East Perth Primary School: Lord Mayor Basil Zempilas calls on Premier for a ‘good offer’ in carpark land grab

Perth City Council has rejected a State Government bid to convert an inner-city carpark into the CBD’s first public primary school without money changing hands, with Lord Mayor Basil Zempilas calling on the Premier to “come back with a good offer”. Last April, the State Government proposed the city transfer two-thirds — 1.6ha — of Nelson Crescent’s Queens Gardens carpark to facilitate the development of East Perth Primary School free of cost. But at Tuesday night’s council meeting, the City of Perth council voted 7-1 in support of a motion that would decline the city’s entry into the major land transfer. The city’s CEO Michelle Reynolds will continue to engage with the State Government to “negotiate satisfactory terms”. David Goncalves was the only councillor to vote against the motion. “The State Government has requested the city transfer 1.6ha of land, which is going to be seen as a scarce resource within the City of Perth, free of cost for the development of a public primary school,” Mr Zempilas said. “I’m on the record in saying we welcome a primary school in East Perth or inner city area, and have indeed indicated that if the deal was right, we are keen to be delivery partners in that objective. “But I note ... the State Government is responsible for providing public primary schools, local governments have never been obligated to cede land for school infrastructure at zero cost to the State.” Mr Zempilas went on to accuse the State Government of “making numbers up”. “The State Government have told us, ‘you’re going to receive a benefit because at the moment you’re losing money on those car parks’, but guess what, we’re not,” he said. “The State Government tells us we’re losing $6.4 million, in fact, we estimate a net cashflow positive of $1.5 million this year ... they’re making numbers up. “They also added to the picture $14 million of social impact ... I’ve heard others describe these numbers being trotted out by the State Government as voodoo economics.” Under the Chevron Hilton Act 1960 the site can only be used as a carpark, but now the State Government has made a proposal to “unlock” the land’s development potential by repealing the Act. According to the State Government, the 871-bay carpark is estimated to have a land value of $27 million. “The land transfer would remove the majority of the future development potential of the site through the transfer of freehold title to the State Government for the development of a public primary school,” a staff report reads. “The transaction would also result in a financial cost of $29.9 million to the city over 30 years, negatively impacting its financial capacity to provide facilities and services to the community. “Entities directly impacted would include the WACA, Gloucester Park, Main Roads and small businesses operating in the east end of the city that use the carparking facility.” The item was added to the city’s council agenda less than 24 hours before the council meeting, prompting Cr Goncalves to say he would not vote for a motion “without the time for due deliberation and discussion”. “It’s quite an extraordinary situation that this item has not had the opportunity to go through our agenda briefing session without the opportunity for the committee to look at it to provide feedback, to provide delegations, or even to provide submissions, and yet we are being asked for an urgent decision when this are less clear than ever,” he said. Cr Liam Gobbert weighed in on the debate, accusing the State Government of “dangling a carrot”. “Dangling this carrot by offering development potential that already exists is not fair compensation,” he said. “The city in negotiating on ratepayers behalf to receive compensation is an appropriate response to the state’s office offer and shows sound financial management on behalf of the council.” City of Perth CEO Michelle Reynolds confirmed the city had never received a financial offer for the land. “At the moment the deal being offered to us by the State Government is $0 cash in compensation and no consideration of a land swap,” Mr Zempilas said. “I think it’s impossible that the Premier would look at this deal and think this is fair to the the ratepayers of the City of Perth to take land off them that they own and not compensate them at all. “Premier, come back to us with a good offer (and then) we can get on with it and get this primary school in East Perth built.”