Sunshine Coast Council continues to fund SunCentral for Maroochydore CBD development

Ratepayers will continue to foot the bill for SunCentral as the Sunshine Coast Council confirms the future role of its wholly-owned development group in the Maroochydore CBD project.

The search is on for a new leader of Sunshine Coast Council’s development company SunCentral as its role in the Maroochydore CBD project is confirmed.

The council-owned company was set up in 2015 to kick off development at the Maroochydore CBD and is funded by the council at a cost of about $2m a year.

Annual operating expenses show the company has cost ratepayers about $13.5m over the past seven years, including the more than $2m set aside for costs for 2021-22.

This week SunCentral confirmed it would start recruiting a new chief executive, following the resignation of John Knaggs who was at the helm since 2015.

It was understood Mr Knaggs would consider other career options later in 2022.

A council spokesman said a review into SunCentral, which was initiated after Walker Corporation was granted exclusive development rights for the project, was completed in late 2021.

Sunshine Coast Mayor Mark Jamieson with John Knaggs in the Maroochy CBD discussing developments in 2018.

He said it recommended SunCentral should continue with an “independent management role” and to represent council’s interests.

“The review recommended that the most appropriate mechanism from council’s perspective … would be to retain SunCentral with an independent development management role and with responsibility for representing council’s interests in the oversight of the Maroochydore City Centre development agreement with Walker Corporation,” the spokesman said via a statement.

“There are a number of remaining land and development transactions in the existing commercial precinct (Precinct 3) and Precinct 2 which are not part of the development agreement with Walker Corporation.”

Mr Knaggs, who will finish as SunCentral chief executive in mid-2022, was also the council’s CEO in 2012 when it purchased the 53ha former Horton Park Golf Course.

“I’m very proud of what everyone has achieved so far, and I look forward to seeing the City Centre evolve into the future,” Mr Knaggs said.

“Having at least seven cranes on the skyline by 2023 was a personal target and I am pleased to say that we will have achieved that and much more including securing the key tier one investment partnership with Walker Corporation on behalf of Council.

“I believe it’s the best possible time to hand the baton to someone else as we move towards the Brisbane 2032 Olympic and Paralympic Games and what that might mean for the city centre and the region.”

Sunshine Coast Council Mayor Mark Jamieson said Mr Knaggs deserved great credit for his work.

The council is the sole shareholder of SunCentral.

“When I announced that John would be the chief executive officer of SunCentral back in March 2015, I said that he was the man for the job and that he had the confidence and support of Council given the challenges that lay ahead at that time,” he said.

“His work with SunCentral, along with the partners they have secured on behalf of Council, have delivered the city centre we see coming out of the ground today.”