Gold Coast City Council to miss out on $48m in infrastructure charges from failed Ralan Group’s Ruby and Sapphire developments

The Gold Coast City Council will take an eight-figure hit to its future income in the wake of developer Ralan Group’s half-billion-dollar collapse.

GOLD Coast City Council will take a $48 million hit to its future income in the wake of developer Ralan Group’s half-billion-dollar collapse.

The Sydney-based proponent of the Ruby and Sapphire towers at Surfers Paradise would have poured tens of millions of dollars in infrastructure charges into council coffers in coming years, but the future of the projects remains uncertain after Ralan went into administration on July 31.

What Ruby would have looked liked had it been completed.

Planning documents reveal Ralan would have been liable to pay $9.5m for Ruby’s second stage; $12.2m for stage three, $6.6m for stage four and $19.7m for the two towers of its Sapphire project had they gone ahead.

The council has included $80 million in “contributions from developers” in its capital income statements for the current financial year and has allowed the same amount as a forecast each year to 2028-29.

The council said those figures were based on “trends” not expectations of actual developments or projects.

“Figures are based on trends and serve as an estimation for projected income, not as final budget for the City’s activities.”

The council said the infrastructure charges for Ralan developments had not been included in current or future budgeting and “not receiving this income will have no immediate impact on the City’s budget or activities”.

Only the first of four stages of Ruby has been completed. Picture: Jerad Williams

“Infrastructure charges are recognised by the City at the time of commencement of the use,” the council said in an email through its media department.

The council said all charges for Ruby’s first stage had been paid.

Planning documents show the site’s former owner had paid the bulk of charges owed for the first tower through a previous development application.

Ralan Group had flagged construction of the next stages of Ruby to begin next year with all four stages slated for completion in 2025.

The council’s charges would have fallen due as final plumbing inspection or building certifications were completed on each stage.

The developer has already paid more than $400,000 in development application fees.

The city also looks set to miss out on rates income for 2045 future apartments that will be either delayed or scrapped as administrators search out buyers for the sites of the failed projects, including the current Paradise Resort.

Property records and preliminary figures released by Ralan’s administrators revealed sales 219 of the 243 apartments in Ruby’s first tower had settled, however 19 contracts had failed to be finalised amid reports buyers were refused finance.

Deposits paid for unsettled tower one apartments totalling $3.76 million, were absorbed by Ralan Group through unorthodox side agreements, leaving just $116,300 in trust.

An artist's impression of the four stages of the Ruby development by Ralan Group. Photo: Supplied

Across the Gold Coast developments, there is a $233.4 million shortfall in deposits paid by buyers, who administrators have told should “prepare for a poor outcome”.

Ralan Group, which planned to build the remaining Ruby towers on what is currently Paradise Resort, employs between 300 and 350 people across the Gold Coast and Sydney.

Ralan Group founder and director William O’Dwyer has not returned the Bulletin’s calls.

Drone aerial images of Ruby tower 1 of the Ruby Collection. Supplied by Ralan Group

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Welsh-born Mr O’Dwyer, 53, stormed into town in 2015, splashing $95 million on Surfers Paradise properties and quickly becoming one of the suburb’s biggest landholders.

The 2.5ha Ruby development is named after the youngest of his three daughters while the company name Ralan is named for his older daughters Rachel and Lauren.

In 2016, Mr O’Dwyer backed out of a $39.5 million deal to buy a full city block in Surfers Paradise, losing his $3.95 million deposit.