The project aimed to develop a business park on previously contaminated land in order to serve a fast-growing residential population with limited access to employment or bulky retail in the locality.
Project cost
$25.5 million
The City of Gosnells borrowed $25.5 million to subdivide the 34ha site for commercial development. The City has sold all of the land and expects to make a profit of well over $10 million on the development.
Project timeframe
The project took approximately two years to complete (beginning with the advertising of a tender for a civil engineering contractor to undertake the subdivisional works). Part of this extended time period was due to delays associated with the relocation of Western Power infrastructure.
What was the problem or opportunity being addressed?
The City had a large parcel of land located at the end of the residential development front. It provided great potential for a commercial subdivision to service the surrounding community. Initial real estate advice indicated that the land would probably need to be sold in four separate land releases. However, demand was such that the City was able to sell all of the land within the initial land release. Construction of the business park will allow a number of new job opportunities to be created, along with a range of commercial operations to service the local community.
How the project addressed the problem or opportunity
The City had delivered a number of residential subdivisions but had never undertaken a commercial subdivision. The City brought all of the land area to market in one release when it identified very strong demand for commercial lots. The City was also flexible in the subdivision design to facilitate the demands of potential purchasers.
Project outcomes
All lots were sold in the initial land release and no sale has ‘fallen over’ since subdivision commenced. With subdivision just about complete, the initial commercial developments will be constructed on site in the very near future, providing both jobs and commercial service opportunities for the local residents.
Lessons learnt
Perseverance. If the City had not committed to rehabilitating the formerly contaminated site, the subdivision would never have occurred. The rehabilitation took around a decade to achieve and required a significant investment from the City. However, the payback for the City was always going to be significant; not only in terms of the revenue generated but through the job creation and servicing opportunities that the subdivision offers.
