The Woy Woy Commuter Carpark is changing owners.
Central Coast Council will sell it to the NSW Department of Transport for $1.
But Administrator Rik Hart says it’s a good deal because it eliminates costs for Council.
The current market value of the carpark, being the building itself and the Council-owned land on which it sits, is determined to be zero because of a long-term lease to the State department.
“Although there is an underlying value in the land on which the carpark sits, and there is some current retained value in the asset, this is offset by the combined impact of depreciation of the asset over the next 40 years (the expected remaining life of the asset), the ongoing costs of asset renewal activities over the lease period, and decommissioning costs at the end of the assets life,” a Council report says.
“In summary, potential costs associated with the asset over the next 40 years including anticipated end of life make good/demolition costs are expected to exceed the future value of the land.
“Accordingly, transfer at a consideration of $1 is considered to be fair value.”
For several years negotiations have been ongoing between Council and Transport for NSW over the future ownership of the carpark.
Construction of the commuter carpark was largely funded with assistance from successive federal and state governments, and it is leased to Transport for NSW for the next 41 years (until 2065).
Council says transfer of the ownership to Transport for NSW will achieve better alignment with the long-term interests of the agency which benefits most from its existence.
The carpark primarily serves rail commuters transferring to and from Woy Woy railway station.
In late 2022, Council was approached by the incoming owner of the Deepwater Plaza shopping centre about the ownership.
The shopping centre owns and operates the shopper carpark on the site immediately to the west of the commuter carpark.
The proposal put forward by the incoming shopping centre owners included an offer to buy the commuter carpark and the land on which it stands.
Council considered the offer but, after a public outcry, decided that it would be preferable to continue negotiations over transfer of ownership with Transport for NSW.
The original report tabled at the February 2023 meeting said Council owned the multi-storey commuter carpark located at 93 Blackwall Rd, Woy Woy.
It accommodates about 700 cars and, up until this decision, it has been leased to Transport for NSW until 2065 at a peppercorn rental of $1 a year.
The sale will include an appropriate property interest over the pedestrian walkway linking the carpark and train station, including existing easements for right of pedestrian access through Clocktower Centre.
The walkway is currently leased to the department, but a more permanent interest will be needed so that the responsibility for maintenance and repair work of the walkway and overbridge will lie with Transport for NSW, the report said.
Merilyn Vale