Council’s property company comes under fire

AN investment body, established to develop property for Logan City Council, has come under fire.

The council-owned site at 4150 Pacific Highway, Loganholme, has been vacant for eight years.

THE structure of an investment body, established to develop property for Logan City Council, has come under fire. The Logan Ratepayers’ Association has put council on notice over its independent property development company called Invest Logan.

The company, set up in July 2017 to buy and sell property for council, was born after Ipswich City Council set up Ipswich City Enterprises Investments in 2000.

Ratepayers’ association president Rod Shaw said the company was wasting ratepayer money renting premises in Springwood and had not undertaken any property development in 13 months.

“A very large amount of money has been loaned to the company with little, or no, return on that investment,” he said.

Council said it had “no oversight of the controlled entities of other councils” and Invest Logan Pty Ltd was a wholly-owned subsidiary of Logan City Council with an independent board of directors with an approved a set of rigorous governance procedures.

Acting chief executive Silvio Trinca.

Logan acting chief executive Silvio Trinca in correspondence to Logan Ratepayers’ Association said council paid $4.8million to the company. “As disclosed in the 2017/2018 financial statements, on 3 July 2017 and 21 July 2017 Council provided total investment capital of $4.8 million to investLogan in exchange for 4.8 million ordinary shares at $1 each.”

Division 10 councillor Darren Power said he was concerned parkland would be sold off.

“They’ve already approached me and tried to take future parkland to sell and we already got rid of most of the ‘surplus’ land under a previous mayor,” he said.

“I’m concerned this will end up like Ipswich and council will lose control,” Cr Power said.

Council’s Planning and Development chair Cr Russell Lutton said the body was different to Ipswich and had independent directors and no council representatives.

“Council has given Invest Logan no land yet,” Cr Lutton said. “No parkland will be sold. In fact, the opposite could happen.”

Mr Shaw also questioned why Invest Logan had done nothing about renting out a vacant block of council land at 4150 Pacific Highway, once earmarked for a zoo but now subject to a court battle.

Last week, Alma Park Zoo owner John Quinn said he was still battling the council in the Supreme Court to try to get an agreement to build his zoo on the site reinstated.

“Our agreement was terminated by council because we didn’t build the zoo within a certain time frame,” Mr Quinn said.

“This was after council prevented us from entering the land to commence the bulk earthworks works for nine months after we had the development application approved in January 2014.

“They still had sewerage construction workers on the site working on a job that should have been completed the previous year.

“As soon as we were granted approval, in September 2014, to access the site they gave us an irremediable breach notice which, in effect, prevented us again from commencing any works.

“What many ratepayers probably wouldn’t realise is that they are funding the council’s enormous legal fees to prevent us building the zoo.”

Council said the transfer of Logan City Council-owned property to Invest Logan would require the approval of the full council.

Land owned and controlled by Invest Logan Pty Ltd is managed by the management and independent board of the company.

Council can lend Invest Logan up to a maximum of $25.5 million.

“Invest Logan Pty ltd has been a controlled entity of Logan City Council for a number of years,” council said. “However, the company was previously dormant and not trading.

Invest Logan Pty Ltd has been active since July 1, 2017.”