Agent offloads prime CBD site due to 'outrageous rates, planning delays'

Peter Mylonas has also branded Goulburn Mulwaree Council's proposed 51 per cent rate rise over three years as "outrageous" and vowed to fight it at the highest levels.

He purchased a 4190 square metre block on the corner of Clinton and Bourke Streets in late 2020. Mr Mylonas intended to build lower ground retail with 41 to 70 apartments across four to six levels on top. He enlisted an architect to draw up plans.

But for the past three years he's waited on a council review of CBD building height restrictions in the CBD to judge whether he could proceed.

"I was told they would lift the (permissable eight-metre height) but every time I call, they can't tell me when that will be," Mr Mylonas said.

"In the meantime I'm paying $24,670 in rates on the block annually. It costs me $170,000 each year, including holding tax, rates, land tax and interest payments. It's not viable for me and if I wait any longer, I'll go broke."

Mr Mylonas has called for expressions of interest in the site, which once housed the Caltex service station.

He said the council was initially enthusiastic that the site and his other building on the Clinton/Auburn Street corner should "make statements" on the city's entries.

A council spokesperson said a report recommending preparation of a planning proposal with the required changes was expected to go to councillors in the first quarter of 2024.

"The CBD and its surrounds is heritage listed and forms an integral part of Goulburn's character," the spokesperson said.

"The council has been undertaking a series of background studies and assessments in order to ensure that the town's character is not lost and that the development proposed achieves the desired outcomes.

"Changing heights (and densities) also affects other areas such as overshadowing, car parking, view lines and is complicated by changing flood planning provisions introduced by the State."

The height control review is aimed at providing more housing in and around the CBD, improving choice, maximising use of existing infrastructure and "increasing vitality" in the city centre.

Preliminary consultation with State agencies regarding the planning proposal has already started.

Mr Mylonas believed the apartments would strike strong demand, given popularity of Marian and Quest units opposite and the trend towards inner city living.

But with delays in the building height review and a flagged rate rise, the agent has decided to 'cut his losses.'

"The rate rise is outrageous for the commercial sector...If it goes ahead we'll have the highest commercial rates in NSW among comparable councils," Mr Mylonas said.

He told The Post that he, CBD property owner, Paul O'Rourke and a small committee were compiling figures showing this.

"We're seeking a reduction, not an increase and we'll go to the NSW Local Government minister over it. A lot of business is supporting us."

The group is also seeking legal advice on whether a class action can be lodged against the council over the rate rise, if it proceeds.

The Independent Pricing and Regulatory Tribunal (IPART) is yet to conduct its own community consultation before deciding the matter. A decision is expected in May, 2024.

Modelling by council consultants, Morrison Low about the rate proposal showed that with the initially flagged 43.1pc rate rise over one year, business rates would rise to an average $7,606 in 2024/25. This was the highest behind other category four councils. Broken Hill was second highest at $7209 and Queanbeyan-Palerang third on $7,080.

Modelling on the adopted 51.2pc hike over three years has not been made available.

Mr Mylonas said people wouldn't mind a three to four per cent rise but a 51.2pc hike was "an abuse."

"The three-year option is slightly better but the result is the same," he said.

"If higher rates are passed on in the CBD, it will devalue properties. When we sell commercial sites it is usually for a six to seven per cent return. When you increase rates, there is less return."

The council has justified the rate rise on the basis of rising costs, state government cost shifting, the need to maintain service levels and asset renewal and to avoid projected deficits in its general fund.

At the same time, it has added provisions to its hardship policy and endorsed a revised pensioner concession policy.

Mayor Peter Walker previously said if finances weren't addressed now, they would be worse in future. Councillors voted six to three at their November 21 meeting to proceed with a 51.2pc rate rise application to IPART.

Mr Mylonas said he told the mayor in a meeting that now wasn't the time and people couldn't afford the increase. He has also met with the Goulburn Chamber of Commerce and MP, Wendy Tuckerman.

"People are struggling and I see this because I manage 100 commercial properties. It is pretty tough," he said.

"...This will mainly hit the CBD at a time when they've already had a rate increase with the valuer general's valuations.

"...The council has opened a can of worms with this because people are coming from everywhere to object."