­cial plan­ning for the City. He said while the coun­cil was in a strong fi­nan­cial po­si­tion, thanks to sav­ing dur­ing the min­ing boom, they wanted to in­vest in projects with high re­turns to keep rates down in fu­ture.

“Coun­cil is seek­ing to gen­er­ate the best rate of re­turn, so that the whole com­mu­nity can get bet­ter qual­ity ser­vices and fa­cil­i­ties with­out cost­ing ratepay­ers more,” he said. “The Quar­ter in­vest­ment has the ca­pac­ity to gen­er­ate higher fi­nan­cial re­turns com­pared to the bank term de­posit rates, which are cur­rently av­er­ag­ing 2.6 per cent.

“This would pro­vide a sus­tain­able long-term rev­enue source for coun­cil and re­duce its re­liance on gen­er­at­ing in­come from rates.” If suc­cess­ful, the Quar­ter ac­qui­si­tion would be­come the City’s sec­ond big in­vest­ment in in­fra­struc­ture in re­cent months af­ter it com­mit­ted to pur­su­ing the first stage of in­vest­ing $27 mil­lion in help­ing get Land Corp’s Gap Ridge Home­maker Cen­tre off the ground.

Four sub­mis­sions about the pos­si­ble pur­chase were re­ceived from the coun­cil’s pub­lic con­sul­ta­tion pe­riod, most of which stated the pur­chase would be a high fi­nan­cial risk and an ex­tra cost for ratepay­ers.

Coun­cil­lors Fiona White Har­tig and Gary Bai­ley voted against the mo­tion. Cr White Har­tig said there was an “ex­tremely large” risk to ratepay­ers in­volved in the pur­chase.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.