Stokes gets his laneway

The City of Perth has voted to sell a West Perth laneway to a private company belonging to Kerry Stokes, with further development hinted for the site.

In June, the council voted behind closed doors to approve key commercial terms for Comserv (No 1698) Pty Ltd to buy Altona Laneway, covering 177 square metres of land in West Perth, for $675,000 excluding GST.

Tonight, the council voted 4-2 to approve the sale, subject to public access to the laneway being maintained.

"The outcome of a possible development there is much more significant than the dollar value that we will get for the purchase price," Cr Rebecca Gordon said.

Lord mayor Basil Zempilas, who is still an employee of Mr Stokes' Seven West Media, recused himself over the obvious conflict of interest.

The sale was sparked by an uncolicited bid from Comserv (No 1698) to buy the laneway, which splits the headquarters of Mr Stokes' Australian Capital Equity from the building that houses the Stokes-backed BCI Minerals. Companies connected to Mr Stokes own both buildings and another adjacent building.

An Australian Securities and Investments Commission document shows Comserv is 100 per cent owned by ACE.

The city received 19 submissions on the proposed sale during the public notice period last month, the majority of which were opposed and cited concerns over the possible closure of the laneway access and how the council made their decision in a confidential setting.

Despite this, the city officers recommended approval of the sale.

“Whilst the submissions raise concerns, the proposed access easement over the subject site will allow the city’s waste and cleansing vehicles to access rubbish bins in the access easement area and members of the public to enter from or exit Altona Street,” the council agenda said.

“The access easement will also include obligations on the proponent to maintain the subject site."

Cr Sandy Anghie was one of two voters against the sale to Comserv, noting the opposition raised during the public consultation phase.

"The city has never sold a laneway before. It does seem a bit back to front to be selling a laneway before completing the West Perth laneway review and strategy," she said.

"In addition to a lack of strategy, the responses that we had were overwhelmingly in the negative.

"We need a more clear policy on unsolicited bids. If the city does sell this laneway, this then sets a precedent."

The city's commercial services general manager Steve Holden said if the laneway study found the portion of the laneway to be critical, the proponent would still be able to develop over or under the land.

"It will still permit a substantial residential development to occur," he said at the meeting.

"However, if the laneway study comes back and says that portion of the laneway is not critical, they will be able to fully develop that land and develop on the land.

"We’ve thought of every single permutation in this instance. It still allow a substantial residential development to occur."

Conditions for the sale included subdivision approval, cancellation of the existing right of way, and creation of a public access easement on the new title.

The state government acquired the West Perth land under a taking order issued in 2001, and disposed it to City of Perth to be used as a right of way.

Mr Holden said the city was in a unique position with the proposition.

"The portion of the laneway that’s proposed for disposal sits between two adjacent properties owned by the same owner," he said.

"The rest of the laneway that adjoins this portion is not impacted ... the rest of the owners are not impacted."