How Fraser Coast councillors voted on $90 million CBD plan

A deep dive into how councillors voted on one of the biggest decisions in the region’s history has been revealed as business leaders respond to plans to start work on a $90 million heart for the Hervey Bay CBD.

Prominent Fraser Coast property and industry leader Glen Winney has applauded the historic $93m council CBD plan as a way of future-proofing Hervey Bay’s CBD – if it is done right.

The Fraser Coast Property Industry Association (FCPIA) president said only an iconic building would do justice to the momentous decision he believed would generate a wealth of ongoing job opportunities and enormous growth in the region.

“We need an iconic building to reshape the CBD,” he told the Hervey Bay Chamber of Commerce Lunch attendees on Friday when he spoke on the issue.

“Most cities around the world have recognisable buildings that attract people, tourists and investments, we don’t. The worst thing the council could do is create an ordinary building.”

The project, which will be funded by $40m from the Hinkler Regional Deal, will have an almost $100m price tag – leaving council to secure a loan of more than $50m to complete the project.

The project will include the council’s new headquarters on Main Street in Pialba, a new Hervey Bay Library and incorporate a Disaster Resilience Centre.

Concept designs for the new Fraser Coast Council library in Hervey Bay.

The plan had been three years in the making, with extensive consultation and consideration going into a concept and “functional brief” that council voted in a strong 9-2 majority at last week’s council meeting.

Mr Winney was full of praise for the councillors who he said showed the courage to vote for the project that would replace a dysfunctional CBD that has lacked identity for decades – a result, he said, of five seaside villages which grew into a significant city, now Australia’s 29th largest.

“This is our once in a lifetime opportunity to change our CBD and the future of how Hervey Bay is perceived and used. We will look at the CBD pre and post this project- like Stocklands and The Marina,” he said.

Mr Winney, who is the principal of commercial real estate agent Win Projects, said when finished, the CBD would attract investors and new business.

Glen Winney from Win Projects at The Springs Estate. Photo: Cody Fox

“It will bring 400 council workers out of suburbia and put them in the CBD. It will bring 1000 people to the library each day. This will restimulate the CBD – bringing small retailers,” he said.

Not only would the project’s construction alone create thousands of jobs, it would also provide opportunities for unskilled workers, he said.

“The CBD will start to revitalise through private investment. It will be a location that people will eat at, have coffee, attend medical appointments, shop, spend their leisure time and pick up essential items. Businesses will spring up everywhere around the council chambers and revitalise the CBD.”

The Fraser Coast business leader said the decision would also create endless opportunities as a tourism hub and create housing diversity around the CBD and the council should encourage investment with a CBD strategy of fast tracking, incentivising, headworks, applications and marketing investment in that central area.

“There are going to be so many opportunities from property, retail, entertainment, living. This is a massive opportunity for local businesses to position themselves now and take advantage of the wave of business coming.

“We have around 60,000 people in Hervey Bay and we could grow to 100,000 in 20 years, especially post Covid. We need a CBD and Council chambers ‘fit for purpose’ for 20 years plus.”

His sentiments echoed the majority of councillors at last week’s council meeting where nine out of the elected 11 endorsed the project’s functional brief and concept design following a lengthy discussion.

Driven by cost concern, Mayor George Seymour foreshadowed an alternate motion sticking with three out of the four elements of the proposed functional brief but shaved a proposed $20m from the cost by accommodating existing positions in the Tavistock St building.

It was an alternative plan that would strip the new project build of a roof terrace and onsite parking.

Under the Mayor’s proposal, the building costs would weigh in at $73, 700 000, versus $93 900 000, saving $700 000 a year in interest and depreciation costs, he said.

Councillor Denis Chapman, who encouraged all councillors to support the motion, called the project a gamechanger that should not be skimped on at the expense of staff morale.

Denis Chapman.

He said after visiting other councils and seeing staff work in proximity, he felt it was important for this council’s productivity and unity to move staff under the one roof.

“I think that this is going to be the future, there’s been previous councils talking about this new building, but it’s to grow our community. We only get one chance in a lifetime to do a project like this and the Hinkler deal is funded $40m into this project,” he said.

Cnr Chapman said the large price tag, that would not see much change from $100m, should not stop the project.

“Debt is not a bad word, debt is our way of moving forward. I feel that this extra money that we spend today, we save tomorrow.”

Mayor George Seymour disagreed and said ratepayers would feel the decision for decades.

“That is a significant extra cost that we are going to have to find every single year for an admin building.

“My motion keeps the library at the much larger space but it substantially reduces the number of council offices that are there. I think we can still do what we want to do in terms of revitalising the Hervey Bay CBD, but it’s much more financially responsible,” he said at last Wednesday’s meeting.

Fraser Coast Mayor George Seymour. Photo: Cody Fox

He also believed the cheaper alternative would avoid the future headache of producing a budget that fitted within the rate rises and expectations of the community.

The Mayor’s proposal equated to doing the project “badly” in Councillor David Lewis’ eyes.

“My concerns are that it is a false economy to try and save some money here,” he said.

The $20m saving did not paint an accurate picture when the exclusion of carparking was considered alongside future expenditure to accommodate council staff that would not be moved into the new building.

The Division 6 Councillor said there was value in creating a good facility that would attract and retain staff and the tourist potential could not be ignored.

Fraser Coast Regional Council – Cr. David Lewis.

“If we can make this a building that is the pride of the town – it is an important part of making our city look smart and like the sort of place you want to come to. I don’t think we get any return on mediocrity. If we want to save money we should do it by not doing something or deferring something but I think it is a bad idea to save money by doing something badly. If this is worth doing, it is worth doing well – let’s make the most out of it.”

Councillor David Lee, who urged all councillors to vote in favour for the recommendation, told the Mayor the project was the best outcome for the community.

“This proposal is going to be iconic, lively, expansive, visionary and strategic – we are setting up the Fraser Coast region for growth and prosperity by taking a long-term view into our future.

“The critical milestones in the Hinkler Funding agreement – resilience, liveability and economic vitality, have either been met or preceded. The contrast between this proposal and the foreshadowed motion in terms of meeting the critical Hinkler elements couldn’t be clearer.”

Cnr Lee said the bold decision to back the plan would leave a legacy for future generations.

“We must all think beyond the next election for what is best in the long term interests of our community. That’s our legislative responsibility – we can afford this, what we cannot afford to do is take short cuts and get a suboptimal outcome.”

Division 9 councillor David Lee.

Extensive consultation and consideration of the project led to Councillor Zane O’Keefe’s support of the project, he told the meeting.

“For me the decision is an easy one because we have consulted on this project extensively,” he said.

“If you have a look at the service delivery criteria that we all came up with, it meets the investment logic mapping framework, councillors’ decision to co-locate buildings, councillors’ adoption of the operational footprint study, councillors’ desire to comply with the Australian library standards, councillors’ desire for a new building to be iconic, councillors’ desire to accommodate parking within the site, councillors’ desire for the building to be the economic, social and liveability catalyst for the city centre and councillors’ desire for the building to set the benchmark for business investors and developers.”

Division 5 Councillor Jade-Lee Wellings spoke at length in support of the decision, describing the rigorous consultation process and appearing to also suggest not all of her colleagues had taken as much of an interest as others, saying the functional brief the councillors were being asked to endorse was the product of ‘hours upon hours of work by staff consultants and some of the elected’.

“The functional brief that we are being asked to endorse today is the product of hours upon hours of work by staff, consultants and some of the elected,” she said

“All of this has come at a cost, not just in time but in money – the operational footprint study alone conducted interviews involving 80 staff – the process has been very rigorous.

“This project is about investing into our city heart, it’s about creating something for our children’s children, it’s about being the catalyst for robust investment to deliver good economic outcomes.”

Cnr Wellings said the Mayor’s foreshadowed motion overlooked the organisations’ staffing accommodation problem.

“I appreciate Mr Mayor is trying to provide a cheaper option, however our capital program, our operational budget and our long-term financial sustainability all needs to be considered as a whole, not by project by project. No rate rise can be attributed to one decision or one project.

“There is never an easy time in the political cycle to be bold and make big decisions that some may not find so popular, but we were all put here to do what we think is best for our community, and what I think is best is to do it properly or to not do it at all.”

The councillor also questioned CEO on affordability for the new buildings.

“I believe the council can afford it- out debt is the lowest it has ever been,” CEO Ken Diehm said in response.

“Debt is under $60m and at one stage it was about $120m. If the community could afford $120m debt 10 years ago, it can afford the sort of debt that we are looking at now. But it will require a review of our budget, and a re prioritisation of projects. I couldn’t tell you what they would be because that is a matter for council to determine.”

He said the project would provide a contemporary workplace where staff did not have to work in substandard conditions, such as some offices that currently lacked running water and ample toilet facilities.

“If we significantly improve the culture and collaboration and teamwork within the organisation there will be automatic flow on benefits from it. It’s been proven by countless studies that an organisation with a highly effective culture provides very strong service delivery.”

All councillors were in favour of the project except two who voted against the motion – Cnr Seymour and Division 3 Councillor Paul Truscott who did not speak on the matter.

The council anticipates calling for tenders for the building works by October 2022 after the detailed design is complete, leading to construction starting in about March 2023.

The building is due to be completed by December 2024.