EDITORIAL | Time to see the benefits
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WODONGA mayor Rodney Wangman says the council decision to sell 30 hectares of its Logic estate at Barnawartha North for a rail hub development will help “pay down” the city’s $29.7 million debt.
Councillors voted in favour to approve the sale of land at a special meeting yesterday morning that will allow Blanalko Pty Ltd, the property arm of SCT Logistics, to start building.
The council would not reveal how much it stands to recoup from the deal that will be in direct competition with the Ettamogah Rail Hub.
Councillors also agreed to a rates concession for the buyer — one of the conditions Blanalko sought.
“The land is at or above valuation,” Cr Wangman said.
“I would like to keep the land price and rates concession at commercial-in-confidence, that is important to this development.”
Cr Wangman described yesterday’s decision as a “really important step in the journey of Logic and also the city of Wodonga”.
Council has invested $33 million on Logic and $7.8 million of the council’s debt is attributed to the site.
The cost is anticipated to be recouped through additional land sales and continued rates.
“Every land sale there reduces the amount that Logic owes the city of Wodonga,” Cr Wangman said.
“Better than that though, at some point in time when the last $7.8 million is removed because of land sales, what we will see is money coming from future land sales.
“There’s something like another 450 hectares of land sales still to go forward.”
Chief executive Patience Harrington said the rail hub would generate 118 jobs and 63 indirect jobs.
“Three years ago, council was very clear that this was one of the goals that needed to be achieved, and with my team we are well on the way to realising that,” she said.
“What people need to realise is that our whole economy will experience growth.
SCT has proposed to spend more than $30 million on establishing sites at Wodonga and Altona.
Ms Harrington said the proposal was a direct link to the redevelopment at Altona.
“What SCT provides across the nation is a very strong network of logistics and that link to Altona is directly linked to the port of Melbourne and possibly Brisbane and Sydney,” she said.
“So here we have a company that can provide immediately that boost to our region.”
The council received 19 submissions and three people asked to speak about their concerns ahead of yesterday’s meeting.
One of the objectors was Colin Rees, who opened his rail hub at Ettamogah in 2009.
Mr Rees said while he was disappointed with the decision, he said his company had to “get on with our vision”.
Ettamogah Intermodal Hub general manager Phil Clements was surprised that more notice was not taken of the company’s input with the process.
“There’s assumptions in the submission we find hard to believe,” he said.