Agreement reached with Cape Hotels re sale of Yallingup land

14/5/97

An agreement has been reached between the State Government and Cape Hotels regarding the sale of land adjoining Caves House in Yallingup.

"I am very please to announce this settlement which will see the State receive just over $1 million for the sale," Lands Minister Doug Shave said.

This is the full market value as assessed by the Valuer General.

"The $1,040,000 paid is full current market value and almost double the original 1994 purchase price of $550,000.

"This settlement, which comes as a result of court ordered mediation, is a positive outcome for all involved.

"In addition to achieving full market value for the land, other key aspects of the settlement take into account the wishes of the local people who were keen to see the caravan park and gardens retained."

Mr Shave said development pressure on the gardens had been eased by the purchase of an extra 4.5 ha of land adjoining the hotel site as per negotiations in 1994. Cape Hotels intended to develop the area subject to the usual local and State Government approvals.

He said Cape Hotels had indicated they would seek Busselton Shire approval and local community support for a development on the site that would be in keeping with the heritage and environmental values of the area.

Mr Shave welcomed the commitment given to the Government during the negotiations that Cape Hotel would retain public access to the historic gardens.

"Another positive is the replacement of the current caravan park lease, which has nine years to run, with a 21-year lease," he said.

"Cape Hotels have said that the security of lease will encourage them to spend substantial funds in upgrading the caravan park."

Currently, the rental of the caravan park and three adjoining blocks of land is $26,000 per annum. Under the settlement the rent for the caravan park alone will start at $45,000 with three yearly reviews.

Mr Shave said the general upgrading of the caravan park combined with the increased accommodation would ensure Yallingup benefited from the increased tourism numbers being experienced in WA.

He said the benefits to the local community, the State and Cape Hotels of the settlement would see more people coming to the area spending money and creating employment.

"Despite the State Government paying $150,000 in costs, the agreement has saved the taxpayer the enormous cost of going to court and the risk of losing," the Minister said.

The Government's own legal costs are about $125,000.

"Crown law and Queens Counsel have advised the Government that the settlement is in the best interests of the State," Mr Shave said.

He said that throughout the negotiations Cape Hotels and its representatives conducted themselves with professionalism and good faith.

The Minister also congratulated the Busselton Council for its assistance in making the Government aware of the local community's views in regard to the area.

He said he was sure all interest groups would welcome the settlement and the benefits it brought.

Media contact: Anabel Gomez 93660300.