Yowani Golf Club plans to build a 230-dwelling housing estate on its lease, drawing fire from Independent MLA Michael Moore who said the community stood to loose up to $10 million from a misuse of the lease system.
“”If the club does not want land for golf, the purpose for which it was given a very cheap lease, then it should hand it back,” he said.
The general president of Yowani, Pat Griffin, said the club had selected a preferred developer. The development would be done with Yowani having a major say in design so it is integrated with the course.
Members would have first option on the dwellings.
“”It will be a very desirable place to live, suiting those close to retirement who wanted a secure place,” he said.
The revenue would help Yowani _ in North Canberra _ develop its facilities. Other golf courses, such as Belconnen, Capital and Gungahlin, were doing housing developments, and Yowani had to get the revenue to compete.
With the Government having a 50-50 in-fill program it was a good opportunity for Yowani, he said.
The Minister for Environment Land and Planning, Bill Wood, said several studies had to be done.
“”The process should continue, with what outcome remains to be seen,” he said. “”Traffic is an issue and it looks like a difficult one.”
As to the community benefit, Mr Wood said, “”Rough figures show that the betterment tax will be substantial.”
Mr Moore, however, said the development flew in the face of leasehold principles.
Yowani had been given a lease very cheaply for a golf course, not for housing. If housing were permitted, it would increase the value of the lease enormously. But that was the community’s money, not the golf club’s.
The club did not own the land; it owned only a golfing lease, and should not be allowed to convert its golf land into a housing estate.
Under the present concessional betterment-tax regime, the community would lose at least $5 million worth of asset to the golf club.
And compared with resuming the land and auctioning it publicly as housing land, the community loses nearly double that.
Under the lease, the Government is able to resume all land that the club does not need for golf.
Mr Moore said, “”I am sure the club is not doing it intentionally, but it is ripping off the community”.
Mr Griffin said the area was the driving range along Ellenborough Street. An access road would be built off Ellenborough Street. There was not enough land to add nine holes.
The club had had discussions with the Minister Planning, Bill Wood, and Opposition Leader Kate Carnell.
Several studies had yet to be done, including traffic and environment. Then nearby residents would be invited to a meeting. Club members had overwhelmingly supported the plan.
Mr Griffin expected it to be 18 months to two years before the first sod was turned. He could not put a figure on the revenue for the club, “”but it would be in the low millions”.
The revenue would all be used to improve the club which would attract more members.
“”Membership is more on the stagnant side than the dynamic side,” he said.
The course needed to be fenced, the carpark sealed, a finishing hole near the clubhouse was needed and general work was needed around the course.
Mr Moore says, however, that the land is well suited for in-fill if Yowani no longer needs it. The land is close to major trunk routes and would give a much-needed boost to North Lyneham shops which were struggling.
On the traffic issue, there has been some debate about whether nearby Ginninderra Drive should be continued through to Northbourne Avenue, or whether Ellenborough Drive and Mouat Street should be upgraded to take Belconnen-to-City traffic.
The nearby sporting clubs object to the former because it reduces their development potential. The nearby residents would like the extension because it would divert traffic noise.
Mr Griffin said Yowani’s plan would not preclude either traffic option.
COMENT:
Charity and sporting leases have caused controversy in Canberra for 20 years. They have got land for next to nothing for charitable or sporting purposes. Yowani, for example, was given its lease for next to nothing 40 years ago. Then as development occurs around them, they have tried to treat their leases as freehold and sold part of them for offices or housing, making windfall profits and paying less-than-value betterment taxes.
Betterment changes, however, were changed last year for residential sites. The rate remained at 50 per cent, but the method of valuation changed. The “”before value” was lowered, so in effect more tax is paid. None the less it is still lower than the full market value of the change in lease purpose or land use that would be obtained at auction.
When Canberra was founded in 1913, the leasehold system was adopted to prevent land speculation that dogged the new towns in America and elsewhere.