Revealed: The botched deal on the city’s biggest land site which will cost ratepayers millions

RATEPAYERS are facing a payout of at least $25 million after council and the State Government “botched” a deal on securing the city’s most important remaining koala land.

RATEPAYERS are facing a bill of at least $25m because the council and state government “botched” a deal to secure the city’s most important remaining koala land.

Worse still, the breakdown in talks between both levels of government has led to legal action and is slowing a start on the Coomera Connector.

Developers now doubt the council can afford the land.

The 407ha Greenridge site, bought by the Kornhauser family in the 1980s, covers a suburb-size parcel of bushland on the Pimpama River. At one stage it was tipped to be the next Sanctuary Cove.

The area marked shows how large the Greenridge site is at Pimpama, in the northern Gold Coast.

A Bulletin special investigation on closed-door negotiations has discovered the council was left to negotiate with Melbourne-based BCI Group after the state government walked away from the deal.

Sources suggest the council then offered at little as $8m for the land. Property analysts suggest it is worth up to $32m.

Mr Kornhauser described the talks with the council as “flawed” and gave him no choice but to launch judicial review proceedings in the Supreme Court last December.

“For almost 20 years we have tried to collaborate with council in terms of achieving our mutual objectives for the land,” he said. “They rejected our submissions and proposals and then started the process to acquire the land compulsorily. Their initial offer was a pathetic joke.”

A map showing the land which is part of the 407ha Greenridge site at Pimpama on the northern Gold Coast.

Mr Kornhauser will not comment on the details of the talks but said he was “open to negotiation”.

“But the price must reflect the value of land, including it being used as an offset – an environmental requirement when the state builds the Coomera Connector.

“The council knows very well how valuable this land is. They just don’t want to pay the price – they probably can’t afford it.”

The BCI Group offered a deal in 2018 in which it would build about 1200 houses on 80ha of the site and donate the rest for koala country.

In approving the Coomera Connector, the federal government requires the state to locate about 250ha of prime environmental land as an “offset” to building a six-lane highway from Nerang to Coomera.

The Greenridge site at Pimpama in the northern Gold Coast.

Opposition environment spokesman and Bonney MP Sam O’Connor wants the government to intervene to create a “national park” between Brisbane and the northern Coast.

Several independent experts had advised the government that Greenridge was the best choice for their environmental offsets for the second M1, he said.

“I have been told offers were made but later withdrawn after the involvement of George Street,” Mr O’Connor said.

“It is extraordinary that a Minister (Mark Bailey) would intervene to block the purchase of the northern Gold Coast’s most significant environmental opportunity.

Bonney MP Sam O'Connor at state parliament — asking questions about “botched deal”.

“Especially because they were willing to pay over $70m for land in Helensvale, a fraction of this size with minimal environmental value to cover up their own corridor-planning failures. By comparison, this is an absolute bargain.”

Mr Bailey responded: “I have not at any stage blocked the acquisition of any land relating to the Coomera Connector and the LNP should stop lying and misleading Gold Coast residents when they have no evidence whatsoever to back up their latest political spin.

“I’m advised by my department that there are a number of options they are exploring as potential offset sites.

“I will consider any future advice from experts in their field, not the latest media release from an LNP career politician on the make.

“If Mr O’Connor had any actual commitment to the second M1, he’d phone his federal LNP Morrison government colleagues to help expedite these necessary federal approvals instead of sledging the state Labor government that has been instrumental in getting this project so advanced so quickly.”

Sources say the first offer for the land from the state was $18.5m. A further “paper offer” reached $20m. Finally, a $25m deal was discussed.

In September 2021 senior Transport bureaucrats said a “mutually acceptable price” could not be agreed on. They notified council to say the state would not be buying the land.

But they admitted the land presented a “significant opportunity” for environmental offsets.

Roads surrounding the Greenridge site at Pimpama, in the north of the Gold Coast.

A Transport and Main Roads (TMR) spokesperson said officers had been working with key stakeholders on Stage 1 and assessing the potential impacts to koala populations between Coomera and Nerang.

“We have actively engaged with the Greenridge’s owner over an extended period but could not reach an agreement on the land’s market value. TMR will meet its federal land-based offset requirements,” the spokesperson said.

Mr O’Connor confirmed that after the state’s interest waned, council suggested to the developer that the land was worth between $8-9m.

“I have confirmed in writing that the state government were prepared to offer $20m for the site so that makes the council’s figure far too low,” he said.

A property source said compulsory acquisition was a “disgraceful waste of ratepayer funds”.

Mr Kornhauser expects a court judgment will be made in the next few weeks.

“If we are successful, the council will need to completely restart their process to acquire the site compulsorily. We will do everything we can to prevent that outcome,” he said.

Council could not expect to acquire the land by at least mid-year.

Part of the bushland, renowned for koalas, on the Greenridge site at Pimpama in the north of the Gold Coast.

“Once they acquire the site compulsorily, they must compensate us. If we are unhappy with the offer, that’s when it goes to the Land Court for an independent and final judgment about the value of the land,” Mr Kornhauser said,

A council spokesperson said: “It would be inappropriate to comment on this matter as it is the subject of legal proceedings.”

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