Cllr’s concern over property sale
December 2017 | Sharon Webb
A MOLE Creek property valued in 2012 at $320,000 was sold by Meander Valley Council for $120,000 with a reserve price of around $20,000.
Cllr Rodney Synfield has signaled he will take further action on the issue.
The Mayor of Meander Valley, Cllr Craig Perkins, said the auction reserve price was calculated to cover the Beerepoot family’s debt to the council of $3,500 in rates and costs associated with the auction, which he estimated at $10,000-$15,000.
The remaining $100,000 will be returned to the Beerepoots.
The property, comprising 2.4 hectares of land and a 250 square metre house with open verandah and garage, was sold on 1st September to Mr Geoffrey Oscar Styles for $120,000. Bidding started at $20,000 and Mr Styles’ bid was the only one, by telephone.
Four Meander Valley councillors are critical of the process of selling the house according to the Local Government Act, although five councillors support it.
Cllr Rodney Synfield said council should have taken the matter to court and plans future action, although he would not detail that action.
“We have a duty of care to these people and I’d hate to think this is allowed to be the end of it all,” he said.
“It’s one thing to require the family to pay rates and another for it to cost them so dearly.
“It’s absurd to think that if you went to court for a debt of $3,000 there would be a penalty of $100,000.”
Cllr John Temple said he would also have preferred the matter to go to court. “It was a disproportionate use of power, a sledgehammer to crack an acorn,” he said. “With the benefit of hindsight I believe a far better reserve should have been set, at least at government valuation.
“I believe that when selling a family home, as opposed to a vacant block of land, the Local Government Act should be changed through the reserve price to protect the interests of the owner.
“For the Beerepoots, who I understand now live in rented accommodation, it’s very sad. It takes most of a lifetime to cobble together enough money to buy a house.”
Mayor Perkins said the council tried to get the highest price possible for the property but was hamstrung by the inability for prospective buyers and the real estate agent to view it.
“A lot of people are wondering about the fairness of the price but any purchaser would have been taking a risk because of that,” he said.
Mr Styles, who has changed his electoral roll address to 36 South Mole Creek Rd, said he had no comment to make on his purchase.
Are you satisfied with the council’s processes in selling the Beerepoot family’s property at Mole Creek? Mayor Craig Perkins: Yes. Over several years council followed the legislation and gave the Beerepoots every opportunity to pay rates according to the law. They couldn’t have done more. Cllr Andrew Connor: Yes. We took all the steps required by the Local Government Act. Cllr Michael Kelly: No. There are some serious issues around it. Given the poor outcome it would be good to look at the processes we had to follow. Cllr Tanya King: Yes. Council followed due process. The outcome was undesirable but council’s process was transparent. Cllr Ian Mackenzie: No. I would have liked to see it go through the court process. To me selling was a last resort – even though the outcome may have been the same. Cllr Bob Richardson: Yes. Everything was done to the dot. They had lots of time to pay. Cllr Rodney Synfield: No. I believe we have a duty of care to those people. It’s one thing to require them to pay rates and it’s another for it to cost them so dearly. It should have gone to court. Cllr John Temple: No. They were not paying rates on religious grounds and we are a caring community. It was a disproportionate use of power and I would have liked it to go to court. Cllr Deb White: Yes. It was the Beerepoot’s decision. Council was not able to say, “Don’t pay your rates” because everyone else has to pay them.
