'Not unusual': State Govt defends $11m spend on one corner

The State Government says spending almost $11 million on a community shopping centre it requires one corner of for future transport upgrades was "not unusual”.

SOLD: The Warana Village Shopping Centre has changed hands. Picture: ldemarco

THE State Government says spending almost $11 million on a community shopping centre it only requires one corner of for future transport upgrades was "not unusual".

The Department of Transport and Main Roads bought the Warana Village Shopping Centre for $10.75 million in early-October.

The private deal for the site, which includes the B Fresh Market Cafe, Patton's Discount Meats and the Point Cartwright Seafood Market, was struck via the Department's Early Acquisition Policy.

Under the policy, the Department accepts early acquisitions where project planning identified a preferred alignment and the landowners had experienced genuine hardship.

In this case, one corner of the land at 239 and 245 Nicklin Way, Warana, had been earmarked as required by the Department for its CoastConnect transport upgrades.

CoastConnect is an initiative to increase sustainable travel on the Sunshine Coast, but planning hadn't progressed much since 2011 when the route alignment was finalised.

SITE: The Nicklin Way property and the proposed corner needed as part of the CoastConnect plans. Picture: DTMR

The CoastConnect plan involved building a bus stop near the Warana Village Shopping Centre site.

Commercial property industry workers admitted their surprise at the almost-$11 million paid for the entire site instead of a negotiation on the corner of land required.

A Department spokesman said it was "not unusual for TMR to buy full properties if the application meets the criteria".

SOLD: The Warana Village Shopping Centre has changed hands. Picture: ldemarco

"The applicant applied for Early Acquisition of the entire block and satisfied the criteria. The project's final design may refine the actual land requirements," the spokesman said.

The spokesman said this approach enabled the shopping centre to stay open until CoastConnect progressed.

There was currently no funding allocated for CoastConnect construction and for business owners with long-term leases at the site it remained business as usual.