Mayor Tom Tate’s radical proposal for Gold Coast Convention and Exhibition Centre

Mayor Tom Tate has outlined a radical proposal to absorb the Gold Coast Convention and Exhibition Centre into the city’s property portfolio without costing ratepayers a cent. Here’s how it would be done.

Mayor Tom Tate has outlined a radical proposal to absorb the Gold Coast Convention and Exhibition Centre into the city’s property portfolio without costing ratepayers a cent.

Speaking at Labrador Hockey Club on Wednesday, Mr Tate announced his desire for the Queensland State Government to buy out embattled Star’s interest in the GCCEC and then transfer ownership of the site to the council as “an act of kindness.”

The centre, which will host events at the 2032 Olympics, is owned by the state. The Star Entertainment Group holds a long-term management rights deal.

It follows the announcement on Tuesday, as part of the government’s ‘2032 Delivery Plan’, that land for the Gold Coast Arena at Southport is set to be transferred into city ownership so it can be developed in conjunction with private enterprise at no cost to the state.

Mr Tate said he wanted a similar deal for the Broadbeach precinct, which first opened in 2004.

“That’s another project where I want the Convention Centre to be transferred to the city as well,” the mayor said.

“If that happens then the expansion of that (GCCEC) will be a lot bigger than somebody else running it. As you’ve seen over the years there has been hardly any upgrade at all. I want to increase the size of it and I’ll negotiate with the state government how we fund it.

“I’ve got my funding model in my head.”

Council would seek a 50-50 split with the state for the cost of upgrading the centre after it took control.

“But first thing is first. With the Star assets being broken up, we want a piece of that part of it,” Mr Tate said.

“We’re happy to jump in and start running the operation of it now so there’s no negative cashflow to that property – and that would help the state government.”

Asked if Council should pay Star directly to acquire their interest, Mr Tate put it bluntly: “No. The state can do all that. We want a transfer, with an act of kindness … That’s how a good deal is done.”

Mayor Tom Tate at The Courier Mail’s Future Brisbane event on Tuesday, where details of the state government’s plan for the 2032 Olympics were revealed. Picture: Adam Head.

Mr Tate was adamant that a rejuvenated convention centre would be a win-win situation for both state and council.

A major selling point for the Gold Coast winning the rights to host nine Olympic sports in 2032 was the city’s willingness to assume development costs for a budget-conscious state government.

Mr Tate said he believed the same principle that won the city its land for the Gold Coast Arena in Southport will also help them acquire a major asset in the GCCEC.

“That project (Gold Coast Arena), the deal is for us that at the moment the land belongs to the state government and we are a trustee. You can’t do a deal at that level,” he said.

“I said that the land has to be transferred to the City of Gold Coast and from there we’ll design, construct, have a joint-venture and the Arena will be born.

“I’d like it to be completed in four years so that we can host entertainment and all those things. The upside for us is that it’s going to ignite the CBD in Southport, so the value of all our Council property in Southport is going to gain more value as well.

“It’s a great deal for the state government.”

The Gold Coast Convention and Exhibition Centre pictured during the Commonwealth Games in 2018. Photo by Bradley Kanaris/Getty Images.

The mayor said the city was hungry to develop its corporate facilities and was ready to invest in a major expansion and refurbishment of the convention centre in what he believes will yield about a 25-to-1 return on investment.

“I think the events business is very strong. We need more event business facilities,” Mr Tate said.

“We’ll use part of it for the Olympics, like a basketball court, but really I want to build corporate business further.

“The upgrade there (at GCCEC), that’s part of the conversation. If we’re happy for transfer to be effected, I’d like to say a joint 50-50 funding deal would be fair.

“We’ll get return on investment and the whole of the city would get the multiplying factor of more business conventions coming to the Gold Coast. In the long-term that multiplying factor is like 25-to-1.”

Originally published as Mayor Tom Tate’s radical proposal for Gold Coast Convention and Exhibition Centre