THE City of Wanneroo is considering buying land, which is zoned private clubs and recreation, from the Sun City Country Club to continue operating the golf course there.
Land zoned private clubs and recreation can also be used for a hotel, tavern, night club, holiday accommodation, reception centre, caravan park and park home or a range of community uses within this zoning multiple dwellings, residential building and retirement village are discretionary uses.
On Tuesday, July 23 the council went behind closed doors to discuss an item titled Acquisition of land in northern suburbs.
Before the councillors met again on Tuesday, July 30 the report was made public online.
The report said up for discussion was a City of Wanneroo controlled course option and a second option where the operations were completely outsourced to the Sun City Country Club (SCCC).
Option 1 the city controlled course (preferred option) includes a nominal purchase price, in exchange for the City of Wanneroo undertakings to upgrade buildings and complete course masterplan (estimated at $3 million), payout of SCCC loan of $490,000 (estimated per 2017 accounts), defined public access times and pricing in line with other city municipal courses and defined SCCC exclusive competition times-days and member benefits such as member only Tuesday am, Thursday pm and Saturday am with member shared rights at all other times.
Option 2 with operations completely outsourced to the SCCC includes a land purchase price (at market value for actual use) utilised by SCCC to the Associations objects, minimal obligations to/by to the city and land acquisition estimated at up to $2.2m and a long-term ground lease granted by the city.
“Depending on duration this could be at a nominal rate in recognition that the entirety will become a municipal course in time (when population demands it),’’ the report said.
“A nominal rate would not cover the city’s acquisition costs but it is doubtful that the SCCC could service a commercial rent based on historic performance.’’
The report said the city is reviewing the public golf courses, which it operates at Carramar and Marangaroo, as part of a master plan activity.
“Through the management of these two golf courses, the city has developed a strong base of experience to manage and maintain golf courses.’’
Each golf course has more than 70,000 participants each year and provides a net income stream to the city of more than $1.2m.
“The Sun City Golf Course provides an opportunity for the city to own and operate a public golf course within the North Coastal ward of the city and within the strategic metropolitan activity centre of Yanchep for the benefit of the public, the members and visitors.
“The location of the course is strategic, being about 900m from the Yanchep train station and the Yanchep city centre.
Sun City Country Club general manager Jim Danas has been contacted for comment.
The report recommends the council 1. authorises the chief executive officer to start discussions with the Sun City Country Club for the acquisition of the SCCC land based on the following principles:
a) Land ownership offer options;
b) Full public access apart from two mornings and one afternoon;
c) Discrete private member facilities and rights;
d) Maintenance of course and infrastructure;
e) Implementation of Golf Course Masterplan (golf course holes, bunkers and fairways);
f) Establish what agreements the SCCC has committed to;
g) Provision of historical financial performance and
2. authorises the chief executive officer to undertake further due diligence toward a potential purchase and present a further report to the council for consideration of the final negotiated terms and financial model.
