❓ A parliamentary question scrutinises the sale of government land below its assessed value, querying the valuation process and justification for the discounted price, citing economic benefits of a proposed hotel development as rationale.
AnsweredQoN 8449Legislative Assembly
QuestionView source ↗
I refer to the decision to sell 5.8 ha of Government-owned land to Crown for $60 million for the purposes of a new hotel, and the Premier's statement in
The West Australian
on 2 August 2012 that the unencumbered value of the land being sold was $95 million, and I ask:
(a) who provided the Government with the valuation of the land;
(b) on what date was the valuation conducted and provided to the Government;
(c) did the valuation of the land take into consideration the fact that the land would need to be remediated, and if yes, what was the estimated cost of the remediation; and
(d) on what basis did the Government assess that the land should be sold for less than the encumbered value and what monetary value does the Government put to each reason?
The West Australian
on 2 August 2012 that the unencumbered value of the land being sold was $95 million, and I ask:
(a) who provided the Government with the valuation of the land;
(b) on what date was the valuation conducted and provided to the Government;
(c) did the valuation of the land take into consideration the fact that the land would need to be remediated, and if yes, what was the estimated cost of the remediation; and
(d) on what basis did the Government assess that the land should be sold for less than the encumbered value and what monetary value does the Government put to each reason?
AnswerView source ↗
Answered
11 September 2012
Response time
33 days
Department of Premier and Cabinet advises:
(a) Landgate (Western Australian Land Information Authority).
(b) 20 June 2012.
(c) The valuation notes that the market value of $95,250,000 has not been discounted by the cost of identifying and remediating any contamination affecting the site or additional development costs associated with deep piling. These costs could be substantial and a figure of approximately $30 million was disclosed.
(d) The final sale price was based on the net benefits to the State of a hotel development in Perth, including the estimated $60 million injection of tourism spending, estimated 700 construction jobs, estimated 500 hospitality jobs, estimated $5 million payroll tax per annum and estimated $52 million per annum in casino tax if additional gaming machines and tables are approved by the Racing and Wagering Commission. In addition, the sale price was entirely consistent with the Liberal National Government's hotel development incentives policy announced on 26 October 2011.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
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(a) Landgate (Western Australian Land Information Authority).
(b) 20 June 2012.
(c) The valuation notes that the market value of $95,250,000 has not been discounted by the cost of identifying and remediating any contamination affecting the site or additional development costs associated with deep piling. These costs could be substantial and a figure of approximately $30 million was disclosed.
(d) The final sale price was based on the net benefits to the State of a hotel development in Perth, including the estimated $60 million injection of tourism spending, estimated 700 construction jobs, estimated 500 hospitality jobs, estimated $5 million payroll tax per annum and estimated $52 million per annum in casino tax if additional gaming machines and tables are approved by the Racing and Wagering Commission. In addition, the sale price was entirely consistent with the Liberal National Government's hotel development incentives policy announced on 26 October 2011.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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