Heinemann Rd sports hub costs estimated to blow out to $200m

Ratepayers, who by some estimates, paid double market value for land to build a sports hub, now face an estimated $200 million to develop the site and manage flooding.

Heinemann Rd, Mount Cotton, where the first stage of the sports hub will include bike facilities. Redland ratepayers, who by some estimates, paid double market value for the land to build a sports hub, now face having to pay $200 million to build the complex, according to estimates from council officers.

A southside council’s plans for a sports hub have come under scrutiny by residents and a former councillor after estimates of a massive $200 million cost blowout and claims ratepayers were slugged nearly double the market price for the land, even though it floods.

Redland City Council paid $7.3 million for 159ha of land on Heinemann Rd at Mount Cotton in 2017, despite two independent valuations for less.

Heinemann Rd, Mount Cotton, where the first stage of the sports hub will include bike facilities. Redland ratepayers, who by some estimates, paid double market value for land to build a sports hub, now face an estimated $200 million to build on the site, which partly floods.

The council said the site was only partly subject to flooding and its location, size, topography and potential for nature-based recreation made it appropriate for the new sports hub.

It was half owned by Betty Goleby, wife of former state Resources Minister John Goleby, who also sold a family home at Mount Cotton to mayor Karen Williams’ family.

Karen Williams' family’s Rainforest Gardens at Mount Cotton, was once owned by Betty Goleby.

An independent valuation for the Heinemann Rd site requested by the council came in at $6.55 million, while a second, by local real estate agent Gordon Whicher, was for $3.5 million and a third was at $6.68 million. None included the goods and services tax which is an additional 10 per cent. The eventual total paid was $7.34 million, which included the tax.

In a 13-page report written in 2019, Mr Whicher compared the Heinemann Rd site to a similar, nearby 282 hectare property in Kidd St, Redland Bay.

He said the Heinemann Rd land was 56 per cent smaller than the comparison site and yet was sold for a 154 per cent premium.

“Substantial operational works will be required to tend to the natural watercourse overflow,” he wrote.

“In closing, I cannot support the purchase price the Redland City Council have acquired the property for.

“At best, I appraise the value of the property in the market at the time of purchase at $3.5 million. Factoring in the subjective nature of community and social benefits of the proposed use, $4 million at a premium.”

An independent valuation for the Heinemann Rd property was for $3.5 million but Redland City council paid $7.3 million.

Last week, council officers estimated a rise in costs of up to $200 million to develop the land and build three club houses, 16 sporting fields and BMX tracks.

Original costings had been around $65 million but drainage, earthworks and road upgrades contributed to the rise in estimated expenses.

Redland council said construction of the first stage was planned to start this year but future stages would depend on state and federal funding.

Stage 1, which will include a bike precinct, will be partly funded by $4.5 million from a joint state-council “stimulus package”.

Already $6 million has been spent on planning and designing the sports complex along with $100,000 from the state government.

Despite the officers’ estimated rise in costs to $200 million, the council said it would not move the Redlands Coast Regional Sport and Recreation Precinct to land on nearby Woodlands Dr, even though part of the site could not be used as it flooded and was “natural habitat”.

Last month, residents in South Thornlands and Sheldon were shocked to receive emails informing them the council wanted to rezone 900 hectares of land in their neighbourhood for another recreational precinct, industrial estate and housing.

A coloured map of South Thornlands showing where Redland City Council plans to rezone, with the blue area earmarked for an education, training and recreation precinct.

The area, which includes Woodlands Dr, Springacre Rd, Taylor Rd, Boundary Rd, Duncan Rd and Mount Cotton Rd, is currently zoned rural non-urban, prohibiting industrial, commercial and housing developments.

But the council said South Thornlands land was not part of the proposed sports hub.

“However, as part of its expected responsibilities, council continues to look at land across the city for current and future infrastructure needs,” the council said.

“It should be noted that the preferred future land use map, (ABOVE) submitted to the State for State Interest Review, does not propose rezoning of the Education, Training and Tourism Precinct.”

Former Redland City councillor Toni Bowler said ratepayers were concerned they would have to pay to build a second sports precinct in South Thornlands after already spending $7 million on land at Heinemann Rd.

Williams Place, which is one of the new roads being built at southern Thornlands.

“I question why the council bought the land at Heinemann Rd when it had so many constraints for a sports complex and now it will end up costing ratepayers hundreds of millions of dollars,” she said.

“The land was valued at the time of the sale at about $3.5 million but the council, through the Redland Investment Corporation, ended up buying it for twice that amount.

“It is also too small for the sports complex because some of the land is zoned for environmental purposes and cannot be touched and the rest floods and cannot be used without massive earthworks.

“Now we are being told they want to rezone land in Taylor Rd for the second part of the recreational and sports precinct.

“Bad decisions continue, expensive planning schemes are being ignored and the community has had enough because there is no infrastructure to go with these massive developments.”

The council said the land’s rural zoning was currently being reviewed to change the northern section from rural to recreation and open space.

“The zoning of the remainder of the site is not proposed to change,” the council said.

“This remaining part of the site is heavily vegetated … however, with detailed planning, offers some opportunities for low-key outdoor recreation (sic) activities such as walking, cycling, and horse riding.”

The state government is currently assessing the council’s rezoning request.

“Once the state government review is finalised, council will look to publicly advertise the amendment, allowing members of the public to have their say.”

Originally published as Heinemann Rd sports hub costs estimated to blow out to $200m