Signature Care objects to Goulburn infrastructure fees for aged care facility

Signature Care CEO Graeme Croft requested a $626,964 reduction on water, sewer, stormwater and roads infrastructure for the 144-bed facility his company is planning at 134 Lillkar Road, Run-O-Waters.

"The charges imposed on us are in the region of $1.8 million to connect to existing trunk infrastructure, where in Grafton the cost is $1.1m where we have commenced the project delivering 170 permanent jobs," he said.

"As a private company we can choose where to invest, and we will divert funds earmarked for this project into Queensland where incentive savings of up to 50 per cent on infrastructure costs are being offered to stimulate investment.

"...Given incentives offered everywhere to stimulate investment, and job creation,this is a very short sighted decision of council."

But at Tuesday's meeting, councillors did give some slack on the charges; they decided to allow Signature Care to pay the $626,964 over two years but not to reduce the total $1.8 million.

Mayor Bob Kirk argued that if large residential developers had to pay the fees, so too should the facility's proponents.

The council is preparing a planning proposal to amend its LEP, allowing the development with consent in the RU6 transition zone. It would sit about 100 metres behind the Cole Distribution Centre, with access from Lillkar Road.

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Pre-lodgement discussions in July about a DA revealed an estimated $1,831,362 in water, sewer, stormwater, roads and traffic and administration fees would apply to the unserviced lot.

But in a recent letter to the council, CEO Graeme Croft claimed Goulburn Mulwaree's charges were "significantly more expensive" than others, with "no apparent benefit."

Signature Care is also developing 144-bed aged care facilities at Grafton and Wagga Wagga. Mr Croft said Clarence Valley Council was charging $1,076,256 in infrastructure fees and Wagga Wagga - $1,067,871.

"Signature Care holds provisional approval for 144 aged care places for Goulburn issued by the Commonwealth," his letter tendered to the meeting stated.

"If Signature decides this development cannot be provided in Goulburn on the basis of cost or viability, the funding may be switched to other regions with consent from the Commonwealth."

Mr Croft suggested that an average of the two other councils apply, giving a total $1,072,063.

He highlighted the project's economic return to Goulburn, including a $20m spend on construction, 164 full and part-time jobs and training opportunities. The facility will attract $10.8m annually from the government for the aged care places.

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Deputy Mayor Peter Walker said it was one of the largest employers for Goulburn in some time. He asked general manager Warwick Bennett whether the company could "walk away" from the proposal.

"The operative words are 'with Commonwealth approval,'" Mr Bennett replied.

"The federal member (Angus Taylor) has been very supportive of this application. We believe in talks with (him) that any transfer to another region is extremely unlikely, otherwise a further developer will be investigated."

He said the charges were "fair and reasonable" and similar to others in the region.

Staff cross-checking calculated Wagga Wagga's total fees at $1,332,541, while Clarence Valley's was $1,076,256, which did not include stormwater and section 7.11 fees.

A report stated that Goulburn Mulwaree's charges were based on a "rigorous" 2016 process, based on the capital works required to service developed areas.

"While these rates are higher than Clarence Valley and Wagga Wagga, previous comparisons have our rates similar to other councils in the region," authors wrote.

The project would use the equivalent of 72 houses for water and 108 homes for sewer.

Mayor Bob Kirk said large residential subdivision developers in Goulburn had been working under the same contributions plan for several years.

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"Those projects are more than 72 and 108 houses and they've all paid the current rate and created lasting employment," he said.

"If we don't do this, it's not fair to expect residents to subsidise the cost."

While the council had granted infrastructure fee relief to Tribe Brewery in 2018, the Mayor said it would receive an ongoing return through high water and sewer usage.

"I welcome Signature Care and all the opportunities it presents for Goulburn but I trust they'll see we're a fair and equitable community too."

Councillors agreed to maintain the current rate. A total $1,204,398 will be payable on release of a construction certificate while the remaining $626,964 can be paid over the ensuing two years.

Mr Croft did not comment on this concession. In a statement he said he regretted the council decision and pointed out his company had $200m currently committed to aged care, generating 1500 jobs.

"Importantly, aged care facilities in Goulburn in 2018/19 had 98 per cent occupancy. As a result the new hospital wings are likely to be filled with the elderly waiting on aged care placement," he said.

Mr Croft agreed that the Commonwealth's assigned aged care places would stay in this region but said he would take his capital investment to Queensland and apply for federal bed funding there.

Later in the meeting, councillors considered a draft local infrastructure contributions plan 2020. Environment and planning director Scott Martin said the old 2009 charges were no longer adequately funding growth.

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The revised plan would generally increase levies for residential but not alter those for commercial, industrial and other uses, a report stated.

The plan will be publicly exhibited.

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