Statement of Receipts and Payments of the Consolidated Fund and ...

(e) Bayside
On 26 July 1990, the Government entered into an agreement, supplemental to the
Development Agreement and the Contract of Sale, with Sandridge City Development Company
Pty Ltd (SCDC). The supplemental agreement included a clause requiring the State to pay the
developer costs and expenses incurred by the project prior to 30 June 1990 and interest on that
amount from that date.
The Development Agreement lapsed on 6 April 1992 and on 28 May 1992 SCDC lodged a
writ claiming $7.5 million plus damages and costs.
In the meantime, work is continuing on the project to realise the value of the property,
estimated at between $18 — $25 million.
The consolidation of the site for the Bayside project required the relocation of a number of
businesses. From 15 July 1988 Red Top Distributors Ry Ltd lodged a series of claims totalling
$2.2 million for compensation and relocation expenses associated with the move from the
Bayside site. During 1991-92, a payment of $258 700 was made against that amount.
The Government contracted with Roche Bros Pty Ltd for works associated with the cleanup
of the Bayside site, the works were completed and the site was certified clean by the
Environment Protection Agency in June 1992. In late 1991, Roche lodged contractual claims of
about $7 million in excess of the revised contract figure. To date, negotiafions have reduced the
excess over the contractual claim to approximately $4.5 million.
(f) Eastside
The Government sold the Eastside site to Becton City Holdings Pty Ltd on 31 January
1992. The Contract of Sale provided for further agreements and deeds including options on
additional land to the south and east of the site. On 24 July 1992 the Development Agreement
and Option Deeds were executed. To release the land identified in the Deeds the Government
will need to carry out works at an estimated cost of $6.8 million to relocate existing railway
facilities.
(g) Private Bus Operators
Previous arrangements with respect to private bus operators continued in 1991-92. Under
these arrangements, the financing agency required written confirmation that the Department of
the Treasury was aware of the provision of an overdraft facility to the Bus Proprietors'
Association, and that the Budget provides funds to support the Government's ongoing
commitment to fund the Private Bus Route Operations through the Public Transport Corporation.
The Public Transport Corporation is not party to the overdraft facility, but is required to pay the
payments to private bus operators to reduce the overdraft facility.
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