Council’s sale of the Bruce Bishop car park in Surfers Paradise delayed as talks with top bidder fail

The fate of the Bruce Bishop carpark’s controversial sale can be revealed after the issue split city leaders and fears for its future.

Negotiations with the leading bidder for buying the city’s biggest public asset, the Bruce Bishop car park in Surfers Paradise, have collapsed.

The Bulletin in an earlier report had warned the sale was under a cloud with fears the successful tender would not meet payment deadlines.

A City spokeswoman told the Bulletin: “The City of Gold Coast CEO has today been advised that despite the City’s best efforts the preferred tenderer has withdrawn from negotiations to purchase the Surfers Paradise Transit Centre (Bruce Bishop Car Park) site.

“Council will consider a report on the future of this site early in 2023.”

The Bruce Bishop carpark in Surfers Paradise. Picture: Jerad Williams

The Bulletin understands city councillors late this afternoon were being updated about the contract talks.

The sale of the prime Surfers Paradise site has split councillors.

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

Those councillors in favour of the sale 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.

Sources suggested council had been in negotiations with a Sydney-based consortium.

The failure to secure the contract suggests council will now begin talks with the second and third top rated bidders.

The City is facing a deadline with the sale in terms of the site being redeveloped as a tourism icon for the 2032 Olympic Games because it has potential as a massive integrated resort.

EARLIER:

The sale of one of the city’s biggest public assets is under a cloud with concerns the successful bidder for the Bruce Bishop car park cannot meet payment deadlines.

The Bulletin can reveal the council is becoming increasingly concerned about a Sydney-based buyer not meeting contract requirements for the prime central Surfers Paradise site.

A deposit ensures the sale goes unconditional but talks about meeting those financial deadlines in the next few days will determine whether council moves on and considers other offers.

A council source said the City had the option, if talks collapsed, to restart negotiations with the second and third best tenderers. Council hoped the contract would be settled by Christmas.

“They’re (the selected tender) not meeting their deadlines. We had gone for the top money. The tier two and three tenders have other proposals (we will look at),” the council source said.

The Bruce Bishop carpark in Surfers Paradise. Picture: Jerad Williams.

The Bulletin has been told the City was determined to sell the site but an alternative buyer could spark a fresh look at how the huge Beach Road site redevelopment plays out.

A majority of councillors in August backed the entity recommended as the preferred tenderer and authorised CEO Tim Baker to ensure the chief investment officer executed the contract.

The car park had required $10-12m of upgrade works in recent years and the structure was slowly coming to the end of its 20-to 25-year life expectancy. It was expected to fetch up to $50m with the proceeds going to the City’s Strategic Investment Reserve.

Council documents show the City received a “strong response to the sales and marketing campaign” for the site with nine parties submitting a tender.

Four of five parties short-listed provided a further tender response. They were judged on willingness to pay market value and meet all financial obligations.

Much of the debate about the sale of the Bruce Bishop car park was commercial-in-confidence and held behind closed doors. Pic by Richard Gosling.

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

Those councillors in favour of the sale 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.

The Bulletin on Tuesday asked council a series of questions on the latest sale, whether deadlines had been met and other bidders be considered.

A city spokesman said: “Despite the City’s best efforts contract negotiations between the parties have been protracted and are still ongoing.

“The City is frustrated by these delays and is working with the preferred proponent to have the contract executed by the parties as soon as possible.”

In 2018, council had signed a memorandum of understanding with Far East Consortium and Care Park to buy the carpark for $48m. That deal fell through in August 2020.

After the last vote to sell the site, Councillor Ryan Bayldon-Lumsden, in a Facebook post, said he did not believe the sale was in the best long-term interests of the city.

“This is a large 18,000 square metre site in the heart of Surfers Paradise which will only become scarcer and more attractive for the community over time,” he said.

Bruce Bishop car park.

“I don’t believe such a large block in such a central location is surplus to the city’s needs — when we are a city that supplies carparks, public open-spaces, civic hubs, sporting facilities, event zones, etc.”

Area councillor Darren Taylor, who also opposed the sale, sought a report on future carparking needs in the tourist hub.

The future of the car park has sparked an almost two-decade debate with protests by Surfers Paradise businesses and a probe by the state corruption watchdog.

In 2019 the council was cleared by the Crime and Corruption Commission of several complaints including the handling of the then-controversial planned sale of the carpark.

A year earlier the councillors had moved to sell the carpark for $48m so council could build the HOTA culture precinct without hiking up rates.

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