Despite strong opposition from a few City of Bunbury councillors, the decision to purchase the old Souths Furniture building was approved.
On Tuesday, March 20, council voted in favour of a due diligence report on the building and for the city to go ahead with its acquisition.
Council voted for the city to go ahead with the due diligence report at its meeting on January 23, 2018.
The executive recommendation included accepting the report as satisfactory and allowing the city to go through the acquisition.
The recommendation called for it to be funded through the 2017/18 budget.
Councillor Brendan Kelly spoke out against the motion and said he was not satisfied that the proper due diligence had been achieved.
“I am not convinced that the liability and burden that comes with the purchase of the Souths property might be outweighed by any advantage to the ratepayer,” he said.
During his argument he said the vendor had refused to negotiate on price which meant the city were willing to pay 14.3 per cent over an independent valuation of the property.
“We are being asked to pay an inflated price for something for which there is no current purpose,” he said.
“Why would we as City Councillors provide an advantage to a seller to the disadvantage of the ratepayers?”
Councillor Kelly also stated that the purchase would create an immediate and future liability for the city.
“Irrespective of whether or not the building contains asbestos, or is proven not to be a Contaminated Site, or the plumbing connection doesn’t need a total overhaul, or the buildings might encroach onto third party private properties, each of these investigations (desktop or otherwise) and their solutions, will cost ratepayers,” he said.
“At latest count by the Principal of a locally based Real Estate Company, there are 54 vacant properties in the immediate CBD area. Souths is considered one.
His final argument outlined how the purchase of the CBD building was of no strategic benefit.
Councillors Betty McCleary and Karen Steele also spoke out against the motion during the meeting.
Mayor Gary Brennan and councillor Tresslyn Smith, in favour of the move, discussed the positives of the due diligence report and the purchase of Souths.
The Mayor and City chief executive officer Mal Osborne will now discuss the purchase price with the owners.