Friday, July 1, 2022

Service station deal sealed

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Sheryl Lowe, Naracoorte Community News

Millicent will benefit from an estimated nine million dollar investment by the K & S Corporation following their purchase of the previously Council owned Adelaide Road Service Station, according to information received by The News.

The investment will provide a refurbished site on Adelaide Road and a new facility on Billy Goat Corner.

Recently released minutes of Wattle Range Council confidential meetings on the transaction, show the site was not sold to the highest bidder; a matter which has raised questions in the community.

On The Run (OTR) and Perry’s Fuels were overlooked in favour of the K & S Corporation.

The valuation figure of approximately $1.3m was recommended in the staff report as the preferred sale price with further recommendations to accept the OTR offer.

This was rejected by elected members, opting for a sale price of $1.1m. The $200,000 difference has been questioned by some ratepayers.

The site has been idle since the closure of the Caltex service station last year; underground tanks have been removed and repatriation of the site has been carried out in recent months.

The closure meant Millicent has had only one staffed service station and one self service station since the middle of last year.

The site on Adelaide Road will be a staffed fuel outlet opening later this year, and will be the only staffed service station in the town while the current station on the corners of Mt Gambier and Williams Road is demolished and a new modern facility built in its place, according to information obtained by The News.

Some Millicent residents say the sale has possibly given one Corporation a monopoly on fuel prices, but others told The News they believe a sale to OTR would have had a negative impact on some small businesses in Millicent due to the diversity of their services and products.

Council minutes show on July 27 th 2021, Cr Peter Dunnicliffe “moved that Council authorise the CEO (Ben Gower) to enter into a contract with K &  S Corporation for the sale of 13 Adelaide Road, Millicent (known as Adelaide Road Service Station) for the tendered price of $1,100,000.”

The motion was seconded by Cr Dennis Muhovics and carried.

Naracoorte Community News 15 June 2022

This article appeared in the Naracoorte Community News.

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