By Darrell Giles

January 20, 2007

TWO neighbouring property owners have come out of State Government resumptions $1 million apart – despite having almost the same size block.
The Department of Main Roads bought farmer Gordon Donald’s 50ha property for $700,000 in June.

Six weeks later, the Department of Natural Resources and Water bought State Government bureaucrat David Cohen’s 42ha property for $1.7 million. The properties face one another, split by the Bruce Highway at Federal, near Gympie.

Mr Cohen’s property features a modern four-bedroom, colonial-style house.

Mr McDonald’s land had a four-bedroom renovated colonial.

Locals cannot understand the seven-figure difference.”There is no logical explanation. In fact, Gordon’s property is probably better than the other one,” said a Federal landowner, who declined to be identified, as she was negotiating with the Government.

Mr Donald, 45, who owns Noosa Livestock and Pet Supplies, was equally surprised to find Mr Cohen’s Skyring Creek Rd property had sold for $1 million more than his only weeks later.

But he had been battling cancer that had just gone into remission and was reluctant to fight Main Roads.

“They said that was the valuation … there was nothing I could do,” Mr Donald said.

“Stress is one of the things I don’t need in my life at the moment. I am not going to get lathered up. If I did I would just bury myself.”

Mr Donald has moved to a 16 ha property at Mutdapilly, near Ipswich, he bought for $500,000.

Mr Cohen, manager of planning engagement and co-ordination for the Department of Communities at Nambour, said he was happy with the deal.

“I could have got a bit more on the private market, but as they say, a bird in hand …” he said.

Asked to explain the variation in price, Mr Cohen, who bought the land for $27,000 in 1984, said his 42 ha contained a “group of properties together”.

“There is a substantial house and sea views,” he said, declining to comment further.

After the sale, he bought a 50 ha block of land at Cooloola for $975,000 and a unit at Tin Can Bay for $285,000.

Mr Donald’s land will be used for the new alignment of the highway. Mr Cohen’s will have dual use – part of the highway and part of the controversial Traveston Crossing Dam.

The sale of Mr Cohen’s property has been the highest price paid for a resumption in Skyring Creek Rd.

The Government is negotiating for a 41 ha property close to the former Cohen land. It was on the market a year ago – before the dam proposal was announced – for $750,000, and was recently valued at $900,000.

The Department of Natural Resources and Water bought two 8 ha blocks for $730,000 and $300,000 late last year. Two 2 ha properties sold for $535,000 and $350,000.

A spokeswoman for Natural Resources and Water Minister Craig Wallace said officers from the department’s State Valuation Service set the price paid for the Cohen property. They based the amount on its two titles capable of separate sale, “extensive improvements”, “exceptional views from the crest of a ridge” and because it had land certified for organic farming.

“Comparable sales evidence was sourced in order to set the level of the value,” the spokeswoman said.

“Properties are valued on their merits and every property has its own characteristics.

“All acquisitions in this dam project are undertaken using the same evaluation principles.”

Opposition natural resources spokesman Ray Hopper said the Government had serious questions to answer and Mary Valley residents had every right to be furious.

“How on Earth could the Government arrive at valuations that differ so much? How can a smaller property across the road sell for $1 million more only six weeks later?” he said.

About than 900 properties will be bought by the Government for the first and second stage of the dam. There will be more resumptions as 12km of the Bruce Highway is moved.

The Government has so far reached agreement with 199 land owners at a cost of $177 million.