❓ Ms. Saffioti questions the Premier regarding the sale of land to Crown Perth, specifically a $30 million discount. The Premier denies the discount was due to an entitlement and attributes it to remediation costs.
AnsweredQoN 112Legislative Assembly
QuestionView source ↗
CROWN HOTEL, BURSWOOD — LAND SALE
112. Ms R. SAFFIOTI to the Premier:
I refer to the sale of land to Crown Perth to develop a hotel
and the Premier's statement in Parliament on 9 August 2012 that it —
has
an entitlement to purchase an additional 10 hectares.
Burswood
has the right to acquire an extra 10 hectares of land adjacent to the casino
complex.
(1) Can the Premier confirm that Crown had an entitlement to purchase
the land?
(2) Can the Premier confirm that he provided
Crown with a $30 million discount on the value of that land on the basis that
Crown's bargaining position, as the Premier believed, was strong due to
that entitlement?
(3) Who provided the Premier with the advice that Crown had an
entitlement to purchase the land?
112. Ms R. SAFFIOTI to the Premier:
I refer to the sale of land to Crown Perth to develop a hotel
and the Premier's statement in Parliament on 9 August 2012 that it —
has
an entitlement to purchase an additional 10 hectares.
Burswood
has the right to acquire an extra 10 hectares of land adjacent to the casino
complex.
(1) Can the Premier confirm that Crown had an entitlement to purchase
the land?
(2) Can the Premier confirm that he provided
Crown with a $30 million discount on the value of that land on the basis that
Crown's bargaining position, as the Premier believed, was strong due to
that entitlement?
(3) Who provided the Premier with the advice that Crown had an
entitlement to purchase the land?
AnswerView source ↗
I thank the member for the question. It would have been a
good thing if some prior notice had been given, as I may have been able to
produce some documentation for the member, but she did not seek that.
(1) Under the
original Burswood agreement, to which an amendment took place in the 1990s,
Burswood does have an entitlement to acquire land. I guess lawyers might ask, ''What
does the word 'entitlement' mean? How strong is it or how weak
is it?'' I accept that point. But certainly the agreements do cater for
Burswood expanding its footprint through the purchase of additional land.
(2)–(3) The
second point of the question, the assertion of a $30 million discount because
of that entitlement, is false. The $30 million below the valuation was based on
the fact that the site would need remediation. The site was therefore, from
memory, valued notionally at $95 million if it was, if you like, unencumbered.
This is not land that can be simply built on; it will require a large amount of
expenditure. The view within government is that it will probably cost in excess
of $30 million to remediate the site for construction. The price was therefore
discounted by $30 million to reflect the true practical value of that site.
Several
members interjected.
Mr C.J. BARNETT : I
have to say that $60 million for the sale of land is not a bad result for the
state, and the construction of a major new hotel with well over 500 employees
is not a bad result for the state.
Several members interjected.
Mr C.J. BARNETT : I
sympathise with the position of residents whose view is affected. Indeed, only
a week ago I went out there and met with them and had a look at the site. They
are adversely affected, but I guess the bottom line is that they do not own a
view; none of us owns a view. The hotel at Burswood has made a number of
concessions to try to ameliorate the effect on them. But the suggestion that
the $30 million so-called discount is related to an entitlement to buy is just
simply false.
good thing if some prior notice had been given, as I may have been able to
produce some documentation for the member, but she did not seek that.
(1) Under the
original Burswood agreement, to which an amendment took place in the 1990s,
Burswood does have an entitlement to acquire land. I guess lawyers might ask, ''What
does the word 'entitlement' mean? How strong is it or how weak
is it?'' I accept that point. But certainly the agreements do cater for
Burswood expanding its footprint through the purchase of additional land.
(2)–(3) The
second point of the question, the assertion of a $30 million discount because
of that entitlement, is false. The $30 million below the valuation was based on
the fact that the site would need remediation. The site was therefore, from
memory, valued notionally at $95 million if it was, if you like, unencumbered.
This is not land that can be simply built on; it will require a large amount of
expenditure. The view within government is that it will probably cost in excess
of $30 million to remediate the site for construction. The price was therefore
discounted by $30 million to reflect the true practical value of that site.
Several
members interjected.
Mr C.J. BARNETT : I
have to say that $60 million for the sale of land is not a bad result for the
state, and the construction of a major new hotel with well over 500 employees
is not a bad result for the state.
Several members interjected.
Mr C.J. BARNETT : I
sympathise with the position of residents whose view is affected. Indeed, only
a week ago I went out there and met with them and had a look at the site. They
are adversely affected, but I guess the bottom line is that they do not own a
view; none of us owns a view. The hotel at Burswood has made a number of
concessions to try to ameliorate the effect on them. But the suggestion that
the $30 million so-called discount is related to an entitlement to buy is just
simply false.
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