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mitted to a sustainable future

Renmark Paringa Council

Sino Australia Unsolicited Bid (including Renmark Airport) - Information Paper

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Contents

Background

Who owns the Renmark Airport? 4

Does Council have the ability to sell the Renmark Airport ? 4

Has Council made the decision to sell the Renmark Airport? 5

How does the unsolicited bid process work ? 5

Frequently Asked Questions

Tell me more about what the initial proposal from Sino Australia? 6

Why did Council considered the matter confidentially? 7

Why has Council made it public now? 7

I want to understand what this means for current users of the Airport 7

How can I remain informed? 7

Attachments Media Release

Renmark Paringa Council Informa on Paper

Background Information correct as at 28 July 2016

On 11 July 2016 Council received an unsolicited bid from Sino Australia Clean Energy Company (Sino Australia) to purchase strategic sites in Renmark including the Renmark Airport.

Who owns the Renmark Airport?

The Renmark Airport commenced operation in 1935. Originally operated as a Commonwealth Aerodrome, it was handed over to Council in 1975.

Does Council have the ability to sell the Renmark Airport?

The provisions of the transfer deed from the Department of Transport and Regional Services (DOTARS) to Council in 1975 required Airport operators to seek consent prior to selling, leasing or otherwise disposing of all or part of their Airport.

In January 2004 the Australian Government waived its right to enforce the relevant clause of the transfer deed that requires aerodromes owners to seek consent from DOTARS.

Pursuant to Section 193 Local Government Act 1999

(1) All local government land (except roads) that is owned by a council or under

a council's care, control and management at the commencement of this section (the commencement date) is taken to have been classified as community land unless—

(a) the council resolves to exclude the land from classification as community land within three years after the commencement date; and

(b) the land is unaffected by provisions of a reservation, dedication, trust or other instrument that would prevent or restrict its alienation.

(2) Before the council resolves to exclude land from classification as community land under subsection (1)(a), it must follow the relevant steps set out in its public consultation policy.

Pursuant to Section 34 Local Government (Implementation) Act 1999, Councils had an ability to exclude certain properties from the provisions of Section 193 Local Government Act 1999.

On 29 June 2000 Council exercised its right to exclude the Renmark Airport from being classified as community land due to the strategic nature of the asset and to pursue commercial proposals for the asset to achieve a return on the significant investment made in the Airport.

5

So has Council made the decision to sell the Renmark Airport?

No. At the July 2016 meeting of Council it considered the initial proposal from Sino Australia. At the meeting Council resolved to acknowledge receipt of the Stage 1 Initial Unsolicited Bid proposal from Sino Australia to purchase the Renmark Airport and a parcel of undeveloped land 1.304Ha in size situated in the Community Zone (near the Renmark High School) for Supported Student Accommodation.

Council further advised Sino Australia that having considered the proposal Council forms a preliminary view that:

the proposal should be considered further and therefore invites Sino Australia to submit a Stage 2 – Detailed Unsolicited Bid proposal for further consideration of Council; and

the parties enter into exclusive arrangements in relation to the proposal for a period of 12 months with the right to extend this for a further mutually agreed time.

The Stage 2 detailed proposal will outline the value for money proposition and detail the due diligence required to ensure the proposal is legally, technically and financially feasible.

So how does the unsolicited bid process work?

The process by which the Council will consider the unsolicited proposal from Sino Australia is a three stage process.

The three stages are:

Stage 1 – Initial Proposal

Stage 2 – Detailed Proposal

Stage 3 – Contract Negotiation.

The objective of the initial proposal stage is to enable a proponent to provide the Council with a high level overview of its proposal which enables the Council to form a preliminary view as to whether:

• the proposal may be considered under these guidelines;

• the proposal should be considered further; and

• the parties should enter into exclusive arrangements in relation to the proposal.

Renmark Paringa Council Informa on Paper

Ok. So tell me more about what the initial proposal from Sino Australia is?

Frequently Asked Questions

Sino Australia’s initial proposition

Purchase the Renmark Airport and extend the main runway to develop an export hub for high-value low volume produce to export to affluent overseas markets.

Establish an International Flying School at the Renmark Airport with Supported Student Accommodation and On-site training facilities.

Establish Supported Student Accommodation on undeveloped land on the corner of Paringa & Seventeenth Street to service agri-business training for overseas students.

Up to 400 students living and studying Aviation and Agriculture in Renmark.

Establish a high-end tourist accommodation eco-resort in the Riverland.

7

I noticed that Council considered the matter confidentially? Why did they do that?

The proponent Sino Australia requested that the matter be considered in confidence. The Local Government Act 1999 allows that to occur.

Why has Council made it public now?

Following Council making its decision it needed to discuss the matter with the Coordinator General as the proposal is contingent on Sino Australia being able to access State Government land.

Council wants to be open and transparent with the community about this proposal.

I can see the benefits of the proposal but I want to understand what this means for current users of the Airport?

As outlined above the unsolicited bid process is a three step process. At this stage Council has made no commitments or decisions to sell any assets including the Renmark Airport. Council has however indicated to Sino Australia that the current arrangements for Airport users with hangers and the Royal Flying Doctors are to remain unchanged, and the Airport is to remain open to other users if Council does proceed to Stage 3 Contract Negotiation.

So how can I remain informed over the next 12 months while Sino Australia undertake developing the Stage 2 Detailed Proposal?

Council will work with Sino Australia and the local media to keep the community informed.

A copy of Council’s Media Release relating to this announcement is attached.

A copy of Council’s Economic Development Strategy can be found on Council’s website under Council Documents/Strategy Documents, or click link below:

Economic Development Strategy

Refer to Council’s website for updates:

www.renmarkparinga.sa.gov.au

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Contact Details Opening Hours Social Media

Telephone 8580 3000 Monday 9am - 5pm RenmarkParingaCouncil

Email council@renmarkparinga.sa.gov.au Tuesday 9am - 5pm RenmarkParinga

Web www.renmarkparinga.sa.gov.au Wednesday 9am - 5pm RenmarkParingaCouncil

Thursday 9am - 5pm

Friday 9am - 5pm

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Press Release

Members of the media are welcome to re-phrase the information contained in

this media release, but the essential information is correct and should not be

altered.

DATE: 28 July 2016 Page 1 of 1

Strategic Sites under consideration

The Renmark Paringa Council has received an unsolicited bid to purchase strategic

sites in Renmark including the Renmark Airport.

Sino Australia Clean Energy Company (Sino Australia) submitted the bid on 11 July

2016 with the matter considered in confidence by Council at their July meeting.

“The Unsolicited Bid process is a three step process. Council has considered the

Stage 1 initial high level proposal and formed the preliminary view that the proposal

should be considered further and invited Sino Australia to submit a detailed proposal

for further consideration of Council.” said Council’s CEO Tony Siviour.

“The Stage 2 detailed proposal will outline how the proposal will benefit the

community and detail the appropriate process which should be followed to ensure

the proposal is legally, technically and financially feasible.” Tony Siviour added.

As part of considering the initial unsolicited bid proposal Council agreed to enter into

an exclusive arrangement with Sino Australia for a period of 12 months with the right

to extend this for a further mutually agreed time to allow appropriate time for

negotiations.

Council has the ability to sell the Renmark Airport as it excluded the asset from the

Community Land classification in 2000 specifically to enable it to consider

commercial proposals such as this.

“Under the unsolicited bid process Council has granted Sino Australia 12 months to

produce a detailed proposal which outlines to Council how the proposal will add

value to the community.”

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“Until the Stage 2 detailed proposal process is completed Council has made no

commitments or decisions to sell any assets including the Renmark Airport,

essentially all Council has agreed is to undertake a process to consider the proposal

in further detail which will involve liaising with Government departments via the

Coordinator General.”

“Council recently completed an Economic Development Strategy which included

increasing the utilisation of the Renmark Airport as one of its strategic objectives.

Investigating proposals such as this is a key part of achieving this objective and in

encouraging a vibrant local economy. Importantly the proposal also addresses one

of the State Government’s Seven Strategic Priorities” said Tony Siviour.

For further information on the proposal visit Councils website

www.renmarkparinga.sa.gov.au

Sino Australia’s initial proposition

Purchase the Renmark Airport and extend the main runway to

develop an export hub for high-value low volume produce to export

to affluent overseas markets.

Establish an International Flying School at the Renmark Airport

with Supported Student Accommodation and On-site training

facilities.

Establish Supported Student Accommodation on undeveloped land

on the corner of Paringa & Seventeenth Street to service agri-

business training for overseas students.

Up to 400 students living and studying Aviation and Agriculture in

Renmark.

Establish a high-end tourist accommodation eco-resort in the

Riverland.

Committed to a sustainable future

Committed to a sustainable future