The City of Karratha has been successful in its bid for The Quarter with the investment set to become an additional sustainable income stream for Council.
The marquee retail and commercial precinct has the potential of generating substantially greater financial returns compared to the City’s primary investment regime of bank term deposits which currently average 2.6 per cent.
City of Karratha Mayor Peter Long said the investment would reduce Council’s reliance on generating income from rates with anything greater than what it currently earns in term deposits, plus one per cent, directed to a specific Rate Management Fund to be used for the following year’s rating purposes.
“While the City is in a strong financial position Council is always seeking to generate the best rate of return on its investments so that we can improve facilities and services without costing the ratepayer more,” Cr Long said.
“Even at the current occupancy The Quarter generates 70% more than Council currently earns from term deposits. This additional income could be used to minimise rate increases in the following financial year providing a long term and sustainable income stream for Council.”
Demand for commercial and retails space at The Quarter continues to be strong with three new leases since the City made its decision to proceed with the investment proposal earlier this month.