Wodonga Council has passed a motion to sell land at Logic to Blanalko Pty Ltd, the property arm of SCT.
SCT is a significant freight company with a turnover of $500 million a year and 1000 employees at sites across Australia.
Its investment at Logic is set to be in the vicinity of $17 million which also includes investment at Altona and long-term plans for the Wodonga site.
Once operational, the terminal is projected to employ 118 full-time people.
There will be nearly 100 indirect jobs created as a result, which equates to $16.5 million worth of wages and salaries injected into our community.
Wodonga Mayor Cr Rodney Wangman said development and continued growth of Logic is a step in the right direction for the city.
"The vision for Logic is not just the council’s vision but is now a shared vision of regional organisations, business and developers, particularly those in close proximity to the site," he said.
Cr Wangman said he and fellow councillors had given great consideration to the 22 submissions which had been received about the land sale, many of which were supportive of the proposal to sell the land for the purchaser’s intention of building a rail terminal on the site.
"The council has consistently indicated over time that the development of a rail terminal at Logic is the critical final pillar in the realisation of the full potential of the Logic freight hub on regional, state and national development," he said.
"Importantly, the development and continued growth of Logic will allow the council to have a diversified rate base for the city with commercial rates providing a growing component.
"The site allows for further economic opportunities with has the capacity to allow for further growth and development."
Cr Wangman said the council has followed the appropriate process as outlined by sections 189 and 223 of the Local Government Act.
"A rail terminal at Logic has been a key feature of council plans adopted by the council throughout the past decade," he said.
"These plans are put out for public consultation each year, also under section 223.
“It has been no secret that this has been an objective of this council.
"Certainly some details have been kept confidential to as not jeopardise what is an important project for the city or to prejudice future developments and land sales.”
Cr Wangman also said that it was important to note that the council’s borrowings presently stand at $29.7 million with this figure rapidly declining each year with the growth of new rate income.
He said the cost to service council’s borrowings is 3.4 cents in the dollar, on average over the next 10 years.
Of the total council debt, $7.8 million can still be attributed to Logic, which is rapidly declining each year due to sales and rates which exceed more than $700,000 per annum.
Cr Wangman also reiterated that the construction of a rail terminal is at the cost to the developer.
All agreements and contracts include clauses that mitigate and protect council’s investment. The offer has penalties and damages payable in the event the purchaser doesn’t meet the obligations set out.
"It is the council’s position that the benefits of this project far outweigh the concessions made to attract this investment to our region," he said.