LA Trobe University will cut its losses and sell its iconic Beechworth campus later this year.
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Yesterday the university said the campus was losing almost $1 million a year and couldn’t attract students, while a hotel on the site was less than a quarter full.
But the university expects to sell the site for at least $1.5 million, double what it paid 15 years ago.
Staff, including 11 full-time and more than 10 casual workers, will be made redundant by the end of May.
National Tertiary Education Union La Trobe branch president Virginia Mansel said staff were disappointed but glad to have some closure after months of speculation.
“We understand the decision but we don’t necessarily accept it,” she said.
Ms Mansel said employment options for the soon to be unemployed staff, including gardeners and maintenance workers, were limited.
University Pro Vice-Chancellor Professor Hal Swerissen said the site had been losing more than $800,000 per annum for many years.
He said the hotel operated at an occupancy rate of 25 per cent and was not commercially viable.
“The reality is we don’t actually have a real interest here because we’re a university not a hotel operator,” Professor Swerissen said.
“We explored a number of options to try to make it viable over the last year and that hasn’t worked.”
The university purchased the former Mayday Hills Hospital in 1996 for about $750,000.
Its original plans included international students and hospitality training but educational programs are no longer offered at the campus.
“We’ve got a major expansion in regional education going on and we need additional funds to do that,” Professor Swerissen said.
“For example, we’re after student accommodation in Wodonga, we would like to put another 40 beds in.”
The 106-hectare site includes heritage gardens and buildings dating back to the 1860s.
The sale will be formally approved by the university council on March 21.
Ms Mansel said the site had great potential as a university and that potential was not realised.
“And the fact that we never had students here on a permanent basis has always been an issue within the community,” Ms Mansel said.
Indigo Council mayor Ali Pockley said the site was as iconic as the Mount Buffalo Chalet and the council was concentrating on finding the best outcome for the site and staff.
Tenants including the Beechworth Montessori Primary School, Beechworth Ghost Tours and The Spa at Beechworth will be able to see out their leases.
Professor Swerissen stressed that the university will be looking for input from the community about the future of the famous site and in the meantime community feedback can be sent to via email to communityfeedback@latrobe.edu.au.
