In a close vote, Indigo Shire Councillors were divided 4:3 in their decision, on May 14.
The Expressions of Interest (EOI) and selection process which included four conflicts of interest alarmed former mayor Bernard Gaffney who described the matter as “very, very serious”.
“There’s a lot of confidential documents that can’t be brought out to the community to see, which is unfortunate,” he said.
“To get four declarations of conflict of interest over one contract is something I’ve never seen before.”
The 31-site Rutherglen Caravan Park lease is due to expire on June 30, 2024. “An Expression of Interest (EOI) process to identify a new lessee has been conducted by council officers as per Department of Energy Environment and Climate Action (DEECA) guidelines,” Adam Kimball – council’s manager assets & property infrastructure services Adam Kimball stated in his report to council, which recommended HPMA.
“The EOI process sought to identify experienced and suitable operators with a vision for improving the park and investing capital funds to develop it in line with the adopted master plan.”
The EOI process to identify a new lessee for the park was publicly advertised in November 2023, for a period of six weeks with closing date of December 21, 2023.
HPM Australia was involved in the preparing the master plan by consultants ODIN360 and declared a conflict of interest accordingly. Indigo council’s building and property officer declared a conflict of interest due to ties with the selected company, ODIN360 and its lead consultant also declared conflicts of interest.
Cr Roberta Horne sought to have the agenda item deferred until council’s June meeting. Cr Gaffney seconded the motion. Cr Emmerick Teissel supported it. But the motion was defeated four votes to three, with Mayor Sophie Price, Cr Diane Shepheard, Cr Sue Gold and Cr Peter Croucher voting against.
Mayor Price defended council’s process and selection of HPM. “The advice from Maddocks (council’s law firm) recognised that while HPMA were involved in the development of the master plan and proposed lease, the processes conducted by council in developing the master plan and EOI documentation were appropriate as they accurately reflected council’s intentions with respect to the park and that HPMA were not materially advantaged,” she said.
“Consequently they found no reason to not support council granting the lease to HPMA.”
The annual rental amount payable by HPMA will be based on a percentage of the caravan park’s annual revenue determined by the competitive Ex (EOI) process including a minimum rent guarantee set at 70% of the predicted gross annual income. Cr Horne wondered about the high percentage.
Council will commit to funding its share of capital works to support the implementation of the master plan’s first stage.
The lessee will be required to invest into developing the park in line with council’s adopted master plan.
Cr Diane Shepeard expressed thanks, in council, to the current lessees in giving “great service”.
“They didn’t put in an application and so they will be moving on, but really appreciate the time and work they’ve put into that space and look forward to HPMA’s opportunity to move that caravan park to another level,” she said.
For the last 13 years, Rutherglen Caravan & Tourist Park has been managed by Dennis Exton and partner Lisa who did not apply to continue running the park. It is understood they had become disillusioned with council.
Indigo Shire Council is the appointed land manager for four caravan parks that are situated on crown land in Rutherglen, Yackandandah, Beechworth and Chiltern.
Council adopted master plans for the parks on December 13, 2022 which included a 10-year aspirational plan and identified opportunities and options for the management, infrastructure, investment and economic/tourism benefits for each of the parks.
Holiday Park Management Australia (HPM Australia) was established in 2019 and currently owns and manages two holiday parks (Wilsons Prom Holiday Park and Long Jetty caravan Park, both in Gippsland) along with a luxurious glamping retreat (Koondrook Retreat in northern Victoria).
