Two parties have approached Council in the past six months about its 1576-acre effluent irrigation farm on Gorman Rd.

One is investigating its potential for growing vegetables and flowers in “plastic houses.” It hoped to export the produce to China, council general manager Warwick Bennett confirmed.

With the land becoming surplus in two years, councillors decided at their meeting on Tuesday to seek a market valuation and determine a reserve price.

It will then call for expressions “in all options” for 1260 acres of the property.

This could include “sale, lease, joint venture or any other options that a potential investor might want to negotiate with Council.”

These will be publicly considered at a meeting. Mayor Geoff Kettle said Council wasn’t obliged to accept any of them if they didn’t meet requirements.

He declined to give more details about the proposals, saying they were confidential at this stage.

Mr Bennett said Council had been talking to the party interested in growing vegetables and flowers for the past six months.

“Coupled with the (federal government’s) free trade agreement with China, they see an opportunity to set up a business exporting to that country,” he said.

Both Mr Bennett and Cr Kettle said the company was not associated with the owners of Kenmore Hospital, LAJC Energy Pty Ltd.

That company has proposed a Traditional Chinese Medicine research facility at Kenmore, with plants being grown at the complex. Council’s land parcel stretches around the back of Kenmore.

The other party that had approached Council hoped to establish a “similar” horticultural enterprise, Mr Bennett said.

Earlier, a company flagged establishment of a solar farm on the property but “lost interest” given uncertainty over the federal government’s renewable energy target.

Last Tuesday’s discussion was originally pegged for open session.

However Deputy Mayor Bob Kirk said while all councillors were aware of one company’s interest, he knew details of another, which others weren’t.

He moved that talks go into closed session for a briefing from Mr Bennett on the grounds of “commercial confidentiality.”

Despite the Goulburn Post’s objection, the matter was discussed behind closed doors, with only the resolution made public.

Council’s policy states that any surplus land will be sold by public auction unless decided otherwise at an open council meeting.

Cr Kettle defended the confidential talks with parties, saying any expressions of interest would be revealed.

“As far as I’m concerned it’s open and transparent,” he said.

“Everything is on the table and we want to ensure we get the best value for money for Goulburn.

“If a joint venture came up that employed 300 people, then we’d look at that, the same as if someone offered us $7 million to offset the cost of the sewer treatment plant.”

Before the meeting, Mr Bennett sought legal advice on the best method of sale.

Lawyers said there was nothing preventing Council from directly negotiating with a party.

However it recommended a market valuation and strict probity controls.

Instead, councillors decided to call expressions of interest. Staff had recommended this course.

“...It allows Council to not only get market value for the property but (enables) Council to assess if the proposed purchaser will use this property in a way that will economically benefit the region,” their report stated.