Sunshine Coast Council receives final payment from Palisade Investment Partners for airport expansion

Sunshine Coast Council has slashed its debt after a long-awaited payment of more than $300m, as it reveals its multimillion-dollar projects for this year.

Sunshine Coast Council has declared it is debt free from the $334m Sunshine Coast Airport expansion as the organisation reveals its multimillion-dollar projects on the agenda for this year.

Palisade Investment Partners finalised the $314.4m payment owed to Sunshine Coast Council before June 30 for the 2450m new runway.

The payment reduced council’s debt to about $488m at June 30, 2022.

The project was funded from borrowings by the council, under an agreement it would be repaid in full by the investment management company.

Sunshine Coast Council Mayor Mark Jamieson said the payment would extinguish all debt council had incurred for that project.

“Importantly, the retirement of the debt associated with the airport expansion project will realise council’s original objective, which has always been to deliver this project – and the national and international connectivity it will enable – at no enduring cost to our ratepayers,” Mr Jamieson said.

It comes as the council’s 2022-23 budget reveals $44.4m of new borrowings to fund key projects.

The council will borrow $36.9m for waste management infrastructure, $5.5m towards a multi deck carpark at Maroochydore City Centre and $2m to go towards finalising construction of the $100m Sunshine Coast City Hall.

In 2021-22 the council budgeted $13m towards the Maroochydore car park.

A council spokesman said debt was forecast to be $508m at the end of the 2022-23 financial year.

Sunshine Coast Council Mayor Mark Jamieson said the airport expansion would allow for better national and international connectivity. Picture: Patrick Woods

He said the council operated a central treasury model, where it uses debt funding to finance the balance sheet, with the exception being for strategic projects.

Palisade’s payment included $290m for the new runway, apron expansion and related infrastructure, $7m for airport-initiated upgrades to the runway and $17m for the second instalment of the long-term lease premium.

Under the long-term lease arrangement with Palisade the council receives an annual payment based on five per cent of gross revenue from airport operations.

Palisade chief executive Roger Lloyd said the organisation was pleased to invest in a critical piece of infrastructure and looked forward to further investment in the future.

“The runway expansion project enables the airport to service larger aircraft and longer-range flights, allowing direct flights to more Australian and international destinations,” Mr Lloyd said.

“This improved connectivity will boost tourism and generate jobs and economic growth for the region.”