The inside story on the purchase of Woodfordia.

The 'unimproved' land near Woodford called Woodfordia has been purchased by Moreton Bay Regional Council (MBRC).

The Woodfordia site is the home of the Woodford Folk Festival, Splendour in the Grass and other events.

The Queensland Folk Federation (QFF) took the option to sell the land after inclement weather through Christmas and into 2011 proved to be devastating.

This weather had a huge impact on Woodford Folk Festival ticket sales, and later as the weather took a turn for the worse, large parts of the site's infrastructure was damaged.

With costs mounting and the negative impact on cash flow, the QFF had to act quickly and decisively. MBRC was contacted in the course of the QFF investigating its options.

After a robust debate by all the Councillors and the Mayor, it was agreed to investigate what role if any MBRC could or would play in the future of Woodfordia.

MBRC considered that the loss of this venue and the events including the Woodford Folk Festival, Dreaming, Planting and Splendour would be very 'hurtful' right across the Moreton Bay region.

Woodfordia contributes to the identity of Moreton Bay and attracts about $40 million injected directly into the local economy.

To lose this is unacceptable, especially when I have had numerous conversations with small business owners, some of them almost prepared to physically shake me in an effort to describe how challenging keeping the doors open is at the moment.

While it is guaranteed the loss of Woodfordia would lead to business closures, individual's homes and properties are susceptible to value loss as a result of less demand in the area.

When putting the proposal together, a number of mechanisms were put in place to ensure ratepayers are protected into the future.

An independent valuation was commissioned, the offer which was accepted of $4 million was at the lower end of the valuation findings.

If the QFF is to dissolve for whatever reason while MBRC has ownership over the land, about $10 million of infrastructure on that land gets inherited by MBRC.

The purchase of this land will go straight onto MBRC's balance sheet. This will strengthen the overall financial position of MBRC.

Should MBRC at anytime decide to divest of this asset, it is expected to sell for a higher price than the amount initially paid.

All day to day running of the venue will continue to be the responsibility of the QFF with a number of conditions. Maintenance of the site and its infrastructure are costs to the Lessee.

I would like to sincerely thank the community for its encouragement and feedback. I would also like to acknowledge the dedication of my fellow Councillors and the Mayor in their unanimous support of this investment.

If you have any feedback for me in this matter I would love to hear from you.

Go t o www.adrianraedel.com.au and click on 'contact me'.