Geelong’s council will give away Ocean Grove land worth about $1 million for a community service which is usually funded by state and federal government.
Councillors voted this week to transfer 77-79 Draper Street “at nil consideration” to provide supported accommodation for disabled people.
Disability services provider Karingal will build the facility on the site which formerly operated as netball courts in a residential area and opposite a football oval.
Karingal, which has an operating budget of $100 million a year, must begin building within 12 months of the handover and begin operating the accommodation in one and a half years.
The council agreed at the meeting on Tuesday night to hand over the site, fronting Asbury Street at the rear, as it seeks permission to exceed a proposed government rates cap amid claims of state and federal “cost shifting” onto City Hall.
Ocean Grove councillor Jan Farrell said the Bellarine Peninsula had a shortage of “suitable” supported accommodation for disabled people.
“I’m thrilled we have been able to provide some additional options for those people and their families.”
Cr Farrell said the future of the site was the subject of two public submission processes and had been identified “for a much-needed community use”.
Western Victoria MP Simon Ramsay questioned why councillors would give away such valuable land while City Hall’s finances were so “shaky”.
“The council is simply in no position to be gifting land, given its financial position,” he said.
“It was an odd decision given the council’s long-term strategy of maximising the value of council assets to ratepayers and reducing debt.
“I don’t think there’s any dispute that more investment into services provided by Karingal is needed but, given a significant investment by all tiers of government into disability services, ratepayers could well question if the City of Greater Geelong is in a position to gift millions of dollars of council-owned land to multi-million dollar companies.
“With the City of Greater Geelong currently under investigation for poor governance, I would have thought councillors would take a more cautionary approach in the use of ratepayer assets and decisions that impact the city’s long-term sustainability.”
Mr Ramsay warned that the council may have set an expensive precedent.
“Once you set a precedent the council will open itself up to all sorts of requests from needy causes but it’s an issue about responsible governance, regardless of who it is helping.
“It’s not the council’s role to provide stimulus for developers by granting free gifts of land which should be treated like any other council asset.”
