RTI documents reveal $2.8m property bought without councillors’ approval

From old theatres to apparently random houses, Bundaberg council CEO Steve Johnston has revealed the almost $3million in real estate he has bought on behalf of the council in recent years and why.

From old theatres to apparently random houses, Bundaberg council CEO Steve Johnston has revealed the almost $3million in real estate he has bought on behalf of the council in recent years and why.

Almost $3million has been spent by the Bundaberg Regional Council in the past few years buying property without having to be approved by elected councillors, a recent Right To Information request has revealed.

Documents, including contracts of sale and emails for seven properties acquired in 2019-2020 were released by the council on August 29 in response to a request from Bundaberg Regional Ratepayers Association president Helen Blackburn.

The documents show property valued at a total of $2,884,500 was bought in the two-year period under the authority of council CEO Steve Johnston.

Mr Johnston has the power to acquire land without the approval of councillors as part of the powers delegated to him under the council’s delegation policy.

In a September 13 media release, Ms Blackburn claimed some of the property purchases were unnecessary and that the use of ratepayer funds subject to the decision of the CEO without the oversight of councillors was “offensive”.

Bundaberg Regional Council CEO Steve Johnston.

“Buying unnecessary real estate with ratepayers’ money is offensive enough, but the decision wasn’t even made by our democratically elected councillors. Instead, the decision was made by one unelected bureaucrat,” Ms Blackburn said.

“What is the point of electing councillors if major financial decisions are made without them? Ratepayers need to hold their representatives accountable.”

BRRA vice-president Dean Cayley questioned the benefit to the community from the purchase of 8 Park St, Bundaberg South for $375,000, which is vacant land within a Flood Hazard Area.

“What benefit does the community gain from … exorbitant property purchases like Park Street, flood zoned land across from Walla Street Skate Park?,” Mr Cayley said.

Mr Johnston gave reasons explaining why each property was acquired, included in our summary of the properties purchased in 2019-2020:

2 Maryborough St, Old Wintergarden Theatres, Bundaberg

The historic Old Wintergarden Theatre building was purchased by Bundaberg council as part of its planned Civic and Cultural Arts Precinct.

Price: $1,200,000

Seller: Arapower Pty Ltd

Contract date: September 5, 2019

Purpose: Community facility

The historic Old Wintergarden Theatre building, better know to locals as the old Blockbuster, was purchased by council from Arapower Pty Ltd for $1.2m in 2019.

First opened in the 1920s, the building was bought by council as part of its planned Civic and Cultural Arts Precinct.

The building is being renovated into a community hub designed by award-winning local architect Tomas O’Malley.

While initial estimates were the community hub would be completed by the end of 2023, council said on Wednesday it “hopes to see this project completed this financial year … pending any unforeseen delays”.

The contract includes a lease for a commercial tenant to use a 1365sq m area of the building for a gym.

The rent for the gym was given as $107,400 per year in the 2o19 contract.

8 Park St, Bundaberg South

Council paid $375,000 for vacant land at 8 Park St, Bundaberg South, which was submerged in the 2013 floods.

Price: $375,000

Seller: Bundaberg GFM Pty Ltd as Trustee for Bundaberg GFM Unit Trust

Contract date: April 17, 2019

Purpose: Open space

This vacant block is in the area adjacent to Saltwater Creek that was submerged by backwater inundation in the 2013 floods.

72a Churchill St, Palace Memorial Building, Childers

The $280,000 purchase of 72a Churchill St gave Bundaberg council full ownership of the Palace Memorial building in Childers.

Price: $280,000

Seller: T & S Ryan Custodian Pty Ltd

Contract date: December 5, 2018

Purpose: Gain full ownership of the Palace Memorial building

This sale gave the council full ownership of the Palace Memorial building, which most notably includes the Childers Art Space and Backpackers Memorial.

The part of the building acquired through this sale included a Subway fast food restaurant, which according to the 2018 contract was leased for $20,645 per year.

6 Ernest St, Childers

The property was acquired by council to expand the Childers’ depot behind the Childers Service Centre.

Price: $200,000

Seller: Richard Charles De Tenon*

Contract date: June 4, 2020

Purpose: Expansion of Childers depot

Council acquired this 972sq m residential property in order to expand the Childers depot behind the Childers Service Centre.

32 Queen St, Cordalba

The acquired property on the corner of Queen St and Cemetery Rd is planned to include green spaces and a basketball half-court as part of the council’s Cordalba Park Masterplan.

Price: $65,000

Seller: Elizabeth Zia, Edward Samuel Zia, Margaret Anne Kathleen Zia*

Contract date: April 24, 2020

Purpose: Park extension

This large 2959sq m residential property on the corner of Queen St and Cemetery Rd was acquired by council to expand Cordalba Park.

Documents on council’s Cordalba Park Masterplan web page show green spaces and a basketball half-court are planned for the acquired property.

According to the website, the concept design was finalised following community consultation in March 2023, and the project is currently in the detailed design phase. No date of completion is listed.

Part of 18 Aloha Drive, Avoca

The parcel of land was bought for an odour control facility at the Avoca Road Sewer System, which was built in the 2020/21 financial year.

Price: $8000

Seller: C. A. O’Brien Pty Ltd (Trustee)

Contract date: December 16, 2019

Purpose: Sewer infrastructure

Council said this 100sq m area of vacant land was acquired for planned upgrades to sewer infrastructure.

Plans included in the contract show the acquired land as part of a possible site for an odour control facility next to the Avoca Road Sewer System.

According to council reports, a dosing station building was built at the Avoca Road Sewer System in the 2020/21 financial year for a total cost of $115,884.

Part of Woodgate Rd, Woodgate

The small parcel of land was purchased as part of the Gregory River Water Treatment Plant development, with the plant beginning operations in April 2023.

Price: $6500

Seller: Redacted

Contract date: December 5, 2018

Purpose: Water infrastructure

Council acquired this parcel of land as part of the Gregory River Water Treatment Plant development.

The plant began operations in April 2023.

*Seller information taken from CoreLogic