Shire to review new office plan

Alex de Vos
Surf Coast Shire is reviewing plans for a controversial new 20-hectare civic precinct at Torquay amid concerns it could lead council into another financial crisis.
New chief executive officer Mark Davies said in a statement emailed to the Independent he would lead a “project control group” to plan development of the site.
The group would review precinct plans developed under former shire chief Peter Bollen.
“The first part of the planning process is to test all of the assumptions included in the original business plan and prepare a revised business plan for presentation to the new council in early 2009,” Mr Davies said.
“This incoming council has an exciting opportunity to guide development of the land.
“The new council will be able to examine the work that has been done and make decisions about just exactly what will be built on the site and when.”
The Independent revealed in June community concerns about a “colossal” $16.5 million shire debt to buy the precinct site off the Surf Coast Highway north of Torquay.
The town’s ratepayers’ association feared a repeat of 2002 when State Government ordered a commission of inquiry into the shire’s finances when debts hit $14 million.
Economist and council election candidate Joe Remenyi has re-ignited the concerns after calling for a review of the precinct plan amid the global financial crisis.
The shire plans to pay off the site debt over three years with contributions from property developers.
The shire’s budget scheduled the first repayment, $3.5 million, this financial year.
Mr Davies’ said council was “confident” it could still pay back the $16.5 million on time.
“The extended vendor terms and staged payments offered have meant council is confident it can purchase the land within the budget it has developed for the project,” Mr Davies said.
“We have developed a careful and well scrutinised financial model and commissioned a master plan that demonstrates the affordability of the site and the suitability of the land for a range of needs.”
The precinct would house new shire offices and sport facilities including soccer, football and netball ovals.
Federal Government has announced $4 million for the sport facilities.