Page 3755 - Week 13 - Tuesday, 15 October 1991

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condensation. This prototype upgrading was evaluated in a further study of prototype upgrading in 1988.

Eleven of the studies undertaken (the list may not be exhaustive) and a summary of their findings, are at Attachment 1.

(7) See Attachment.

(8) The Melba Flats Study, the Butler Report and the Melba Flats Redevelopment Final Report for the ACT Housing Trust all investigated the option of sale, and compared it with other options. The conclusion was that either partial or total sale of the site would give a lower return to the Trust than the redevelopment option accepted by the then Government.

(9) On 24 April 1990, nine months after the Governments decision to demolish the

Flats, Mr WSJ. Gordon of WSJ. Gordon and Associates Pty Ltd issued a letter to the

ACT Housing Trust and this letter stated: "I am reasonably confident that I could

interest developers in a feasibility study and in negotiations to purchase and

redevelop, provided of course, that the Government is receptive and positive.

" Mr Gordons representations were fully investigated. The Trust made the

commercial decision not to sell to Mr Gordon.

(10) Refer to Question 9.

(11) The words "estimated income", in Questions 11 and 12, were not used in the studies on Melba. The figure for "net return", given in answers to these questions, is based on land sales revenue (estimated) minus the sum of actual (for Question 11) and estimated (for Question 2) demolition and land development. It excludes other costs and returns such as administration, replacement housing, tenant relocation, rent increase from replacement housing, reduced vacancy rate, etc.

Estimated net return in September 1991 is $5.206M for sale of redeveloped land.

(12) Estimated net return at July 1989 was $3.95M.

(13) The last three studies referred to in Question 8 all provided several estimates of revenue yield that would flow from each of the alternative strategies adopted for the site.

(14) Mr Bill Gordon of WSJ. Gordon and Associates in a meeting with the then Acting Commissioner for Housing, Mr Tony Waters, early in 1990 made an offer of $4.OM to purchase the flats. When questioned Mr Gordon would not divulge the proposed developers name or the funding source.

(15) Yes. The recommendation is at Attachment 2.

(16) No.

The consultant stated "the sale of the site en globe to a developer in todays real estate climate could yield returns to the ACTH between $1.7M and $2.7M.

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