Gold Coast mayor’s company buys State land for $2.05m for private high-rise development on former bowls site

MAYOR Tom Tate and partners are on track to build a Surfers Paradise high-rise after snaring a key component of their planned development site from the State Government.

artist impression of the Waterglow development backed by Tom Tate for upload

MAYOR Tom Tate and partners are on track to build a Surfers Paradise high-rise after snaring a key component of their planned development site from the State Government.

They are paying $2.05 million for 811sqm in Peninsular Drive that takes in part of the ground-level carpark of the defunct Surfers Paradise Bowls Club.

Artists impression of Waterglow tower in Surfers Paradise

Cr Tate, with hotel industry figure Kelvin Gersbach and accountant Barry Pinkstone, now hopes to purchase another 1833sqm owned by the council he leads.

The group, which signed for the land on March 6 — three days after tenders for it closed — already owns 2644sqm of adjoining bowls club land.

Two years ago the Tate company gained the nod for Waterglow, a 56-level apartment tower, an approval that took in their land and the State Government and city council sites.

In the Media Club Mayoral Candidate debate last week, Cr Tate told ratepayers he would not make a pre-election pledge to sell his interest in the site and did not reveal that interest had expanded until after Saturday’s election.

Mayor Tom Tate and his wife Ruth.

Yesterday he was defensive when asked about his involvement in negotiating the deal, saying he was a “minority shareholder” whose involvement in the sale negotiation was, “Nil, no, none”.

Company searches showed Cr Tate is a director of at least five companies related to the development and its partners.

A council spokesman yesterday said the full council would decide whether the last piece of the Waterglow site would be placed on the open market.

Kelvin Gersbach.

“(The possible sale) will be subject to a report to council if/when an application to purchase is further advanced by the adjoining owner,” a statement from the media department said.

“Full council would need to determine that the site is for sale ... there is no current valuation of the land for the purposes of disposal.”

Colliers International director of investment James Crawford said it was difficult to judge the sale, worth $2527.74/sqm, against others in the suburb.

James Crawford from Colliers International.

“But it seems on face value to be a good price for the property,” he said.

LJ Hooker Surfers Paradise principal of project Tony Trpeski agreed the price per square metre was “healthy” for the suburb.

If the council agrees to sell the ratepayer-owned section of land at the same value, it would reap $4.6 million.

Mr Gersbach yesterday said a meeting would be held with the council this week over the purchase of its site.

“We are hoping to buy the council land but our plans are not dependent on it,” he said.

“The price we are asked to pay has to be a financially viable one for us.”

The State Government land, acquired via the Department of Natural Resources in 2001, was put to tender last month through Steven King, of Ray White Commercial.

Mr Gersbach said he and his partners initially offered $1.5 million but they were told to ‘revisit’ their offer and moved it to $2.05 million.

Mr King yesterday said there had been “a fair bit of interest” in the property but could not say anything else as the State Government had asked him not to.

The deal settles on April 6.