Redland council reviews its controversial property arm

The controversial investment arm of a southside council is under review but likely to get a new lease of life, despite calls for it to be wound up.

The Doig St carpark in Cleveland, where the RIC is behind plans to redevelop the site for a multi-storey building.

The controversial investment arm of a southside council is expected to be given a new lease of life, despite calls for it to be wound up, and after posting a small $37,000 profit after tax at the end of June.

Redland City Council held behind-closed-door meetings on Wednesday to discuss the fate of the Redland Investment Corporation, which was set up in secret in 2014 to strip back “surplus” council land in the city’s $2 billion property holdings.

After yesterday’s meeting, mayor Karen Williams said the time was right to review the Redland Investment Corporation and council’s Economic Development Advisory Board.

“As we recover from the COVID pandemic it’s important we take advantage of these opportunities and this review is all about building on these foundations to deliver the infrastructure, jobs and partnerships needed to support the community.”

Cr Williams said both reviews would be run in parallel, with no impact on existing RIC projects.

Since the public became aware of the body in 2015, it has attracted criticism for overseeing a number of controversial developments and decisions and for its lacklustre financials.

In the five-and-a-half years it has been operating, it has had an average comprehensive annual income of $300,659 which included a $607,000 annual loss in the 2015/16 year and a $555,468 loss in the 2018/19 financial year.

It has also been behind some of the Redlands’ larger developments including building a carpark at Weinam Creek for the ferry terminal this year, overhauling the Capalaba Town Centre andbuilding townhouses at 521 Old Cleveland Road East, Birkdale.

This week’s meeting followed a council review in March which investigated the corporation’s future and discussed whether to wind it up.

RIC is also subjected to stiff audits from the state government’s Auditor-General and operates under the same legislative framework as the council.

More than 250 residents backed a push to get rid of the body last year, following a 2018 statewide Crime and Corruption Commision report which threw the spotlight on local council property arms.

Redlands2030 community group first started calling for the corporation to be wound up after a number of projects failed to come to fruition and the $2.3 million sale of land at 108 Old Cleveland Rd, Capalaba in 2015.

“RIC also sold the Wynyard St carpark to Hookers in 2016 and today the sign on that block says there will be new shops there in 2021,” a Redlands2030 spokesman said.

“It is also behind plans to redevelop the Doig St carpark in the heart of Cleveland for a multi-storey aged care centre.

“There is no sign of any building activity over the years but potentially the loss of more parking in the CBD.

“There was also a unit project in Oaklands St at Alexandra Hills where there used to be a child care centre, which the council gave to RIC, but it ended up losing money on.

“RIC is also building apartments at Birkdale which we don’t think is really council core business as they are not social housing and are to be sold for a profit.”

Details of yesterday’s closed-door meetings are yet to be revealed.