Exclusive: ratepayers miss out on $5 million payday on Surfers Paradise bowls site deal

The council is being accused of a “fire sale” on land ratepayers owned at one of the city’s most controversial and prime development sites.

The council is being accused of a “fire sale” on land ratepayers owned at one of the city’s most controversial and prime development sites.

Real estate agents in promoting the sale of the Surfers Paradise Bowls Club site had described the property as an “exceptional development opportunity”.

The 1833sqm holding was “in the city’s tourism heart within immediate reach of Surfers Paradise beach, cafes, restaurants, bus terminal and the Gold Coast light rail”.

It was expected to fetch at least $5m. But the Bulletin can reveal council got $1,785,000.

The Surfers Paradise Bowls Club site land owned by council, which has been sold. It is a prime site.

Former councillor Eddy Sarroff in an email sent to all councillors and council CEO Tim Baker on Wednesday asked for a “full explanation” to be given at the next council meeting.

“I believe heads should roll over this fire sale, none of what has occurred passes the pub test and council in my view has demonstrated that it has no brain nor a heart,” Mr Sarroff said.

An experienced real estate business owner and former council finance committee chair, Mr Sarroff estimates the City’s land has sold for one sixth of the rate Mayor Tom Tate expected to achieve for his portion of the remaining bowls club site.

Mr Tate during conflict of interest declarations at a full council meeting earlier this month revealed he was close to finalising a $30m sale with his business partner.

Before entering council, Mr Tate and a business partner obtained the Surfers Paradise Bowls Club headquarters in the Surfers Plaza Resort for $1.43 million and later its adjoining greens for $700,000 after the club faced a $1 million debt.

In July last year residents from Surfers Plaza stood outside council chambers in a final bid to save about 150 carparks — they are part of one car park owned by several parties.

Surfers Plaza residents at a protest outside the Evandale Chambers. Eddy Sarroff spoke to the crowd. Picture: Glenn Hampson.

Some angry residents held up signs saying “Sack Tate” and chanted “Save our car park”.

Mr Sarroff who was at the rally said council was not obliged to “fire sell the land”, and should have known the Mayors’ lots were highlighted as achieving a premium.

“It was acknowledged by Cr (Gary) Baildon several years ago that the land was worth $5 million dollars and Cr (Darren) Taylor has advised the Plaza body corporate at a meeting which I attended that the land was also valued at $5 million,” Mr Sarroff said.

The council-owned land on the Surfers Paradise Bowls Club site which has been sold.

The City’s parcel of land contained 49 car parks. Earlier officer reports warned a tender was “clouded” by “the existence of the car park structure” spanning three privately owned lots.

Officers in August 2019 suggested “a patient approach to disposal” was warranted.

A council spokesperson said the decision to dispose of the property by public tender was resolved by council in November 2021.

“Subsequent to the public tender a contract of sale was executed with the preferred tenderer on 17 August 2022. The settlement of that contract was effected on 15 February 2023,” the spokesperson said.

The prime location for the Surfers Paradise Bowls Club site land owned and sold by the council.

The spokesperson said the price achieved was “the highest of the tenders received”.

Council had resolved in 2016 that the site was surplus and undertook a campaign to sell by public tender, the spokesperson said.

“The City failed to sell the site as a consequence of the subsequent tender. In 2021, council reaffirmed the intent of the 2016 resolution and undertook to dispose of site,” the spokesperson said.

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