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Bikesales Staff21 Dec 2009
NEWS

City of Geelong pulls out of McAdam Park purchase

Concerns over MA's business model

Motorcycling Australia's ownership of the McAdam Park motocross facility in Barrabool (Vic) - handing a reprieve to a facility that was destined to be sold for housing - has already run into some major trouble, according to a report by the Star News Group.

That's after the City of Greater Geelong, which earlier this year voted to give $660,000 to Motorcycling Australia (MA) towards the purchase of the land, scrapped plans to become an official backer, blaming misleading information from Australia's peak motorcycle racing body.

The decision now leaves MA, the Victorian government and the Surf Coast Shire to provide the major funding for the purchase of McAdam Park.

The Geelong council sought title over part of the site as a funding condition, which didn't eventuate according to a report in the Geelong Independent.  And councillors said they also now had doubts over MA's business plan for the track, which projected annual profits of $500,000.

One councillor also expressed concern over the management of the facility, believing it would be run by the Barwon Recreational Motorcycling Council and not MA, and another said "alarm bells started ringing" when two legal firms gave conflicting advice on whether council should hand cash to MA.

Another councillor, Bruce Harwood, said council had made a commitment to ensure Geelong Motocross Club had a place to ride after the Breakwater facility was closed nearly three years ago.

"We might be saving ratepayers a lot of money by not having to develop another (dirtbike) home," he was quoted as saying in the Geelong Independent.

Following the council's decision, local Geelong MP Michael Crutchfield, who has been a key figure in the purchase of McAdam Park, demanded that councillors hand over the money.

"It is extremely disappointing that the City of Greater Geelong has not committed to McAdam Park in relocating the Geelong Motocross Club there," he was quoted as saying.  "It has been disgraceful how the Geelong Motocross Club members have been treated by the City of Greater Geelong and the council must, as a priority, commit at its next meeting the $660,000 to McAdam Park facility so the club has a permanent home."

State Government committed $1.27m to help MA buy McAdam Park.

Geelong Mayor John Mitchell defended council's decision as protecting ratepayers' money.

"The reality to it all was that we guaranteed the money to Geelong Motocross Club to relocate them to McAdam Park, but there were some conditions attached to that," he said.  "One of the conditions for the money was that we get a lease on one of the blocks of land. That was spelt out in plain English at the meeting where we passed it.

"Those conditions haven't been met, so we're reviewing the decision."

At the December MA board meeting, CEO David White said that due to a delay in funding from the City of Greater Geelong, additional money had been obtained through MAIL, MA's own insurance company, to complete the purchase of McAdam Park.

MAIL (MA Insurance Limited) operates from the Isle of Man - which was another point of contention from a City of Greater Geelong councillor, who bemoaned the fact that business was being conducted with another entity partially based on the other side of the world.

MAIL commenced business on January 1, 2003.

Photo of McAdam Park: Click 28

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