Offer of $50m made for Bruce Bishop car park

An offer worth tens of millions was made to council to buy the Bruce Bishop car park in Surfers Paradise. FULL DETAILS

An offer of $50 million was made to council to buy the Bruce Bishop car park in Surfers Paradise, it can be revealed.

Councillors at a full council meeting on Monday will vote on whether the city retains ownership and maintenance of the car park or it is sold and becomes a super tower resort.

An industry source said: “It (the earlier offer) confirms market expectations that its value is at least $50 million. That reflects an earlier purchasers’ (offer) in 2018 who offered $48 million.”

Documents obtained by the Bulletin show an offer to the council in November 2021, when lawyers on behalf of businessmen wrote to the City.

The $50 million “purchase price” was subject to conditions and would be in three instalments, starting with a deposit followed by final payment once building approval was given.

Businessmen wanted to buy the existing bus terminal building, Bruce Bishop carpark and the parkland above the facility.

Lawyers confirmed that the sole purpose for buying the prime Coast site was to build an “integrated resort development”.

A marketing drawing showing three residential super towers as a potential development option at the Bruce Bishop car park site in Surfers Paradise.

In a surprise move, which would have been welcomed by local retailers and residents, the City was told there was a guarantee the proposed development would include free public car parking “for the life of the proposed building”.

The Bulletin understands council later kicked off an open tender process. But there was no requirement on bidders to provide public parking.

The latest tender process has been dogged by integrity issues with negotiations stalling in July last year due to a “regulatory and probity” issues.

In December talks with the leading bidder collapsed after the Sydney-based consortium did not meet payment deadlines. The City alerted the other four top bidders.

Officers at a governance committee meeting last week advised councillors of these options:

* ascertain with industry the best strategic use for the site and go to the market for feedback.

* do nothing and retain it as a car park.

* deal now with the other remaining parties seeking to buy it.

* run a new tender process to see if the market has changed.

The first two options offered long term economic and social benefits but a maintenance liability, while securing another deal would see “the highest cash return”.

Councillors did a U-turn on the decision to sell. The vote was 5-3 to save the car park.

The Bruce Bishop car park in Surfers Paradise.

Officers in presenting a new report said the car park in 2022 was operating at 37 per cent capacity. But the expectations were demand would exceed supply by 2031.

Surfers Paradise-based councillor Darren Taylor said the new report showed the car park was “breaking even” and making profits going forward.

“It could be investigated and get better returns if you maintain it,” he said.

Cr Taylor at committee was backed by councillors Ryan Bayldon-Lumsden, Daphne McDonald, Brooke Patterson along with chair William Owen-Jones.

Those opposed were Mark Hammel, Donna Gates and Pauline Young.

Cr Cameron Caldwell, who attended the committee as an observer and could not vote, supports the facility not being sold.

In late 2021, a majority of councillors had voted to sell the facility after a report showed more than $12m has been spent since 2014 on rectifying structural defects.

It would cost up to $84m to replace the existing structure on a “like-for-like basis”.

The final vote of councillors was split 8-6 with Mayor Tom Tate absent. As part-owner of land at the nearby Surfers Paradise Bowls Club site, he voluntarily decided not to participate.

Those councillors in favour of the sale then were Mark Hammel, William Owen-Jones, Donna Gates, Brooke Patterson, Bob La Castra, Glenn Tozer, Pauline Young and Gail O’Neill.

Councillors who voted against were Cameron Caldwell, Peter Young, Ryan Bayldon-Lumsden, Darren Taylor, Hermann Vorster and Daphne McDonald.

EARLIER: SURPRISE U-TURN IN CARPARK SALE

Gold Coast City Council has taken a shock U-turn on selling the city’s biggest public asset with a majority of councillors wanting to save the Bruce Bishop Carpark.

New data provided to councillors showed the Surfers Paradise car park was making a profit.

Councillors at a governance committee meeting on Wednesday were told the car park in 2022 was operating at 37 per cent capacity.

But the expectations were demand would exceed supply by 2031.

Surfers Paradise-based councillor Darren Taylor who strongly supported the car park remaining said a new report showed it was “breaking even” and making profits going forward.

“It could be investigated and get better returns if you maintain it,” he said.

About 600 spaces were being used each day with between 800 to 900 remaining vacant, officers said.

Cr Ryan Bayldon-Lumsden told the meeting: “It’s returning a profit. It’s a good thing.”

He said the last report to councillors showed the public asset was operating at a loss but the latest report now “clearly indicated it was making a profit”.

Cr Taylor said parking charges had increased from $5 to $10 and there was more use of the facility post-Covid.

Cr Taylor sought support for terminating the current sale process and seeking $3.4 million to maintain and upgrade the facility.

“We need to ensure we keep this asset and get the best return from it,” he said.

“We are talking Surfers Paradise. We are talking the centre of our city. We are talking a major asset.”

SALE OF BRUCE BISHOP CAR PARK IN SURFERS PARADISE IN DOUBT

He was backed by councillors Daphne McDonald, Brooke Patterson, Ryan Bayldon-Lumsden along with chair William Owen-Jones.

Those opposed were Mark Hammel, Donna Gates and Pauline Young.

Cr Cameron Caldwell, who attended the committee as an observer and could not vote, supports the facility not being sold. A vote of all councillors will occur at full council on Monday.

The Bulletin in a report last month detailed how three super tower towers and a commercial centre can be built on the site, if council is successful in selling its biggest public asset.

But in a twist, those companies or consortiums bidding for the tender were not required or being encouraged to create any public carparking.

Cr William Owen-Jones – as governance chair kept the debate in open session. Picture: by Richard Gosling.

Bruce Bishop Carpark currently provides 1600 spaces and the potential loss of all of those public parks in Surfers Paradise will spark a business backlash in the tourism heart.

Documents obtained show “marketing information” for the site which revealed three residential towers fronting Remembrance Drive, all above 40 storeys, and a smaller commercial building.

Council restrictions on earlier sales agreements, including keeping public carparking impacted previous bids to attract buyers. A $48m deal collapsed in 2018.

SUPER TOWER PLANS FOR BRUCE BISHOP CAR PARK SURFERS SITE

In the latest sale, the successful bidder failed to meet payment deadlines in December which had put the process under review, leaving four other conforming tenders in the dark.

Councillors have been divided on the sale and way forward on the 18,000sq m site which could cost $84m to fix but fetch $50m.

The tender process since July last year has been dogged by “integrity issues”. Area councillor Darren Taylor had called for a review.

Council documents confirm there was a top five list of tenders and delays would impact timelines for any future works, leaving a “bomb site” before the 2032 Olympics.

On the “integrity issue”, detailed in a report in this newspaper in December, no information has been made public, only that council had conducted the process in accordance with the conditions of tender and “this has been confirmed by the probity Adviser”.

The Bulletin earlier asked council to confirm “a regulatory and probity oversight” occurred in the lead-up to nominating the preferred tender, explain what it was and how it was resolved.

“The City of Gold Coast engaged an external probity Adviser for the sale of Bruce Bishop Car Park,” a council spokesperson said.

“Their advice was that the process should be referred to council for decision. The matter was subsequently referred to council which delayed the process by two to three weeks and tenderers were advised of this delay.”

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