WHO’S GOING TO PAY THE PARKING BILL WHEN THE COUNCIL MOVES IN TO THE NEW ADMIN CENTRE?
Adele Carles says the sale of the 843 bay Queensgate Carpark by the City of Fremantle to Sirona for $16.5 million is a decision that will haunt generations of Freo ratepayers to come.
“This decision to sell the Queensgate Carpark was a financial disaster for Fremantle. Not only did the Council sell it cheap without a public tender process, it failed to factor in the real future income streams it stood to lose. To add insult to injury, when the Council moves back into the new Admin Centre, it will need to find an estimated 200 parking bays for its staff.”
The bottom line is, Council needed a large portion of the 843 bays at the Queensgate Carpark for its own staff at the new Admin Centre. It’s now created another financial headache to be solved when they return to the Admin Centre.
Assuming 200 car bays are required for 220 working days per year at $9/day early bird parking rate, this equates to an additional cost to ratepayers of around $400,000 per year when the Council moves to the Admin Centre.
“The big picture of the Queensgate Carpark sale is more devastating though. The privately owned 450 bay Collie Street carpark sold for $38 million, equating to $84,400 per bay. Queensgate car park was sold for just $19,500 per bay. Based on the Collie St car bay values, the Queensgate Carpark may now be worth closer to $70 million, yet Council sold it for just $16 million.”
Additionally, the Council owned Point Street carpark has been sold to Hilton DoubleTree and its now sitting locked to the public, so that is no longer a parking option.
Council has also sold its Spicer Site Carpark, with a hotel planned for the site, while its Bannister Street Carpark and Josephson Street Carpark have been closed and sold to property developers for apartments. Where are people supposed to park?
Ratepayers will never be able to afford to own another property like the Queensgate Carpark. “It is gone forever and with it, so has the free parking option for staff and the future parking revenue for the remaining bays. The financial incompetence is breath taking” says Adele.
Just when you thought it couldn’t get any worse…
At precisely the same time Council was planning to sell its 843 bay Queensgate Carpark for $16.5 million, it was planning to build a new 450 bay car park next to Fremantle Oval for $15 million. Hard to understand the logic…