More doctors, nurses, teachers and police officers will have the opportunity to work in Geraldton following Council's decision to release a tender for the construction of seven new homes.
Here is more details about the Olive Street Housing Project:
Are these houses for social services?
No, these houses are for doctors, nurses, teachers and police officers through the Government Regional Officers Housing (GROH) Program.
Why is local government building houses?
When new business proponents come and talk to the City about their needs, housing is always high on their list. The City had 15 parcels of land around the Olive St Reserve and managed to sell eight of them. Seven remained unsold. With the help of the State Government, the project is financially viable and hence Council has decided to proceed with construction.
Housing stocks are seen as a sound and good long-term investment providing guaranteed annual dividends. With the past 12-month medium price growth in Geraldton being approximately 20% and current indicators suggesting strong growth in the region over the next 10 years, this type of proposed investment is low risk with attractive returns.
The City chose to take on a leadership role in the national housing crisis by developing unused land. We acknowledge the seven homes will not solve the entirely of the problem, but it’s a step towards the region attracting and retaining key services which benefits our entire community.
Who will be maintaining the properties?
GROH will oversee the maintenance of the properties as the City will lease the homes to them.
How many homes are being built?
Seven homes backing onto the Olive St Reserve.
What type of homes will they be?
The homes will be 4x2 designed with family occupants in-mind.
Was the land previously an unauthorised construction rubble dump?
Yes, in 2017 the city undertook remediation works to transform the area into public open space. The lots in question are not on the rubble, but on the periphery.
How will the build contract be awarded?
As per the Local Government (Functions and General) Regulations 1996, all tenders have a regional price preference meaning that the money stays local as much as possible.
How long are the works anticipated to take?
City officers have released the tender for the building opportunity, and it is now with the market to respond to. The City would like to see the homes finalised by 2026 so that the professions and their families can move in.
Is the City paying for the entirety of the project?
We are thankful to have received $1.6 million contribution from the State Government to the project. The would not have proceeded with the project without this support.
Where exactly are the blocks of land?
Please refer to this map, which includes the sites.
Why is local government funding State Government housing?
Australia is in a national housing shortage and it’s expected to worsen. The City saw an opportunity to activate unused land and in turn strengthen our community and economy. We proposed the housing opportunity to the State Government and are thankful to have received $1.6 million in funding. The building opportunity will be released to the market this weekend and then tender responses will go before Council for deliberation.
Why was Olive Street chosen as the location for this project?
Olive Street was chosen because the city owns seven blocks of land in this location. These lots have been sitting inactive since we developed the land and put them on the market in 2017. We sold some and saw an opportunity to make the remainders available to GROH and derive an income for the community.
Are residents' rates being used to fund this project?
No, the funding of this project is from our reserves in combination with the State Government’s $1.6 million funding contribution. If Council decide to proceed with this project, it will create another income stream for the city helping to reduce pressure to raise rates. Our Long-Term Financial Plan is available on our website for all to read.
Who will live in these homes? Are they for key workers or social services?
Allied health workers and emergency responders will live in the homes through the Government Regional Officers Housing (GROH) program.
How will this project help with the housing crisis in Geraldton?
We are working collaboratively with the State Government on this issue. We are continuing to lobby for more homes and are taking a proactive approach in building houses to ensure our region continues to grow. The seven homes have the potential to bring seven families to Greater Geraldton who will in turn be part of the community, spending locally, servicing it and experiencing what we have to offer.
What is the total cost of the project, and is the city paying for all of it?
The building opportunity is being released to the market this weekend. All tender responses will be presented to Council for final decision making. After the tender has closed and Council has selected a company we will have the total costs of the project, which will be made available publicly.
Why are we paying $700K per home?
Council will consider responses from the tender opportunity. The figure of $700K is an initial estimate and includes fencing, landscaping, curtains, finishings, driveway and we hope for a lower figure.
The Council will only proceed with the project if it believes a positive return will result. It should be noted that a growing number of Councils are delivering housing projects as an adequate supply of housing is core to a city’s ability to take best advantage of the current economic uptick.
Who will maintain these properties after they are built?
GROH.
How will the build contract be awarded, and how long will the works take?
The building opportunity is being released soon. When the opportunity closes, responses will be presented to Council and then a decision will be made as per our normal processes. If Council choose to accept the preferred proposal, it will be made public. It is our intention to have the homes completed in 2026.
What impact will this project have on local businesses and the economy?
It will have a significantly positive impact on the local economy. The opportunity to build seven homes is huge and as per the Local Government (Functions and General) Regulations 1996, all tenders have a regional price preference meaning that the money will stay local as much as possible.
Is it safe to build homes on land that may have been used as a rubbish tip?
In 2017 the city undertook remediation works to transform the land into the Olive Street reserves. The works were audited and approved by independent environmental consultants. The lots in question are not on the rubble, but on the periphery.
Will there be transparency regarding how funds are spent?
All information will be made available to the community once the tender closes and if Council decides to progress with the project.
Will there be an annual audit to ensure accountability, especially regarding rental income and lost rates?
Yes, annual reviews will be conducted.
Are the costs of building these homes practical for the long-term benefit of the community?
Housing stocks are seen as good long-term investments with guaranteed annual dividends. The past 12 months medium house price has grown by approximately 20% and current indicators suggest that will keep increasing in the Midwest over the next 10 years. In 13 years’ time, we will assess the market and potentially sell the properties in phases. The Council has made it clear that it will not proceed unless they are convinced a positive return is likely. The need for additional police, nurses, doctors, and teachers in the Midwest should also be considered as they ensure the liveability of Geraldton remains high.
Why aren’t abandoned or boarded-up properties in Geraldton being demolished to make way for new housing?
Without knowing the exact properties it’s hard to respond to that question but it may be a case of it being privately owned. The city does not own abandoned or boarded up houses.
What percentage of GROH applicants need a 4x2 house? Wouldn’t smaller homes or units be more suitable for most applicants (e.g., teachers, police, nurses)?
Geraldton is short all forms of housing at present. GROH expressed the need for 4x2 homes. GROH’s construction specifications are online. Some GROH houses are occupied by families and then others are shared by colleagues. The blocks of land and the area in which they are located also lend themselves to 4x2 homes.
How can the council predict the housing market for selling these homes after 10 years, and is this a risk worth taking with ratepayer funds?
Housing stocks are seen as good long-term investments with guaranteed annual dividends. This type of proposed investment is low risk with attractive returns for the whole community.
Does the City have plans to build homes in areas like Walkaway or Mullewa, where there are also challenges attracting and retaining key workers?
We acknowledge this problem is much larger than Geraldton and is being felt all over our locality, region, state and nation. Presently, we are proposing to activate these seven sites and are continuing to work closely with the State Government to create more housing opportunities all over Greater Geraldton. The City recently constructed a home in Mullewa for its local manager and is in the process of renovating the doctor’s home which is owned by the city.
Would town houses be a better use of the land, as they would require less maintenance, fewer materials, and avoid the ongoing costs of landscaping?
GROH set the specifications for a 4x2 home. The details are on their website if you’re keen to read more or make suggestions to them.
Why does CGG believe that singling out State Government employees to be given mini mansions on the beach to be an appropriate use of ratepayers money given the private sector have, in recent times bought such properties as, Batavia Motor Inne, Cameleers Guesthouse and Tarcoola Tavern to house more than 30 of their workers each at a combined, far lower cost than the 7 houses proposed by CGG?
The fact that businesses are needing to buy hotels and old buildings to accommodate their workers highlights the need for additional housing in the Midwest. The proposed Olive Street model (rent and sell) has been proposed to maximise the financial return to the City. The proposal to provide the housing to the State Government further reduces the project’s potential risks.