SOLICITORS for Goulburn Airport lessee John Ferrara have told Council he would press ahead with purchase of the facility.
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They exercised the option to buy the Windellama Rd facility just hours ahead of Monday’s 5pm deadline, Council general manager Chris Berry confirmed. It followed Council’s refusal last week to grant a 12-month time extension on the option. Mr Ferrara now has 42 days to settle the $2.5 million sale.
The development comes despite Mr Ferrara’s statement to the Post on Friday that he was not going ahead with the sale because he couldn’t raise the funds.
Asked what had changed between then and Monday, Mr Ferrara said: “On Friday I had the s…ts.”
He’s also conceded he was still trying to secure finance for the sale.
“I don’t have the finance approved now but I will by the 14th October (settlement date),” Mr Ferrara said.
“It’s not that I can’t get the money, I just want it at the right rate and that’s why I asked for the extension.”
He maintained a local bank had taken four to five months to assess his application and then refused finance.
Mr Berry said he was surprised by the last minute notice; Council had already “pencilled in” plans to revise the budget, factoring in resumption of airport management.
“We were generally surprised because Mr Ferrara had indicated at a briefing session (in August) that at least one bank had refused financing arrangements.
We then asked him to put his concerns in writing,” Mr Berry said.
Soon after, Mr Ferrara requested the time extension, which councillors subsequently refused. They said he’d had enough time (two years under the contract) to raise the capital and complete an agreed schedule of works.
Mr Berry said Mr Ferrara was disappointed by councillors’ decision. Council itself could not see how he could “raise the cash” between Friday and Monday, he told the Post.
The general manager said Mr Ferrara still had some work to complete by the time of settlement.
“They are minor in the scheme of things but the big ticket items have been largely completed,” he said.
Airport users disagree, saying the requested new terminal, which Mr Ferrara has put inside his motel, does not meet the minimum 200 square metre requirement. They have also pointed to incomplete landscaping, street lighting that doesn’t work and outstanding work on the motel to meet Building Code of Australia regulations.
Mr Berry said while there would be arguments on how well these works had been done, Mr Ferrara had complied with the DA.
He believed the community had come out ahead on the deal.
“The price paid ($2.5 million) is higher than the airport’s value at the time and the $500 annual lease fee had to be weighed up against the $250,000 he (Mr Ferrara) paid as a deposit. We felt it was more than ample,” Mr Berry said.
He pointed out Council hadn’t put any resources into the airport for the past two years. In addition, Mr Ferrara could now develop the facility as a business and make it his sole focus. By contrast, Council had to balance its operation with many other responsibilities and had attracted criticism for devoting too little attention to its management.
Mr Berry believed, that like Canberra Airport, private operators were better placed to develop airports.
“He will be looking to run it as a business and make a profit and Council was never able to do that,” he said.
“…We tried to cover expenses from income but there was never enough in the fee structure for depreciation or improvements.”
Some users have refused to pay Mr Ferrara’s schedule of fees, imposed when he took up the lease.
He told the Post he’d be now “kicking arse,” issuing new bills to users and taking legal action if they didn’t pay.
Mr Ferrara maintained the number of landings had “doubled” at the airport since he took over. Moreover, he’d be buying a new plane to increase skydiving jumps and “put the airport on the map.”
“Now everything will be different. I’ll do a costing and upgrade the airport,” he said.