Cairns real estate: Mount Peter development surge spurs loan talks
A development spike has Cairns Regional Council drawing down debt to fast-track new water infrastructure to service the city’s growing southern suburbs.
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A DEVELOPMENT spike has Cairns Regional Council drawing down debt to fast-track new water infrastructure to service the city’s growing southern suburbs.
New residential subdivisions in the Mount Peter corridor are going to require new pipelines, an eight megalitre reservoir and a pumping station and chlorination building in the near future.
“The water infrastructure that will be built as part of this project will have the capacity to service a total of 3750 lots,” a council report states.
“Accordingly, this infrastructure would support additional long-term development and population growth in the Mount Peter masterplanned area.”
The council is set to enter a deal with the State Development Department for a $15m interest-free loan to cover the lion’s share of the project cost.
The entire bill is expected to hit $18.6m, meaning another interest-bearing loan of $3.6m will also be required.
Division 1 councillor Brett Moller said the plan made sense.
“It’s a loan, we do have to pay it back,” he said.
“It’s an interest-free loan, though … to support that growing Mount Peter corridor, particularly the recent developments there.
“The developer’s got 446 lots going in, but it will contribute and help service in the longer term, which is another 3750 lots.
“So in terms of timing, in terms of growth, it’s opportune that we do take advantage of the interest-free loan from the state government.”
Council documents reveal the deal with the state government should save ratepayers $2m in interest charges over the loan’s 15-year lifetime.
As part of the deal, construction must start within a year of the loan’s approval with completion expected 18 months later.
HYDRO REPAIR BILL
Ratepayers will foot a $1.46m bill to repair sodium hypochlorite (hypo) dosing systems at four wastewater treatment plants across the city.
The systems are an integral to the sewage treatment process as they deliver chlorine in the final stage of treatment to allow water to be reused for the operation of the plant – for jobs like backwashing and cleaning.
Work will include the construction of new hypo dosing panels, and underground and above ground pipework.
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Originally published as Cairns real estate: Mount Peter development surge spurs loan talks
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