PLANS for the public development of up to 36 housing blocks on the long-derelict Millicent rail lands have met two significant hurdles.
A Wattle Range Council report has discovered the level of land and groundwater contamination by railway activities between the 1870s and the 1990s is greater than first thought.
Furthermore, the State Government has stated it will not make the land directly available to council.
Transport Minister Stephan Knoll wrote to the council this month and stated the land in central Millicent would be listed on the open market.
His letter, along with a report by council chief executive Ben Gower, will be tabled when council holds its monthly meeting in Millicent this afternoon.
Council has sought to secure the land for several years as it is almost three decades since a scheduled freight train ran on the broad gauge track.
There were occasional Red Hen tourist rail car trips to Millicent but they ceased around 15 years ago.
A sum of $1.15m was committed in the 2017/18 council budget for the purchase, repatriation and development of the rail lands and $400,000 was carried over into this financial year.
The rail lands comprise an area of a few hectares and there are two parcels owned by separate State Government departments.
According to the council report, Mr Gower said council had conducted preliminary investigations into contamination levels associated with the land based on Department of Transport provided data via specialist private consultants.
Mr Gower said the initial advice suggests costs associated with repatriating the Department of Transport land would be significant and the ongoing risks associated with contaminated ground water would most likely transfer to council with the land.
“The advice also suggests the extent of surface and ground water contamination levels may preclude residential development along the former rail corridor,” Mr Gower said.
“The repatriation costs and risks associated with the Department of Environment land appears to be minimal as it was predominantly used for community sport and recreational purposes.
“The consultant’s advice also recommends that an additional $70,000 be spent on a detailed site investigation that would involve soil and ground water sampling across both sites, as the data provided by the Department of Transport was inconclusive.”
Mr Gower said the minister has advised council the land would now be offered via an open market process in competition with the private sector.
“This decision may defeat the original purpose of Wattle Range Council’s expression of interest, as it will enable developers to individually procure the prime Department of Environment land while avoiding the contaminated the Department of Transport land.
“Given this latest advice, it is recommended that council review any further financial commitment to the next phase of this project involving the proposed site inspections.”
In this month’s letter to council, Mr Knoll said the State Government had considered council’s request.
He said his department had given due diligence to its merits.
However, he said the State Government had decided to go to the open market.
“The department will seek to appoint a sales agent to progress the site to the market as soon as possible where Wattle Range Council will have the opportunity to bid to secure the land,” Mr Knoll said.
Last year, Mr Knoll told council he would give consideration to waiving that requirement for the rail lands to go on to the open market.
