The developer of an aged care facility at South Goulburn has pulled out of the project, citing high council infrastructure charges.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
It has prompted the council to look elsewhere for another provider to fill the void.
General manager Warwick Bennett told Tuesday night's meeting that Signature Care had withdrawn a planning proposal, that would have paved the way for a 144-bed complex at 134 Lillkar Road, off Ducks Lane.
Councillors in July decided to progress the planning proposal which would have allowed a development application to be lodged for the estimated $30 million facility.
But now it is off the table all together.
READ MORE:
Mr Bennett told The Post that Signature Care had stated in a recent letter that it was withdrawing the planning proposal due to the infrastructure charges.
"We have sent three emails and made a couple phone calls about meeting with them and discussing a compromise deal," he said.
"They won't even answer and seem to have tossed the toys out of the cot. That's fine and they're entitled to do that."
However the GM said the council would now work with federal aged care minister, Richard Colbert, and Hume MP Angus Taylor to secure another provider for the beds and prevent the developer moving them elsewhere. The government announced the allocation under the 2018/19 Aged Care Approvals Round in April, 2019. It attracted $10.4 million in annual subsidy.
"We're very confident there are ample service providers available and we have a series of meetings between now and Christmas to explain our current position, Mr Bennett said.
He did not believe the beds could be easily transferred to another region.
The council had proposed to charge $1,831,362 for water, sewer, stormwater and roads and traffic infrastructure. Following a submission from Signature Care to reduce this, councillors proposed a compromise whereby $626,964 of this amount could be paid over two years.
CEO Graeme Croft had argued that $1,072,063 in infrastructure charges was more comparable to other councils where he had also developed aged care facilities.
The Goulburn complex was expected to employ 170 people, and generate an additional $6.4m into the local economy.
On Wednesday, Mr Croft rejected suggestions he wouldn't consider a compromise deal. He told The Post he had put forward a comprehensive submission to the July meeting, outlining his arguments and comparing Goulburn Mulwaree's charges with other councils.
"They said a flat out 'no.' The money would still have to be paid over two years," he said.
"We haven't heard anything from them since...On Wednesday, my CEO took a phone call from their economic development officer saying they wouldn't be moving on the charges."
He maintained they were far higher than other councils, including Wagga Wagga, where Signature Care had started on earthworks for a 144-bed aged care facility. Here it was paying $1.4m in infrastructure fees.
In addition, the company had started a 144-bed project at Grafton where Mr Croft said charges were also less.
He argued Victoria did not levy infrastructure fees and in Queensland, where Signature Care was building more aged care, the state government had introduced incentives to stimulate the economy. For its 180-bed Maryborough facility it meant $700,000 in charges. There was also fee relief at its 144-bed complex at Jimboomba, 40km south of Brisbane.
"Right across the economy there are changes and incentives to stimulate economic activity but not in Goulburn," Mr Croft said.
"We look at where we will get the best result so we put our dollars into places that have the best incentives.
Mr Croft said he understood the council's argument that had to be consistent but argued it should compare its charges with other local government areas.
"At the end of the day it affects everyone," he said.
"...(The fees) would be a disappointment in normal times but it's sheer bloody mindedness that it's happened during a retraction in the economy and when there are so many efforts to stimulate activity. It's pretty short-sighted."
The CEO said his company had not decided whether it would try to transfer the bed allocation to another region. He maintained it was possible under the Aged Care Act and that his company had previously shifted a bed allocation from near Maryborough 900km to south of Brisbane.
The Goulburn facility had to be started within four years of the federal decision and be completed by six years.
Asked why he hadn't investigated the fees before starting the process, Mr Croft said councils applied charges differently and he hoped for a good outcome.
His company has advised the Lillkar Road landowner it did not wish to exercise its option to buy the two-hectare parcel.
'Fair and consistent'
Mr Bennett said on Tuesday that while the council's infrastructure fees were high, they were "nowhere near the highest."
"(They are at this level) because we put so much emphasis on a quality product in terms of water and wastewater and new development," he said.
"We have just spent $35m on a new wastewater treatment plant to meet high environmental standards. It is not fair that the community pays for that and that developers come in and don't pay the same as existing ones."
Mr Bennett said every other Goulburn developers had paid the full fees except Tribe Brewery. In 2018, councillors agreed to defer water and sewer charges in the first year and grant a 50 per cent discount on these. It equated to $3,285,000 in forgone income but the company had to meet job targets.
We care about what you think. Have your say in the form below and if you love local news don't forget to subscribe.
.