THE City of Wanneroo has bought Splendid Park from Yanchep Beach Joint Venture with Landgate documents indicating settlement took place about 10 days ago.
On June 19 a title search showed 1 Splendid Ave was owned by St Andrews Private Estate whereas a title search yesterday listed the City of Wanneroo as the lot’s owner.
A report in the city’s May 5 agenda said the city and Yanchep Beach Joint Venture (YBJV) had signed a deed of agreement for the area previously known as Yanchep active space back on February 11, 2014.
Under the agreement YBJV could either transfer Splendid Park as its public open space contribution in relation to development of land in the area or sell Splendid Park to the city, on terms specified in the deed.
YBJV elected to sell Splendid Park to the city, which had paid YBJV a peppercorn rent of $1, allowing the city to operate and manage the site as sporting ovals and facilities.
The agenda report said in order to facilitate the city’s construction of a skate park at Splendid Park, the city and YBJV had entered into a variation of ground lease on December 20, 2019.
When it came to the sale YBJV objected to the valuation provided by the city’s valuer IVWA, noting that the englobo rate was not consistent with the rate recommended by YBJV’s valuer, CBRE.
According to the agenda report in late 2019 and early 2020, IVWA and CBRE compared their respective valuations for Splendid Park and comparable sales evidence which led to IVWA recommending the englobo valuation be increased to $51 per square metre, resulting in a price of $6,530,040 for the 12.8ha site – an increase of $448,140.
The report said the reason for IVWA’s amended valuation was an additional comparable sale at 148 (Lot 9502) Toreopango Ave, which had not been included in the comparable sales used in IVWA’s original valuation.
IVWA also confirmed that the updated valuation was consistent with the terms of Amendment No. 122.
On April 16 YBJV accepted the city’s offer and according to the report requested that settlement happened preferably by mid-May 2020.
“Administration is satisfied that the updated valuation, as agreed by YBJV, is in accordance with the terms of the deed,’’ the report said.
“Implementing the deed does not strictly require council approval, but administration considers that the endorsement recommended in the present report is appropriate, given the strategic significance (of) Splendid Park and the amendment to the valuation.’’
A motion that the settlement of the acquisition of Splendid Park, by the city in accordance with the terms of the deed of agreement dated February 11, 2014 between the city and YBJV was unanimously approved by councillors.
In March this year a report presented to the council on the annual review of costs of the Yanchep-Two Rocks development contribution plan (DCP) said on behalf of the DCP the city had borrowed funds from the Commonwealth Bank of Australia equating to $9 million.
“Further borrowing of about $4.6m will be required over the next 12 months to facilitate the DCP’s portion of the land acquisition of Yanchep district open space (Splendid Park0 $4.2m and to make a cost apportionment adjustment between the city and the DCP, which is based on the total estimated dwelling yield proposed in the annual review,’’ the report said.
Last year the council approved a loan of $4.6m at a special council meeting on June 28 to acquire the land.