Supreme Court Decision Supports Wave Park Lease

17 July 2018

The City has welcomed a decision by the Supreme Court upholding the validity of a lease agreement between the City and URBNSURF Perth for a proposed Wave Park.

Chief Executive Officer Dr Shayne Silcox said today’s Supreme Court decision and a recent EPA decision, which determined there to be no significant environmental concerns, meant that the Project could continue on course.

“The City of Melville has at all times acted in the best interests of residents and ratepayers and worked to meet obligations under the Local Government Act 1995,” Dr Silcox said.

“The Wave Park will offer many significant social and economic benefits, and will importantly provide a financial opportunity to help keep rate increases as low as possible into the future for Melville ratepayers.”

Dr Silcox said while no major problems or risk to the City of Melville were determined through the judicial review, a minor technical breach relating to a name change of the proponent during the advertising process was found, though determined to be inconsequential as it did not affect the validity of the Council to enter the lease.

“We are committed to achieving the best outcomes for our 106,000+ residents and ratepayers. Council was diligent about ensuring that conditional lease measures were put in place to ensure all the appropriate assessments of risks and impacts would be conducted. The lease agreement is transparent and represents no cost or financial risk to the City of Melville and has been available on the City of Melville website for many months,” Dr Silcox said.

“Technical and other complaints from a vocal minority appear to be designed to frustrate the Wave Park evaluation and development process and act to impose significant costs on the City – including those of repeated special elector meetings.

“In determining that in this instance the resident group must pay the other parties costs on a non-reduced basis, the Supreme Court concluded that the applicant did not succeed on a relevant issue that had a bearing on the validity of the lease and questioned the applicant’s interest in the matter.

“The good work of the Council and City staff has placed the City of Melville in an enviable position, achieving in 2018 the lowest rate increase for ratepayers in the past 20 years at a record 0.9%.

“We are determined to continue working for the benefit of all residents and ratepayers in progressing innovative and inclusive plans for Melville’s long term financially sustainability and we appreciate that these changes, which in the longer term will be beneficial for our community, are hard for some community members to accept, change always is.”

Project Background

In April 2017 the City of Melville entered into a ground lease agreement for the development of a Wave Park surf, recreation and leisure facility in Alfred Cove.

As a condition of the lease, measures were put in place to ensure all the appropriate assessments of risks and impacts are conducted.

A unique and transformative first of its kind development for the Melville community and for the State, the proposed facility will offer the wider Perth community a brand new sport and tourism facility offering many community benefits.

During the construction stage of the project estimates are that:

  • Of the $28.0 million total construction cost for this facility, approximately 20% will be directly returned to the local economy, with
  • 51 FTE jobs and $5.2 million will be generated in incomes and salaries 
  • Once operational, the project will also have the potential to deliver: 
  • $25.3 million worth of additional output (including $10.3 million in direct impacts).
  • $11.9 million contribution to GRP (including $4.0 million through direct impacts).
  • $7.6 million in incomes and salaries paid to households (including $2.7 million in direct incomes).
  • Employment totalling 122 FTE jobs (including 53 direct jobs).
  • Increased employment of unskilled and older/youth labour;
  • Increased tourism visitation to other areas within the City of Melville;
  • Increased local participation in sport and sport development opportunities;
  • Improved place activation and more diverse local use of the space;
  • Improved community involvement.

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