THE Lutheran Church has been given a three-year peppercorn licence-to-occupy a 656 sq m block of Redland City Council land at John Street, Cleveland.
It means the St James Lutheran Community Kindergarten and Child Care centre, a church subsidiary, will be able to keep its playground for at least three years but will not have a purchase option.
The block was given to council for parkland 25 years ago and the church has used the area for the past two decades.
In something of a Catch 22, the block was deemed surplus by council because it had not become parkland due to it being used by the church.
In a report council officers said that council policy was to ensure community use of council-owned land for the wider community.
The operation of a commercial child care facility did not strictly meet this policy.
Church officers met with council and put up three options. They asked for council to give them the land and this was rejected.
They also asked for a 20-year peppercorn lease but this was rejected because the land was being used as a commercial operation.
The third option was a purchase agreement to buy the land at $500 a month over 20 years.
Council officers said this equated to a total payment of $120,000 for a block valued at $400,000 to $500,000.
“The church has clearly indicated these are the only terms they will agree to,’’ the report said. “For an asset estimated to be worth $1 million plus in 20 years’ time, this is not an option that can be supported on sound contracting principles.’’
Another option was put forward by Raftyard, an adjoining property owner, to buy about half the block to use it to build an aged care facility, leaving the rest with the church.
The church objected to this, arguing that it would leave insufficient space for children and access to toilets.
Brian Osland for the church told council that, rather than being a commercial operation, the childcare centre was not for profit.
He said if the land was lost it would mean 12 fewer places for children.
Mr Osland said the church had tried for decades to get permanent tenure over the land to ensure the centre’s long term viability.
Cr Julie Talty said she did not want to sound as if she was against the church but it had an opportunity to buy the land and did not take up the option.
Council’s broader policies and goals had to be considered and it was better to offer the three-year licence which would give everyone breathing space to determine an outcome at some point in the future.
The dispute over the block’s ownership started after it was revealed that the John Street block was one which council hoped to rezone from community purposes to commercial use under the new city plan.
Council then dropped plans to transfer the block to council's investment arm, Redland Investment Corporation.
Mayor Karen Williams was in Hobart for a conference and unable to make telephone contact for the vote.
