FAQs
Why is Council selling any of its properties?
The sale of Council-owned properties is one of the actions being taken to improve its current financial situation. While it won’t reduce the long-term forecast structural deficit of $25-$35 million annually, the funds raised from the sale of properties will be used to pay down its borrowings, which will have a gradual impact over time.
How will Council sell its land as part of this process?
In accordance with Council’s procurement policy, quotations were sought from a range of local real estate agents with extensive knowledge of the local market. After reviewing and considering these quotations, Integrity Real Estate has been engaged to support Council in its initial group of land sales. Integrity Real Estate demonstrated significant experience in commercial, industrial, and residential sales.
Land will be sold through a competitive process and for not less than an independent valuation of the property. This may include an EOI, private treaty or auction.
All queries on land sales should be directed to Nicole Mennie from Integrity Real Estate on mobile 0477 111 128 or email teamrussell@integrityre.com.au
How were the properties chosen as suitable for sale, selected from the 3,100 properties Council manages and maintains?
The properties that are for sale or being investigated for potential sale have been selected through an analysis of its land register. This includes considering the following for example; the history and background of the land, is the land being actively used for a specific purpose, are their planning constraints that would prevent the use and / or development of the land, would the sale of the land lead to a better use of the land by the private sector. While many are land lots that are in residential places, others are buildings that are beyond their useful life and would require significant capital outlay to bring the facility back to current standards.
What evidence is Council relying on when it says that a property is being ‘underutilised’?
Depending on the site in question, it typically means that the land has been zoned to allow for a higher or better use than what it is currently accommodating.
For instance, if the land is zoned residential and is not reserved for open space then this would be better utilised by the private sector to meet the demand for housing stock. The process in this instance would include checking that the land is not identified within any open space and recreation strategic plan and ensuring that the land is not being actively used as open space by the community.
Have the neighbouring properties of these sites been notified of the possible sale?
Landowners are not required to notify neighbours of their intention to sell, however Council is undertaking community consultation - which makes its intention to sell properties available to everybody, including neighbouring property owners.
What’s the difference between land that’s classified as community and operational?
Community land includes parks, reserves or sports grounds and is dedicated for public use.
Operational land has no special restrictions other than those that apply to any piece of land.
Who will value the properties and negotiate their sale?
Land valuations will be done by professional property valuers and property sales will be managed by independent real estate agents who will engage in a competitive sales campaign to ensure the best sale price.
How will properties be sold – by auction or listed sale?
Properties will be sold either through a competitive sales and marketing campaign to ensure the best sale price or, in the case of direct sales with a proposed buy, properties are sold for no less than the market value, which will be determined by an independent valuer.
Are the sales of properties open to foreign investment?
Council’s sales process will adhere to all the relevant state and federal legislation, including the Foreign Investment Review Board (FIRB).
How are the implications of any future redevelopment of any of the parcels being considered?
Any development or redevelopment on any of the land parcels will require a development application (DA).
A DA is a formal request for consent to execute proposed development. This could include change of use of land, subdividing land, carrying out work on a building, and landscaping amongst other things.
The approval of any DA is subject to a range of criteria including provision of parking and traffic management.
For some of the properties, conditions of sale have been included and therefore approval would be subject to the conditions of sale being met.