A development to deliver 116 apartments in Karratha has been endorsed by Council.
The development proposal was received in response to the City’s Housing Development Expression of Interest as part of the City’s efforts to deliver housing solutions across undeveloped, development-ready, residential lands.
Located in Bulgarra, the three sites would deliver a mix of one, two, and three-bedroom apartments, aimed at reducing the City’s current critical housing shortage.
The developments will be on City-owned freehold lots, with the City retaining ownership of the land. The proponent will operate the completed development for 20 years, after which control of the assets will revert to the City.
The draft business plan was open for public comment from 9 April to 21 May, during which 55 submissions were received. Feedback highlighted the need for additional housing, while also raising concerns about design and traffic impacts.
Council carefully considered all public input before making its final investment decision, with many of the concerns raised able to be addressed through the Development Approval process and by adhering to established design principles.
To undertake the development, the City will provide a financial contribution in the form of a $56.0 million loan to the proponent. This loan will be funded through the City securing an equivalent amount in external debt financing.
City of Karratha Mayor Daniel Scott said there is a critical need for additional housing in Karratha.
“Housing is the numberone issue in regional Australia, and we have to step up to the plate and do our part,” Cr Scott said.
“Extensive due diligence has been undertaken while we assessed the proposal, including financial modelling reviews and external risk assessments with the project having a projected net benefit of $38.4 million to ratepayers.
“We know what is in front of us, we know what is coming, we know we are 3000 properties short, and the risk of doing nothing is we will have a continued growth in our FIFO market up here.
“We are continuing to work with the State Government to ensure they are doing their part by creating new housing supply and renovating old government houses so as not to compete with the rental market.”