The ‘unsolicited proposals’ to develop some land at the aerodrome have motivated council to conduct a strategic review of the facility and formulate a master plan to allow for a more informed position for future development.
If accepted, the proposals could impact the site's flexibility for future development opportunities. Council stated at its May meeting agenda that it “needs to consider these opportunities and what impacts they may have on the current freehold property owners, businesses, and neighbouring residents”.
The opportunity to revisit the potential development options for the land could attract significant investment and have a direct impact on the local economy, increasing jobs and having a flow-on effect on tourism, retail and hospitality.
If council accepts development proposals, the twin benefits to the ratepayers are that a currently non-income generating council asset would deliver rate revenue and an economic boost to the aerodrome by providing lots for hangar or other commercial development.
Yarrawonga Aerodrome Manager Ingo Schweda believes the “well-functioning” and CASA (Civil Aviation Safety Authority) certified airport has untapped potential and welcomes the review.
“We have some land just sitting there that could be developed into something worthwhile like an airpark for example,” he said.
“It’s only a positive; unless you explore all options, you don’t know the outcomes.
“We are a growing town and have the shire’s only airport, the opportunities are endless.”
Mr Schweda said any development could further enhance tourism, with fly-in and fly-out opportunities and charter flight services, etc, on top of the aerodrome being an important facility for emergency services and other businesses such as farmers.
Although the facility is a small regional aerodrome council is keen to assess what the longer-term market is and what level of maintenance or indeed upgrades will occur in the future.
The aerodrome has a total of 60 hectares, of which 5 hectares are looking to be developed. The small regional aerodrome has limited expansion opportunities and costs ratepayers $173,584 per year to run. The costs include having a manager of operations and increase incrementally due to inflation, driven by operational expenses
Council-owned areas take up 10 hectares and comprise a terminal building and toilets, a runway, a taxiway, a plane parking area and other fixed infrastructure above and below ground. The freehold council land is zoned to protect its use for aviation related uses.
A number of aviation-related businesses are located on 10 hectares of freehold land along John Duigan Drive, supporting and enhancing aerodrome operations. A refuelling station is also at the site.
A total of 20 allotments were sold to individuals in 2006 and subsequently developed with integrated hangars and residences.
The available land for development remains untouched and was included in the council's surplus land review conducted in 2022.
In 2018, Moira Shire Council failed to attract serious expressions of interest (EOI) to lease or buy the publicly owned areas of the Yarrawonga Aerodrome.
There was much concern at the time from private freehold hangers and business owners at the aerodrome, fearing a developer would sweep up the land and eventually close the aerodrome and subdivide the area into more profitable residential real estate.
The Moira Shire GM Corporate Simon Rennie, said at the time, the EOI process was an opportunity for someone to buy or lease a regional aerodrome that services the popular tourism and lifestyle destination, with diverse agriculture and export industries and that is already home to aviation businesses and users.
“Over the years we have been presented with a wide range of proposals to improve or develop the aerodrome,” Mr Rennie said.
“Some of the proposals sound brilliant but with so many projects competing for council funding and limited in-house aviation expertise, we believe private ownership or lease could provide a better option to get these ideas off the ground.”
The EOI process also informed council’s consideration of a number of related but separate issues including the future status of the aerodrome under CASA regulations, options for generating revenue to offset its operating costs and the public benefit the aerodrome provides.
A key responsibility of the council is to maintain the access and rights defined in existing agreements with users and hangar owners and ensure continued access to the aerodrome for general aviation and emergency services.
At council’s general meeting in May, administrators Graeme Emonson and Suzanna Sheed moved and seconded the motion, “that council conduct a strategic review and future opportunities study of the Yarrawonga Aerodrome including the development of a Master Plan. And endorse the inclusion of the strategic review and master plan costs of $75,000 across 2023/24 and 2024/25 budget”.
A strategic review, including the two offers to purchase the land, will allow council to make an informed decision considering the community's feedback via the consultation process included in the review.
If council refuse the offers a master plan could determine how council can capitalise on the land in the future to ensure the asset is sustainable and strikes a balance between the public and private benefits provided by the aerodrome.
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