Council defends decision to pay out $5m

Wangaratta council has ended its parking contract with the Co Store eight years early, a deal that will save ratepayers $4 million in the long-term. Council had to payout $5m to Co Store owners Prudential Commercial Investments to exit its 20-year contract, however, council said the expense would have been $9m had it gone full-term. "Ending the agreement removes a significant annual operating cost, eliminates the risk of escalating payments, and, in turn, strengthens council’s long-term financial position, delivering a saving of more than $4 million compared to continuing the agreement," a council spokesperson told the Wangaratta Chronicle. Council formalised a 20-year contract in May 2012 to increase car parking by 145 spaces in the Co Store carpark and this commenced in August 2014 when the new Co Store was built. It was one of the final decisions made by that council which was later dismissed by the Victorian government in 2013 for other reasons. The decision to build the three level carpark was, in part, based on the projected population growth in Wangaratta and its need for more parking in years to come. However, council reports that Co Store car parking use has been lower than expected throughout the agreement to date, resulting in higher costs for council than initially anticipated. "Although this decision will put additional pressure on council's budget in the short-term, it will provide long-term financial benefits for council and the community," the council spokesperson said. "The agreement has been ended by mutual agreement with Prudential Commercial Investments." Rural City of Wangaratta Mayor Irene Grant said, “Councillors have reviewed the Co Store agreement on numerous occasions over the years and are confident this decision is in the best interest of council’s long-term financial sustainability, the cornerstone of our 2025-29 Council Plan". "While ending the agreement comes at a short-term cost, it puts council in a stronger financial position in the long term, while also removing the risk of escalating cost over what would have been the remainder of the agreement,” Cr Grant said. Prudential Commercial Investments director, Stephen Nicholls, said, “From 1 March Co Store car parking will be free for customers for three hours, seven days a week and all year round". "The public will be able to purchase day passes and monthly passes if they have longer-term needs," he said. "We have exciting plans to invest in the Co Store, and further develop and improve the Co Store for the local community with the introduction of new cost-focused food options, and making the Co Store a great place to visit, stay, and shop in the North East Region.” In addition to Co Store parking, existing council parking arrangements remain in place in the CBD. Grow Wangaratta vice president and former mayor Dean Rees said they are right behind the three hours of free parking in the Co Store, seven days a week, all year round. "This (free parking) will get the carpark full on many occasions rather than parking out on the street and having to pay," he said. "If it's going to offer more available parking free of charge it's another step forward to grow Wangaratta." Council confirmed that due to commercial sensitivities and the inclusion of confidential information, the matter to exit the contract was discussed in a closed session at the unscheduled council meeting held on 1 December 2025. It also confirmed that existing paid parking arrangements in the Wangaratta CBD remain unchanged. "Wangaratta has a range of paid and free parking options throughout the CBD," the spokesperson said.

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