AOPA Australia’s challenge to Sunshine Coast Council over airport
An aviation expert has challenged the Sunshine Coast Council over a 2016 deal he questions was in the best interest of the community as a draft scheme for the airport’s expansion closes to public feedback.
Sunshine Coast
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A long-serving aviation figurehead has slammed the draft development scheme of a Queensland airport and demanded the premier put the plan “on ice” so a 2016 deal can be put under more scrutiny.
Aircraft Owners and Pilots Association spokesman Benjamin Morgan said the association had campaigned against the privatisation of regional airports across the country for a decade.
The Sunshine Coast Airport was declared a priority development area by the state government last year.
The proposed development scheme of the airport was closed to public feedback on August 8 after it opened in June.
In the scheme, six precincts are identified as part of the site’s future development, as well as a number of designated environmental buffer zones.
According to the report, precinct one would ideally be used for aviation facilities such as air traffic control and emergency services.
The report states precincts two and five are intended for aviation-related industries, as well as other developments including short-term accommodation, retail and tourist attractions between two and 10 storeys.
2018 letter to aviation industry
In a 2018 letter to the Sunshine Coast Regional Airports Tenants’ Association, sighted by this publication and signed by former Mayor Mark Jamieson, the council addressed the claim there was a proposal to rezone the northern portion of the former north-south runway for residential and commercial development.
“Council is unaware of any development proposal of this nature and as I indicated in my media statement on 1 May 2018, council has not considered potential hotel or bulk retail development on the airport site,” Mr Jamieson wrote.
“In this context, it is our council’s preference that development in the form of hotel or bulk retail occur in the Maroochydore City Centre and other appropriate commercial areas on the Sunshine Coast.
“Council would also not support residential development occurring within the Sunshine Coast Airport footprint, for obvious reasons.”
A Sunshine Coast Council spokeswoman did not answer specific questions regarding the council’s stance now on the draft development scheme.
Airport lease deal
Mr Morgan said he had never seen such a number of coincidences stack up in an airport agreement like the 2016 deal between the Sunshine Coast Council and Palisade Investment Partners.
He said the deal needed scrutiny before the draft development scheme proceeded.
According to the council’s own website, the airport was leased to Palisade because it offered “by far the best outcome for the ratepayer, namely a financial investment totalling more than $372m that would cover the capital cost to deliver the airport expansion project plus an annual return of five per cent of gross revenue in the form of an annual lease payment”.
Mr Morgan said the council “misrepresented” the deal.
“I’m not suggesting Palisade have done anything wrong, they have done what they’re legally entitled to do,” Mr Morgan said.
“(The council) made out to the community that accepting a piecemeal offering was the only option.”
He called on the council to reveal “the other bids” that were offered up with the Palisade tender.
The first stage of the 2016 procurement process attracted 17 “respondents”, according to the council website.
“If council refuses to do it, what are you hiding?” he asked.
“If you’re hiding, the premier’s office needs to intervene and they need to investigate.”
Mr Morgan said the council became a “material beneficiary” of the deal.
“AOPA Australia understands the concerns of the Sunshine Coast community in that that they are being expected to accept that the only successful bidder coincidentally happened to be the one in which the local government super fund was a major investor and one in which only a short time after the award of the contract that the mayor himself would receive an appointment to the position of chair of the LGAQ and as result a chair of the industry super fund, making the mayor and all council staff a financial beneficiary of the privatisation of the airport and future development of the airport,” he said.
“That is why the association is calling on the council for transparency and asking them to put on show all tenders for the Sunshine Coast Airport.”
The aviation expert said the issue was that council took “a decision to divest a billion dollar investment from the public, the public deserves to know was Palisade the best deal”.
“Keeping in mind this was a parcel of land that represents over a $1b worth of realisable development sold for $84m,” Mr Morgan said.
Sunshine Coast Council’s response
A Sunshine Coast Council spokeswoman said the council conducted an extensive open market expressions of interest process followed by a closed tender, “all of which was conducted under the provisions of the Local Government Regulation 2012” and overseen by an independent probity advisor.
“The EOI attracted 17 submissions from both domestic and international parties and heightened the competitive tension in securing the commercial partner,” she said.
“The EOI was followed by a closed tender process where short-listed respondents to the EOI were invited to submit indicative and binding bids.
“The outcome was the appointment of Palisade Investment Partners who are now lessees of the Sunshine Coast Airport and the owners and operators of the Sunshine Airport business.
“All submissions were submitted on a confidential basis and council is unable to release them.”
The spokeswoman said that although the council provided input into the preparation of the draft development scheme, Economic Development Queensland was the planning authority.
Aviation expert’s other issue with runway closure
Mr Morgan also said the draft development scheme could not have come about had the north-south runway not been closed.
The aviation expert said it was broadly recognised by the aviation industry and pilots that the north-south runway was the safest runway for small and medium aircraft to use on the Sunshine Coast.
“The new runway places small to medium aircraft at risk because they’re often flying into a crosswind that exceeds their design limitations,” he said.
“9500 airports around the world have multiple runways.”
Mr Morgan said he was also hearing that small and medium aircraft operators were struggling to secure leases at the airport.
“They’re not building hangars, not encouraging technology,” he said.
Sunshine Coast Airport people and communications general manager Kylie Ezzy said the proposed development scheme would support airport growth, deliver economic benefit, and create a modern, sustainable and competitive world class airport.
“Central to the scheme is recognition that the primary function of the airport is as a key regional and international airport and aviation precinct,” she said.
“A current example of the airport’s commitment is the investment this year of $7 million into the Aerospace Precinct to prepare sites for general aviation activities, including aeromedical care and tourism.
“In addition, planning is under way to redevelop and expand the airport terminal to meet future passenger growth.
“The scheme reflects great collaboration between council and the state government to enable development for economic and community benefit. Finalising the scheme now will provide planning certainty for the future growth of this important site.
“The decision to decommission runway 18/36 was based on a comprehensive safety assessment and risk analysis which was detailed in the 2040 Sunshine Coast Airport Masterplan that was published in 2019.”
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