Until now, the caravan park has been located on crown land, and leasing arrangements were limited to 21 years.
Freehold ownership will allow council to consider longer-term lease options, providing certainty for future operators and encouraging private investment into the caravan park.
Council endorsed the purchase of the land for the Victorian Government at its March council meeting.
Mayor Shane Sali said purchasing the land would provide council with greater flexibility to plan for the future of the site and support long-term investment.
“Owning the land allows council to remove the restrictions that come with crown land management and opens the door to longer-term lease arrangements,” he said.
“This, in turn, will make the site more attractive to potential operators who may be willing to invest in upgraded and improved infrastructure for the benefit of visitors and the broader community.”
“This is about good long-term planning, responsible asset management and supporting tourism and economic activity in our region.
“Securing the land puts council in a much stronger position to plan for the future of this site.”
The purchase will now progress through the required state government processes, including approvals from the finance minister and the Victorian Government Land Monitor, certification of the title plan and formal offer of sale to council by the Department of Transport and Planning.
The money for the purchase will be drawn from council’s Insurance Property Settlements Reserve, which was established following insurance settlements relating to the October 2022 floods and committed to investment within the Victoria Park Lake precinct and caravan park.
Cr Fern Summer said the caravan park played an important role in the region.
“The Victoria Lake caravan park supports events, visitors and local businesses,” she said.
“This decision ensures council can better manage and enhance an asset that contributes to social, recreational and economic outcomes across the municipality.
“Ultimately, this is about creating opportunities to improve facilities and ensure the caravan park continues to serve residents and visitors well into the future.”
Once the land purchase is finalised, council will consider future options for the operation and development of the caravan park in line with its leasing and licensing policies.
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