Mayor Tom Tate puts foot down on land sell-off as Gold Coast council spends up on solving city’s transport woes

MAYOR Tom Tate says he will not borrow money in the first term of the new council and pay off bad debt by asset sales which target prime land at Robina and a key Southport CBD car park.

Site of the new Gold Coast City Council Office Hub in Robina - with Robina Hospital in the background

A PRIME block of land and a major carpark may go under the hammer as Mayor Tom Tate vows to sell off city assets rather than borrow to pay off council debts.

Cr Tate has also vowed to keep rate rises to no more than the Consumer Price Index which will put pressure on the council to find alternative sources of funding for major projects such as his dream of a $70m offshore cruise boat terminal.

The council is also committed to funding the $37.5 million first stage of the city’s new cultural centre ahead of the 2018 Commonwealth Games.

A budget juggling act will be required because the major priority in the lead-up to the Games is to help the Federal and State governments reduce traffic congestion in the city.

Ahead of pre-budget talks with his new councillors, Cr Tate announced transport would be the main priority.

“It’s going to be $90 million per year,” he said.

“We’re not going to muck around here.

“You get transport right and the lifestyle of the Gold Coast is protected.”

Much of the work will involve widening roads and footpaths, along with improving bikeways to get vehicles off the road.

A major outlay also will be needed to fix the Chevron Island blackspot, with Cr Tate admitting either a new bridge or replacement of an existing bridge was necessary to get traffic on and off the island.

Mayor Tom Tate and the City of Gold Coast budget announcement. Picture: John Gass

The mayor said he wanted to reduce council debt and estimated the new administration could shave another $50 million in the next 12 months.

In an address to seniors during the election campaign last month, Cr Tate promised “our council rates should be what it is, pegged to CPI or less”.

He yesterday told the Gold Coast Bulletin : “It will be around the CPI – it would I suppose be around a two to three per cent increase.”

The mayor also revealed his plan to keep a lid on borrowings, with the council’s annual report showing the city owed $918 million, of which $768 million related to loans drawn from the Queensland Treasury Corporation.

The site of where the former Gold Coast City Council planned its “Taj Mahal” administration building in Robina — looking down Laver Dr with the council site on the left.

The council borrowed $38.5 million during 2014-15 which was down from $62.9 million in 2013-14.

“I don’t want to borrow any more,” he said.

“The other funding solution is to sell off surplus land.”

Councillors in the previous Ron Clarke administration had voted to spend up to $400 million on the so-called Taj Mahal administration centre, on a block of land in Laver Drive, bought for $10 million in 2009.

The ageing Mal Burke car park in Southport will be targeted in council asset sales.

“While I’m mayor we’re not building that,” Cr Tate said.

“I want to sell that (land).

“That money can come toward the cultural precinct.

“What happened is we bought buildings across the road (from Evandale) now from the receiver.

“The replacement cost of those two buildings was $90 million.

“We got it for $32.5 million – done, completed – we’ve moved in there.

“It’s land that we don’t need.”

The Mayor said the Mal Burke car park in Southport could also be put up for sale.

“I think we should look at the idea of the Mal Burke car park,” he said.

“We are going to pay back bad debts.

“We are doing budget savings and selling surplus land.

“It’s all dormant assets.”

The debate about asset sales arose in 2010 but was opposed by then-councillor and finance committee chairman, Eddy Sarroff.

Three years later under the first Tate administration, council officers had identified at least $30 million of surplus property assets.

The debate this time around will be not about selling but when to sell, with the market likely to strengthen in the lead-up to the Games.