Orange Kart Club could expand into part of the former trotting track off Perc Griffith Way under a proposal that is set to go before Orange City Council on Tuesday.
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The proposed extension at the eastern edge of Orange would give the kart club use of the former recreation hall, which has been vandalised since the Harness Racing Club left the former Highlands Paceway.
The proposed extension of the kart club lease area came after concerns were raised last month about the paceway site becoming overgrown and falling into disrepair.
Mayor Reg Kidd describing it as "pretty derelict" saying posts were down, doors were smashed in at two buildings and office equipment and paper was all over the floor.
In a report that will go before council on Tuesday, Corporate and Commercial Services acting director Nick Redmond said the kart club has leased council-owned land adjoining the trotting track for about 50 years.
"It is considered the proposed use of the hall by the club would be beneficial to the community and council," Mr Redmond said.
He said the council has arranged the reconnection of the power and security system at the recreation hall
Mr Redmond said the council had contemplated the development of an Orange Tourist Park at the former paceway and it undertook a process to test the market and attract a tourist park operator. However, it did not deliver an outcome and the proposal was shelved and the council is instead focusing on upgrading the current caravan park.
Mr Redmond said a number of other buildings at the site have now been demolished and cleaning up and removal of rubbish is expected to the finalised in the coming weeks.
At present the constructed kart track is used for sprint and endurance kart racing and an expansion of the present footprint would enable similar sports access including speedway karting and motocross.
"The proposed facility would mean that at least twice a month the facility would host events that would draw outside visitors to the town."
"It would be expected the expanded "motor park" would attract outside visitors at least 24 times a year providing significant economic benefits."
Council has also previously been approached by the Orange Equestrian Club with a proposal to lease the former harness track. However, due to loud noise from the kart club the council considered the site as not suitable for the equestrian club, particularly in relation to dressage, and suggested other sites would be more appropriate.
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