A Canberra businessman was given a 99-year lease over Ginninderra Village by the Department of Environment, Land and Planning for tens of thousands of dollars under its present market value, according to documents received by The Canberra Times.
The lease was converted from a 50-year lease under which rent is paid. At the time the businessman owed back-rent of more than $100,000.
The businessman, Mike St Clair, got the 99-year lease for $70,000, yet three sub-leases of businesses at the site show a return $75,000 a year.
Mr St Clair said yesterday that he had had a verbal understanding in 1982 with the then Minister for Territories, Michael Hodgman, that if he took up a short-term lease with rent on Ginninderra Village he would get a rent-free 99-year lease (like the standard residential lease) at market value the following year.
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