Quinns Rocks Redevelopment

The former caravan park site has long been identified by the City as having potential for tourism accommodation. The status has been consistent in Council’s decisions in the time since deciding to close the former caravan park site in 2012, including:

• Council resolutions in relation to the site, such as to:
  • establish a Council Member Working Group (2015);
  • endorse a business case and authorise an expression of interest (EOI) (2020);
  • approve a preferred EOI candidate (now the Proponent) (2022); and
  • authorise lease negotiations (August 2023); and
• broader strategic decisions by the City in relation to economic and tourism planning, including:
  • identifying the former caravan park site in the City’s Economic Development Strategy & Action Plan 2016-2021; and
  • identifying the site in the City’s Tourism Plan 2019-2024.

The proponent is responsible for the development of the site at its own cost, including the design, securing approvals and construction (including buildings and other improvements, landscaping and connecting utility services).

The City is not contributing to the cost of the proposed development. The Proponent’s estimated cost for the development is $8 million.

The City has no financial interest in the tenant or development other than as landlord (receiving the proposed rental income of $50,000 per annum).

The City is not an investor in the development, with all costs (and development risk) borne by the proponent. There is no evidence to suggest that any Council Members have a financial interest in the proposed development.

The project has been ongoing for more than 10 years since Council resolved in 2012 to close and decommission the former caravan park.

An earlier Questions and Answers document is available on the City’s website (here). This document was prepared during the community engagement process (between December 2022 and March 2023) and updated in real-time as new questions were raised.

The document was last updated in advance of the Special Council Meeting on 1 August 2023. It provides more detail on aspects such as:

1. the Expression of Interest process and selection of a preferred candidate;
2. the recent community engagement process; and
3. the broader context of the site, including the environmental and heritage condition.

A higher level of detail on the project background is available in previous reports to Council, including the report to the Special Council Meeting on 1 August 2023.

A ‘ground’ lease is where a tenant leases vacant land and is responsible for constructing its own premises. The tenant then owns the structure, but the landlord retains ownership of the land (and receives the structure at end of lease).

The alternative to a ground lease is a ‘building’ lease, where the landlord provides / builds the structure (at its cost) and is occupied by the tenant.

Ground leases are typically long-term leases, lasting 20-50 years, to enable the tenant to get the return on its investment.

The original EOI proposal was submitted by Heritage W.A. Investments Pty Ltd and its director, Russell Percival.

The proposed leasing entity was subsequently confirmed as Eco Tourism Pty Ltd (ACN 669 182 709) as trustee for the Dunes Unit Trust (formerly known as the Quinns Resort Unit Trust).

The Proponent had delayed incurring the cost of establishing the company structure due to uncertainty regarding’s Council’s position on the proposed development until the Special Council Meeting on 1 August 2023. It is common in property and commercial development and leasing to establish an operating company once the Please note, this is a working document and will be updated throughout the project. 8 proposed venture is likely to proceed, and the Proponent had delayed until Council’s commitment was more definite. However, in advance of that Special Council Meeting, the Proponent took into consideration interest from Council Members and the community in seeking a tangible entity, which prompted the creation of the current structure.