The sale of a 8,223-square metre block in Maleny will go ahead despite concerns Council would be selling to a property developer for a modest sum and not putting the sale out to tender or auction.

Sunshine Coast Council voted last week to sell the block on the outskirts of Maleny to housing developer Maleny Estates for $850,000.

In exchange for the parcel, the developer would hand over a narrow block — about 1300 square metres — for $130,000. This would allow council to lay water and sewerage infrastructure, and connect nearby roadways.

Councillors David Law and Joe Natoli voted against the motion, raising concerns of a lack of information and clarity about the deal.

However, Division 5 Councillor Winston Johnston said suggestions the land was worth up to $1.7m were “farcical”. He said the deal was a clear and common-sense solution that was in the interests of council, the community and the developer.

Under Queensland law, councils are meant to sell off  “valuable” assets either by tender or by auction.

However, council officers reported that this was an allowed exception because it was in the public interest for the land to go to the developer.

Their report says the council does not need the land, and resuming the smaller lot would be more expensive than the land swap.

“Given the remote location of proposed Lot 1 and restricted access, it is not considered appropriate to dispose of the parcel by the way of tender or auction,” the report says.