SMA approached council about flying fox over the Torrens, as hotel inquiry kicks off

Adelaide Oval is dragging conferences, seminars and functions away from other parts of the CBD, the Adelaide City Council says — as it was revealed the Stadium Management Authority inquired about constructing a flying fox over the River Torrens.

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Adelaide Oval is dragging conferences, seminars and functions away from other parts of the CBD, the Adelaide City Council says — as it was revealed the Stadium Management Authority inquired about constructing a flying fox over the River Torrens.

Lord Mayor Sandy Verschoor and council chief executive Mark Goldstone fronted the select parliamentary committee into the proposed Adelaide Oval hotel and the $42 million contribution from the State Government to build it.

The council has been steadfast in its opposition to the proposal, which the SMA says will ensure development of new revenue streams other than game-day sales in a bid to win the “arms race” with other stadiums.

After questioning from SA Best MLC Frank Pangallo, it emerged that the hotel wasn’t the only other revenue stream the SMA had investigated.

“Has the SMA approached the council about expanding its rooftop experiences, such as other adrenaline rush-type concepts … like a flying fox,” he said.

Council’s legal services consultant Brett Kahland said there had been a discussion about the possibility.

“In an informal capacity … council was approached with the question of what types of permits may be required for such an operation,” he said.

Mr Pangallo said he understood the flying fox would end on Elder Park.

An artist impression of the Adelaide Oval Hotel

Ms Verschoor said although the SMA did not have to pay land tax or council rates, they were still being “greedy” in their expansion plans.

“We don’t know what is next,” she said.

“If they actually need this hotel development to balance their books, what happens in five to eight years time when their books aren’t balanced again.”

Mr Goldstone said he was watching the increased activity of the Oval away from its core sporting services with interest.

“There is no doubt that the Adelaide Oval being used for conferences, seminars, meetings, functions has taken away from other parts of the city that legitimately have provided those services in the past,” he said.

“And as that continues to grow, that continues to have an impact on the CBD and the way the city operates and it disincentivises further developments that can provide those sort of facilities.”

The council has spent around $25,000 on external legal advice so far regarding legislative requirements have been met around the proposal, especially around whether it was properly consulted.

The committee also heard from Majestic Hotels owner John Culshaw, who referred to the project as a “honey pot”.

Lord Mayor for the City of Adelaide, Sandy Verschoor (AAP Image/ Brenton Edwards)

The State Government has consistently said the $42 million grant is at a “commercial rate” of 4.5 per cent increase over 30 years on money the Government can access at 3.2 per cent.

Mr Culshaw, who is developing the former Channel 9 site at Tynte St in North Adelaide, said developers were annoyed at how fast the project got through the system.

He said the SMA had an unfair advantage, saying he would expect to pay $250,000 a year on land tax for an equivalent development.

Labor Treasury spokesman Stephen Mullighan said this proved it was a “sweetheart deal for a Liberal mate” referring to Liberal Party president John Olsen, who is deputy chairman of the SMA.

Infrastructure Minister Stephan Knoll said nothing presented at the hearing showed the agreement wasn’t anything but a great deal for South Australians.

“This is a win for everybody … this is a great deal and those who oppose it need to either get out of the way or get on board,” he said.