Issue 96 of Wyong Regional Chronicle

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July 19, 2016

Your independent community newspaper - Ph: 4325 7369

Issue 96

Sale of Kiar Ridge land marks the end of the first regional airport LL, a major real estate investment company, has been engaged by Central Coast Council to sell a landmark 87.95 hectares of land at Kiar Ridge.

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The land was acquired by the former Wyong Council from Terrace Towers in June 2014 for $10 million and became the preferred site for a Central Coast Regional Airport with the capacity to expand to the status of an interstate and international terminal. The site is situated immediately west of the M1 motorway and bounded by Hue Hue and Sparks Rds. According to JLL, the site includes 56 hectares of DA-approved developable industrial land in a 69 lot masterplan. If developed, the land would yield a total floor area of 556,400 square metres. According to Mr Laurie Eyes from the Central Coast Regional Airport Action Group, the purchase price paid by the Wyong Council in 2014 was double the NSW Valuer General’s valuation and the land was purchased without obtaining an independent valuation. At the time of acquiring the land, former mayor, Mr Doug Eaton OAM said: “There is no demand for industrial land as has been proved by the fact that the existing Terrace Tower land has been vacant and undeveloped for at least seven years.”

An expressions of interest sign has been erected on the land acquired by Wyong Council in 2014 as the site for a Central Coast regional airport

The land is zoned IN1 for industrial use and E2 Environmental and is now being sold as a site for industrial development. Expressions of interest close on Thursday, August 25. Central Coast Council’s newlyappointed group leader of Assets, Infrastructure and Business, Mr Mike Dowling, was general manager of the Terrace Towers group before he was appointed director of property and economic development by Wyong Council in January 2015. Kiar Ridge was abandoned as the preferred site for a Central Coast Regional Airport by Wyong Council in a confidential council session in October 2015. The history of Wyong Council’s proposal to develop an airport at Kiar Ridge was revealed in the confidential business

paper discussed by councillors on October 28. “Investigations into the proposed CCRA [Central Coast Regional Airport] Kiar Ridge site indicate that the development cost is very high due to property acquisition and site preparation costs to remove Kiar Ridge,” said the confidential report, prepared by the council’s Property and Economic Development directorate. “The site also carries significant ecological obligations for council with an Environmental Offset requirement of the order of 1,400 hectares,” the confidential report said. According to the report, financial modelling indicated that the Kiar Ridge proposal would not have generated a positive cash flow within the first 15 years of operation. The confidential business paper outlined

the history behind council’s acquisition of the Kiar Ridge land. “In March 2012, the State and Federal Government’s second Sydney Airport Site Selection Study… identified Wallarah as one of five potential Type 1 (International) airport sites. “Council subsequently included the proposed airport site at Kiar Ridge in the Draft 2013 Wyong LEP,” the confidential report to Wyong Council said. “The Wallarah site proposal was not feasible as it crossed the Local Government boundary, required the realignment of the M1 motorway and had some terrain issues which would affect runway suitability.” As a result, Wyong Council concluded the airport proposal required further investigation and

was subsequently taken back out of the 2013 LEP. Council then resolved to investigate the feasibility of a smaller domestic and regional airport at Kiar Ridge. “Investigations have included site proving and engineering cost estimates, passenger demand forecasts, ecological studies, preliminary master planning, community consultation plan and economic impact studies,” the report said. “The 2013 Central Coast Regional Airport Project Plan established the airport development as a significant catalyst for economic development and employment generation,” it said. In June 2015, council also endorsed the investigation of alternative options including “do nothing” and developing the existing aerodrome at Warnervale. In March 2015, Wyong Council took over the management and operation of Warnervale Airport from the Central Coast Aero Club. The aero club had managed the site for 25 years and the new deed provided for council acquisition of the aero club’s property on the airport, with provisions to relocate its facilities to another site on the airport. The alternative option to develop Warnervale which resulted in the Kiar Ridge land being listed for sale, was not deemed to offer “the longterm capability of the CCRA Kiar Ridge site

for the operation of larger aircraft” but “it could be viably developed into a significant regional airport offering regional intrastate and interstate airline services.” The October 28 confidential meeting subsequently determined to abandon the Kiar Ridge site for an airport and focus on moving forward with developing a general aviation hub and regional airport at Warnervale. A further $6 million has been allocated in the 2016-17 budget for stage 1 development of the Warnevale Airport western precinct and acquisition of eastern land for the airport development. Speaking after a recent Central Coast Council meeting, Mr Dowling said the development of the regional airport at Warnervale provided opportunities for employment growth. “It has always been the intention of this council to acquire a strong general aviation hub including aircraft repair, design and providing hangars for general aviation,” Mr Dowling said. He said demand for such services outside of Sydney was strong. Media release, Jun 14, 2015 Wyong Council media Website, Jul 18, 2016 http://rca.jll.com.au/ property-land+developmentnsw--502012306 Agenda item 7.1, Oct 28, 2016 Wyong Council ordinary meeting Interview notes, Jun 29, 2016 Mike Dowling, Central Coast Council Jackie Pearson, journalist

Office: 120c Erina Street, Gosford Phone: 4325 7369 Fax: 4321 0940 Mail: PO Box 1056, Gosford 2250 E-mail: editorial@centralcoastnews.net Website: www.centralcoastnews.net


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