THE council has deferred a decision on who should buy a large portion of its waste water farm at North Goulburn.
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Three parties, including two locals, lodged expressions of interest in the 1260-acre holding when they closed on July 14.
An evaluation panel, comprising council executive staff, had recommended that Goulburn company Denrith Pty Ltd, in a joint venture with Kadwell and Co Pty Ltd, be sold the farm for $4 million.
This was $275,000 above a market valuation and offered the “best value,” general manager Warwick Bennett stated in a report.
Sydney registered horticultural company, Aodaliya Fresh and Green is also interested in the vast property, currently used to irrigate Council’s treated effluent.
The outfit wants to grow flowers and vegetables in hot houses for export overseas.
Their initial interest sparked the expressions of interest.
Then there’s ARW Multigroup Pty Ltd.
Mr Bennett said there were a variety of options contained in this offer, including joint venture and leasing but the company would pay Council the valuation, plus five per cent.
The panel rated the bids on financial criteria (50 per cent) and technical criteria (50pc).
The latter included the wider benefits for Goulburn and how the purchaser would use the property for irrigation purposes up until Council’s new sewer treatment plant was commissioned.
Work on that project is underway.
Despite an April resolution that all expressions of interest be “publicly considered,” this did not occur at the most recent meeting.
In his report, Mr Bennett said he considered this “inappropriate” while negotiations between two parties were ongoing.
“In assessing the expressions of interest, the executive believe there is considerable benefit to the Goulburn Mulwaree economy for the successful applicant (Denrith and Kadwell) to develop a joint venture that not only allows the successful company to go about its intentions but also to accommodate an operation that will have significant employment and business growth for the region,” Mr Bennett stated.
“To achieve this, I have spoken to both parties who are now talking to each other, discussing opportunities and options.”
Going green
Aodaliya describes itself as “a high technology based horticulture company, established to supply large volumes of safe, fresh fruit and vegetables to the Chinese market, in response to growing demand there for premium produce from pristine environments.”
The Denrith and Kadwell proposal required the land to be rezoned for rural purposes for what Mr Bennett said was a primarily agricultural purpose.
He recommended that Council proceed with this and pay the $50,000 cost involved, plus staff time to oversee the amendment.
But Cr Margaret O’Neill wasn’t so sure.
She won unanimous support for her move to defer a decision until all parties, including ARW Multigroup, had a chance to present their proposals at a council workshop.
The matter did not generate any discussion.
Mr Bennett said yesterday the workshop would be held on Thursday, September 3 but would not be open to the public.
“The organisations making the presentations have requested that the workshops be held with Council only,” he said.
“They believe that their proposals will be commercially compromised if the workshop is held open to the public. I have advised councillors accordingly and have receive no objections to this course of action.”
He told the Post an open report would be put to Council either at the September 15 or October 6 meeting.
The council is retaining 316 acres of the property as a biodiversity offset required under consent conditions for the Highland Source pipeline.
The remaining land, up for sale, has been deemed surplus to needs with the looming upgrade of the sewer treatment plant and its more sophisticated means of effluent disposal.
The property two houses - ‘McIntyre,’ a four-bedroom home and a disused dwelling at the ‘Deer Farm’ holding Council later purchased. Both have farm and storage sheds.
Up for grabs
Meantime, an auction for another of Council’s assets, 600 square metres of land near The Bakery of Goulburn in Sowerby St, will be auctioned onsite this Saturday.
It includes two building envelopes with heavy encumbrances, such as a water easement, but is expected to be keenly contested given its location.
On September 18, Ray White Real Estate will auction 56 Clinton St, formerly housing the Mulwaree Shire Council offices but still owned by the current council.
Part of the space is leased to Corrective Services until June, 2016, with two six-month options to renew.
