Valuation under scrutiny

Kooweerup Motorcycle Club instructors Merv Williams and Jason Miles with Dex Kelly. 101261

By Rowan Forster

 Council’s $3 million valuation of Lot 3 on 335 McGregor Road – earmarked for the region’s new motorsports facility – has raised eyebrows across Pakenham.

The property was purchased by Cardinia Shire for $3.4 million 14 years ago, now selling at a discount despite the eye-watering growth in property prices during the past decade.

A whopping 64 hectares of land, it could house more than 3000 people if subdivided.

It comes just months after 69 hectares of vacant land near Warrnambool fetched between $8 million and $10 million – about three times Cardinia Shire’s asking price.

Kooweerup Motorcycle Club committee member John Spencer fears a botched valuation could effectively shaft ratepayers of millions.

“We are questioning the fact it is being sold at that price when our president spoke to a real estate agent who said they could get $75,000 per hectare,” he said.

“Now the corporate body that has done no hard work is being sold the land at this price, and we have to lobby the government for another site to be rezoned.

Under the current arrangement, if Cardinia Shire fails to have the club’s alternate site rezoned by December 2019, they will be accommodated at 335 McGregor Road.

“Even the land they’ve opted to give us if the other site falls through, it is under the powerlines and that really restricts our use,” Mr Spencer said.

A property value estimate provider contacted by the Gazette, who did not want to be identified to maintain their relationship with council, believes the $3 million price tag is “selling the land short”.

“To provide an amenity like this in one of Melbourne’s biggest growth corridors – $3 million is a bit of a bargain,” he said.

“We’ve seen land of a similar size sell for nearly double the amount in regional townships about the same distance from the CBD.

“I wouldn’t say it’s overly off the mark, but ratepayers have a right to be sceptical.”

The parcel of the facility sold to a corporate entity will likely see the development of an amphitheatre, suites, a hotel and a medical centre.

Cardinia Shire governance manager Doug Evans defended the site’s valuation, vowing that the proceeds would be injected into the facility and both of the clubs.

“Council sees significant economic benefit to the local community in the development of a world class motorsport facility, he said.

“The recent valuation for lot 3 by an independent registered valuer was $2.3 million.

Now the corporate entity who have done no hard work are being sold this entity, and we have to lobby the government for another site to be rezoned.

How about you offer them another site,

They’ve offered us all of the land under the powerlines and that really restricts our use.

“Council has resolved that if the sale proceeds, the entire $3 million received will be used to purchase any additional land required for the use of the Kooweerup Motorcycle Club and the Pakenham Auto Club and to provide capital works for building, accommodation or track works for both clubs.”