Council Backdown to Buy Pasadena

 

Source: Manly daily

Asking price for Pasadena waterfront property could reach $15m  

Urgent meeting to decide the future of Pasadena

THE asking price for Northern Beaches Council to buy waterfront building Pasadena could reach $15 million following a backdown to compulsorily acquire it.

On Wednesday, councillors voted to rescind a motion put forward by former administrator Dick Persson to buy the Church Point site, almost a year to the date from the original decision.

But following this the council came back with a formal offer to the site’s owner, Paul Peterkin, on Friday.

Council is believed to have offered the Pasadena’s owner $7.8m for the site on Friday. Picture: Adam Yip / Manly Daily

It’s believed the council offered Mr Peterkin $7.8m for the site, which council said he rejected.

Mr Peterkin bought the site for $2.4 million in 2012.

The council is believed to have received about $8 million from Pittwater state MP Rob Stokes for the purchase as part of a merger-sweetener grant.

Cr Rory Amon said industry specialists had valued Pasadena at much more than the council had available.

Council has been trying to acquire the Pasadena. Picture: Adam Yip / Manly Daily

“I wouldn’t be surprised if he wanted $15 million. That’s what other people in the industry have said to me about what they think its value is,” Cr Amon said.

“I wouldn’t be supportive of that, not at all.”

Mayor Michael Regan responded to the claim by saying: “Cr Amon is being mischievous, given he is fully aware of the independent valuation council has of the site.”

The council could theoretically buy the site for under the $8 million it has and lease it back to Mr Peterkin to run the business.

An outside shot of the Pasadena. Picture: Adam Yip / Manly Daily

When asked if this was a possibility, Cr Regan said: “If lawful, council could absolutely consider that as part of its negotiations.

“No ratepayers funds will be spent.”

An urgent meeting was called by councillors Amon and Alex McTaggart in a bid to stop the council going down the compulsory acquisition route.

At that meeting councillors baulked at the idea of entering the process which, once it was started, would need to be seen through.

Mr Peterkin bought the site for $2.4 million in 2012.

It could have resulted in the council being forced to pay whatever value was determined by the State Government.

Councillors were unable to speak about the contents of the meeting as it was a confidential debate.

But it is believed the council’s valuation did not include the waterfront Crown land, which Mr Peterkin leases, likely costing the council millions more.

Cr Regan said it was a win for the community. “Removing the requirement for compulsory acquisition reduces the risk to council and our ratepayers and gives us more flexibility to negotiate in good faith with the owner,” he said.

If the council is unable to use the $8 million from Mr Stokes it will have to write to ask for the funds to be reallocated elsewhere, which has not been guaranteed.


 

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