THE Cootamundra Country Club will continue with the sale of two packages of land within the golf course following an extra ordinary meeting held at the club on last Tuesday night.
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The decision to sell the land for development was almost unanimously accepted by the
members present after the club’s financial position was explained.
The two parcels of land front Poole Street, the first is an area of approximately 1000sqm above the existing cottage opposite the EA Southee School, while the second is a larger area of approximately 3000sm below the existing cottage which has the potential to be divided into five blocks.
The area extends from the
cottage to a point opposite the school side of French Street.
A third area, behind the residence on the corner of Poole and Hurley Streets which is available for sale if required, was not considered.
Chairman of the board Graeme Cheshire opened the meeting detailing the procedures which would be followed before Geoff Twomey representing the club’s accountants and auditors, HMA Twomey Patterson gave a detailed account of the club’s current debt and the need for the sale to be
considered.
“The proposal to sell off the parcels of land is purely and simply to help extinguish debt,” Mr Twomey said.
“It is not for any other purpose.”
“We have a tremendous asset here and the National Australia Bank has been extremely generous and supportive of this club,” he said.
“However the purpose of this proposed sale is to achieve a worthwhile figure to pay off our short term debt. The intention is to save interest expense and assist in better financial management of the club.”
Board member David Steinbeck then explained the club initially looked at the sale of two blocks, the afore mentioned block above the existing cottage (1000sqm) and a smaller sized block below the
cottage, however when an offer was laid on the table the board
determined it ‘not appropriate’.
“We could have taken the easy option and accepted the figure that was put forward to us at that time, but we didn’t as we believed it was not a fair and reasonable price for such an asset,” Mr Steinbeck said.
He explained one of the reasons the offer was below expectations was that any potential developer would be faced with the costs of infrastructure (sewer, gas,
electricity, water) however with the increased package (3000sqm) these costs could be absorbed by across a number of blocks.
“I can guarantee you we (the board) will not be selling off the proposed land for anything less than what we believe it is worth,” he said.
“We also have the option of developing the land ourselves in terms of connecting the utilities and then selling the packages for a premium price.”
A number of members spoke for and against the proposal, with one concern being that, given the
history of the club’s financial
position and the forced sale of other parcels of land in the past, that the club won’t find itself in a similar position down the track.
While the board could not
completely guarantee this would not happen they stressed, that for the pure survival of the club,
immediate action needed to be taken.
The proposal was then put to a vote with more than 90 per cent of voters agreeing to accept it.
