Selling city assets

BY GARETH KENT

Director, Preston Rowe Paterson

All everyone is talking about this week in local property is the pending sale of the Civic Carpark.

This week, the City of Greater Geelong (COGG) auctioned the Civic Carpark, a process run by Colliers International. The property comprises of 503 carparks and four ground floor retail shops, with frontages to Gheringhap, Little Malop and Malop street, and a land area of approx. 4,000 sqm (1 acre).

This is a significant landmark in central Geelong but also provides essential car parking to many local retail traders within the CBD.

The carpark is one of four buildings being put on the market by COGG as part of its revenue plan. These other buildings include the Busport Car Park (Brougham St), Belmont Tenpin Bowling (Reynolds Rd) and 200 Princes Hwy (containing KFC). According to COGG, the city hopes to raise $50 million from the four sales; in my opinion, the number is likely to be much higher.

I am entirely in support of the sale of these assets. Many would agree that councils need to invest in essential assets that can facilitate the provisions of services within their charter.

These sales will be fascinating.

The Civic Carpark is one of the largest sites within the CBD, and its position located between the Cultural Precinct and the newly re-invigorated hospitality district of Lt Malop St creates both a unique opportunity but also, if ill-managed, could adversely impact all the surrounding businesses.

Is there a discussion to be had in a sales process, whereby the purchaser must behave in a certain way? Very difficult to enforce; in good sense, council has sold the property with a covenant wherein parking must be continued for ten years and this is good thinking.

How do we ensure a locally minded purchaser comes to the fore and utilizes these buildings for everyone’s benefit into the future?

In recent years COGG has sold several buildings it no longer needs.

The General Post office is the most interesting one, located on the corner of Gheringhap and Ryrie streets.

With a stunning façade, this Geelong historical landmark building was sold with protections and restrictions around its uses with an aim to ensure its future use was sensitive to its location and place. Although this has still not been developed by the purchaser, plans have been published for a boutique hotel with a rooftop bar etc.

I assume that these assets are being sold to assist in lowering debt associated with the construction of the new Civic Headquarters known as Wurriki Nyal.

Swapping these old buildings that were obsolete and replacing them with a new civic centre is smart business.

We can only hope that COGG will operate with more efficiency and effectiveness from their swish new lodgings.

I am not aware of any formal decisions that have yet been made about the Old Townhall on Gheringhap St. However, it is public knowledge that there is a consideration to extend the neighbouring Art Gallery into the Townhall building; this would make for a much larger Gallery and draw more people to the region.

I recall a similar operation, undertaken by the Surf Coast Shire, who sold their old assets at Grossmans Rd to build the new Shire Offices at Merrijig Drive.

The new building is a landmark in Torquay; at the entrance to the town, it is like a welcoming beacon.

Most importantly, it has enabled the Shire to attract talented staff who enjoy working in better conditions and helped improve their work culture.

We can only hope that the new lodgings for COGG will have a similar impact and allow for much-improved services. This outcome would re-confirm the decision to sell their old assets.