The ‘use it or lose it’ clause that may be key to Burswood racetrack’s future

WA Labor may rely on a “use it or lose it” clause in a 12-year-old multimillion-dollar Barnett government-era land sale to Crown Resorts to seize back a portion of land where it plans to build the southern hairpin of its Burswood racetrack.

However, questions remain over whether the Cook government could fulfil its promise that it would not spend any money on the land, with the 2020 Victorian Crown Royal Commission revealing that clause allowed the state to buy the land back – not get it for free.

While the WA government remains tight-lipped on the final design of the controversial racetrack, noise and concept plans released as part of an environmental review on Thursday gave the clearest indication yet the course will travel into land owned by Crown.

A noise map shows the hairpin travelling within metres of the Crown Towers pool complex.

Deputy Premier Rita Saffioti has consistently said the government would not buy any land for the racetrack and a spokesman confirmed to this masthead that it was scrutinising a clause in the 2013 sale conditions that required Crown to develop the land – which had not yet occurred.

“A portion of the southern end of the former golf course site was sold to Crown by former Liberal premier Colin Barnett in 2013,” he said.

“As part of that Barnett government deal, the land in question required development to commence in 2020, which has not occurred, and be completed by 2028.

“The state government is working through those details, depending on the final design of the project.

“Detailed design work commenced in July following the consultation process and is expected to be finalised in coming weeks.”

However, the Victorian Royal Commission into Crown Resorts 2020 report suggested the clause only allowed the government to purchase back the land and that at the time Crown was trying to remove that clause from the agreement.

“[The sale agreement] required Crown to commence development of the undeveloped residual land (approximately 3 hectares) by no later than September 2020 and for all development on the land to be completed by September 2028,” the report read.

“In failing to meet this obligation, the state has the option to repurchase the undeveloped residual land at the original purchase price.

“As Crown Perth has no current plans to develop this land, Crown representatives are continuing to progress discussions with the Premier and Minister for Gaming for an extension of time or removal of this requirement from the Sale and Development Agreement.”

The 5.8-hectare lot was purchased by Crown in 2013 for $60 million.

Saffioti was approached for further clarification of her comments, but a spokesman referred back to her original statement.

Crown declined to comment.

Opposition Leader Basil Zempilas has hammered Saffioti over whether the $217 million project, which includes an outdoor amphitheatre, would require purchase of land or a land swap with Crown Resort’s owners Blackstone.

He said the new maps showed the track travelled close to the Crown pool and relied on Crown Resorts’ land. Zempilas called on the government to come clean.

“What is the deal that releases this parcel of land right next door to Crown Casino, so close as detailed by those images? What is the deal that allows that land or transfers that land back to the state government to allow the racetrack to be built?” he said.

“If there is no deal, then the premier needs to explain it because it is murky at best. As it stands, the answers have not given sufficient clarity.”

Saffioti’s spokesman said Zempilas was all over the place.

“We know Basil Zempilas and the Liberal Party don’t support the concept of a motorsport street circuit event occurring once a year but didn’t realise it was because of his desire to not be disturbed as he lay by the pool at Crown Towers,” he said.

“He is now arguing you can’t have a vehicle within a kilometre of the Crown pool when we have hundreds of buses go past that very same pool every week.”

The new maps were part of a Main Roads referral of the racetrack and surrounding sporting and entertainment precinct to the Environmental Protection Authority.

The EPA is calling for public feedback over the next week over whether to launch a full environmental review of the project.

Main Roads argued the project was “not expected to result in significant residual environmental impacts” and was not legally required to undergo a full review.

The noise report shows V8 Supercar races at the track will be heard in East Perth, South Perth Maylands and Victoria Park.

Residents in apartments at Bow River Crescent may be subjected to noise around 91 decibels which the World Health Authority says exposure should be limited to four hours per week.

Greens leader Brad Pettitt said if the racetrack fell over it would be due to noise issues.

“My sense is it will struggle to comply with that. That’s a good basis for the EPA to assess this,” he said.

Save Burswood Park Alliance convenor Robin Harvey said the government’s referral documents appear to only reference its conceptual site plan.

“They contain no further design or detail, the same cartoon site plan of the proposed precinct as issued for its faux consultation process earlier this year,” she said.

“The documents do not include any further detail that shows build structure sizes, locations, heights, forms and especially proximity to existing residences.

“The documents show no further detail regarding its proposal racetrack roads and their proximity to existing residences.”