THE Goulburn South Caravan Park will be put to auction early next year, after two years under lease.
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The Hume St facility, owned by Council for more than 40 years, has been leased to a private entity, Southern Cross Parks Pty Ltd, since March, 2012.
The company has undertaken numerous improvements but was staying tight lipped about its buying interest.
Councillors decided last May to sell the caravan park and to call for expressions of interest from real estate agents to manage the process.
In a closed session at the most recent meeting, they selected LJ Hooker to do so.
General manager Chris Berry said councillors would likely set a reserve price in December based on a valuation report.
“We’re expecting something like a six-week marketing campaign,” Mr Berry said.
“If at auction it fails to meet reserve, we’d tell Council that and seek direction.”
He believed the current lessees would vie for its purchase given that they had improvement plans in place “since day one.”
“I think they would be very keen to go to the next stage,” Mr Berry said.
But managing director Matt Williams said the company had not yet decided whether to purchase the park.
“For now we’re running it on a day to day basis,” he said.
“We’ve spent quite a bit of money on improvements and we’ve received good feedback from guests about that.”
The upgrade has included a host of new cabins, a manager’s residence, a new camp kitchen for caravaners and permanent homes, some of which have been sold recently, a general clean up and signage.
Stage two of the program was on hold, pending the auction’s outcome, Council’s land and property services manager, Ken Wheeldon said.
The company has 14 years remaining on its lease, which has to be renewed every three years to keep it active.
But Mr Wheeldon said Southern Cross Parks hadn’t expressly stated it wanted to buy the caravan park.
“They have a lease and may want to turn up to the auction. It’s open slather,” he said.
Southern Cross also operates caravan parks at Dubbo and Narrabri. Mr Williams said Goulburn was a great regional centre which had a lot of potential and the company was keen to continue its investment.
The park has 112 sites, including 47 long-term and 52 shortterm, plus campsites.
The sale contract will include several clauses including first right of refusal and a “buyer beware” stipulation regarding the current condition of private electricity infrastructure throughout the park.
Mr Wheeldon said this was very old and the lessee had engaged a Canberra consultant to undertake an audit of electricity infrastructure.
Since then, talks have been centred on the work council is legally obliged to do and “fair wear and tear.”
Council will upgrade the main switch servicing the caravan park before finalising the sale.
Mr Wheeldon said Essential Energy had undertaken an audit and everything complied but that body had to upgrade its nearby infrastructure before Council could uphold its share of the bargain.
Prospective buyers will be made aware of the electrical audit.
Also at the most recent meeting, councillors decided to reimburse the current operator $30,000 after upgrade work to the amenities block had been completed to its satisfaction. This has to be done before the sale “to address fair wear and tear.”
Council and the lessee have been in dispute over responsibility for the amenities block, which has been played out in closed session.
Tuesday’s decision was made on the basis that “there would be no further claim on Council by the current lessee for repairs to the main amenities block.”
![UPGRADE: Interim Goulburn South Caravan Park caretaker Richard Potter with some of the new cabins built for the facility since Southern Cross Parks took over the lease. The park will be put to auction early next year UPGRADE: Interim Goulburn South Caravan Park caretaker Richard Potter with some of the new cabins built for the facility since Southern Cross Parks took over the lease. The park will be put to auction early next year](/images/transform/v1/resize/frm/storypad-GaYa9c7QuNtLLX2kQCbPqP/ad157c2b-d78d-46e8-b804-11cd4d010037.JPG/w1200_h678_fmax.jpg)