The Northern Midlands Council purchased a block of land in Perth for close to half a million dollars over its value earlier this year.
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The Tasmanian Government's Valuer-General valued the 10 Norfolk Street site at only $165,000 at the time of the sale.
Yet the council purchased the land for $640,909 in March, a total of $475,909 over the government's given value.
Tasmanian company Casanda Securities bought the land in 2010 for $140,000 before selling the 3.211 hectare block this year to the council.
Mayor Mary Knowles said the council did have the property valued before it purchased it but would not release its findings.
"Council purchased the land with the knowledge that a portion would not be developed and would be declared open space, along with a defined area available to subdivide to recover costs," Cr Knowles said.
"Council has referenced the purchase of the land and included photos of the site on council's Facebook."
The April 18, 2018 Facebook post in question mentions the land purchase but did not note the price tag attached.
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A comment on why the council paid almost $500,000 above the land's value was not directly answered.
The proposal to purchase the land was discussed at closed council meetings in September 2017 and December 2018.
The council plans to subdivide a portion of the block for residential development but the rest will be used to implement part of its $6.3 million Sheepwash Creek Open Space Corridor Concept Plan.
The council's 2017 Perth Structure Plan said 10 Norfolk Street was highly underutilised and represented an opportunity for future residential development to capitalise on its river amenity and proximity to the town centre.
Cr Knowles said a flood study of Sheepwash Creek was completed in 2016.
"This determined improvements such as creek widening, and road and rail culvert replacements would be beneficial in reducing flooding during the 1 in 100 year, and 1 in 100 year climate change events," she said.
The land will be used to plant indigenous plants to rehabilitate the creek line, subdivide parts for residential blocks and to manage flooding through integrated water management.
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