IF Warrnambool's municipal livestock selling centre was closed the city council could reap at least $9 million by selling the site and its portion of the adjacent buffer zone.
And if all the 50-hectare buffer zone was opened, up to 600 houses worth an estimated $165m could potentially be made available, according to a special report released today.
The report, released ahead of next Monday's city council meeting to decide the yards' future, outlines options to be considered in one of the most contentious decisions in the city's recent history.
Saleyards have been part of the council's operation since 1883 and have been on the Caramut Road site for almost 40 years.
The venture has been at the centre of controversy for about two years, after private company Victorian Livestock Exchange (VLE) approached the council with its plans for a $10m regional livestock centre - first at Garvoc and later at Cudgee.
The council is grappling with expanding housing estates creeping towards the yards and whether to hand its role in the livestock selling sector over to private enterprise.
Councillors discussed the issue in a private committee meeting last night and decided to make public a lengthy report prepared by council officers.
However, the officers’ recommendations for the vote will not be revealed until closer to the meeting.
The report gives a market valuation prepared in August 2007 which shows the 7.8-hectare saleyards site off Caramut Road was worth $5.95m if rezoned for light industry.
The council-owned 11.3ha vacant buffer zone running from the western edge of the yards to Rooneys Road was valued at $3m if it was rezoned for housing.
Land values have risen considerably since the 2007 estimation so the proceeds could be expected to be higher than the 2007 figures.
“With Warrnambool’s current shortage of industrial land and the need for additional ongoing provision of industrial land, the alternative use of the site as a business park may generate similar, or possibly greater, economic development benefits and returns to the local economy,” the report said.
In his summary, city chief executive Bruce Anson said: “Council must consider whether its involvement in the ownership and operation of livestock exchange services form part of council’s future core business.”
He said the saleyards contributed to the local and regional economy, but its location was “seriously challenged” by residential growth, environmental impact of waste, regionalisation and rationalisation of the saleyards industry and increasing responsibility for health and safety risks.
“When these issues are considered collectively the Warrnambool saleyards will no longer be in a desirable location over the medium to long term,” he said.
“Council must be proactive and opportunistic in developing a strategy to ensure that state-of-the-art saleyard facilities are available to agents, buyers and producers in the Warrnambool and wider region.”
The report said growth in the area would limit the saleyards at its current site to only another five to 10 years and a suitable alternative site was unlikely to be found within the city boundaries, while a $7m capital expenditure would be needed to upgrade the yards long-term.
An economic impact study in 2008 estimated a $13.7m loss in annual business turnover in the local economy if the yards closed, but this week’s report says if new regional saleyards opened within 20 kilometres of Warrnambool the spin-off economic benefits for the city could be similar or greater than now.
VLE has recently told the council and stock agents it would be willing to investigate a site even closer to Warrnambool than the Cudgee-Panmure land it has already purchased for the venture.
However, agents have continued their campaign against the VLE plan, preferring the Caramut Road site which they estimate could be upgraded for far less that the council’s $7m figure.
The report will be available from the city council’s website, www.warrnambool.vic.gov.au, from noon today.
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