City of Greater Geraldton defends housing investment for Olive Street precinct, saying ROI is worthwhile

The City of Greater Geraldton has defended spearheading a $6 million seven-house residential development, saying the return on investment in the future will make the decision worthwhile. On Tuesday, Housing Minister John Carey visited Geraldton to announce the State Government would contribute $1.6 million towards the city’s $5.99m bill to build seven houses on council-owned land in Olive Street in Mahomets Flats. The news sparked debate on social media, with many — including former mayor Shane Van Styn — questioning why local government was taking the lead on a housing project at the expense of ratepayers. “Wait, so now the State Government isn’t even supplying its own housing and instead slugging ratepayers to house its workers? This is diabolical,” he said. Mayor Jerry Clune said the project was an opportunity for the city to help provide relief in the housing market. “There’s certainly a need for that style of housing, it’s not community housing, it’s upper end, upper style housing,” he said. “So why not use the land and activate it so, and our business case showed that we’re going to actually be making money on the deal long term.” The city estimated its return on investment was set to be 3.5 per cent a year compounded. Mr Clune said funding from the State Government further reduced the risk, saying they wouldn’t have considered the deal if the State hadn’t been willing to invest. “I can stand and with my hand on my heart and safely say it’s a good deal for the City of Greater Geraldton because we don’t own much property where we’re going to receive a good return on our investment,” he said. “So ultimately it means ratepayers aren’t going to be forking out money for things that we could (in the future) because we have a revenue stream outside ratepayers.” The houses once built are expected to be used to attract and retain staff in key professions, including teaching, healthcare, and police. Mr Carey said the State Government’s investment created a win-win situation for the government and the ratepayers in Geraldton. “Every addition of a home across the continuum assists regional housing markets, so whether it’s building a new social home, whether it’s providing supported accommodation, whether it’s providing pro housing, or whether it’s initiative like this, it all assists,” he said. “Housing is everyone’s responsibility - all tiers of government and what I love about this is that the council has stepped forward, identified land, identified a model they own, the housing which provides an asset to ratepayers, but it also boosts supply. “I like this model where the State Government provides assistance, but ultimately ratepayers also keep this asset and they boost housing supply.” It’s expected each house will cost about $770,000 and will be made available to the Government Regional Officers Housing Program, which offers subsidised accommodation for key public workers. The Olive Street housing project is also using more than $3m in funding leftover from the revitalisation of Beresford Foreshore.