State Government to put its land to tender next to Tate’s Surfers site

THE State Government is about to sell its land parcel on the Surfers Paradise Bowls Club site where Mayor Tom Tate and his business partners want to build a super tower.

Gold Coast Mayor Tom Tate and his business partner Kelvin Gersbach play a waiting game after getting council approval to develop a super tower on the Surfers Paradise Bowls Club site. Pic Tim Marsden

THE State Government is about to sell off a small parcel of land that is part of the Surfers Paradise Bowls Club site where Mayor Tom Tate and his business partners want to build a super tower.

Two years ago the former LNP Government faced a political storm after reports emerged about it selling its holding for $1 million.

The portion of just over 800sq m forms part of the ground-level car park of the club with a section of one of the bowling greens above it.

Cr Tate and his business partner, Kelvin Gersbach, bought the Surfers Paradise Bowls Club headquarters and most of the greens in 2005.

Gold Coast Mayor Tom Tate and his business partner Kelvin Gersbach play a waiting game after getting council approval to develop a super tower on the Surfers Paradise Bowls Club site. Pic Tim Marsden

Dr Alex Douglas, as the MP for Gaven, wrote to the then-Deputy Premier Jeff Seeney seeking a halt to the sale, arguing the process was not transparent and the government’s land was being sold for a third of its value.

Ray White Gold Coast Commercial on the weekend advertised the 811sq m site in Peninsular Drive for sale by tender, with applications to close on March 3.

Property records show the Department of Natural Resources obtained the parcel of land in 2001, and in the same year the city council acquired a much larger 987sq m block fronting Remembrance Drive and backing on to the Nerang River.

The bowls club was $1.4 million in debt in 2005 and the Tate consortium bought the large share of the site for $1.43 million in what was later described as a “crackerjack” deal.

The Surfers Paradise Bowls Club greens after the club closed it doors.

Plans by the Tate consortium for a $300-million, 60-level tower were approved by the council in 2013 but nothing has happened since as talks over state and council holdings on the site stalled.

Cr Tate declined to talk about the project, referring the Bulletin to Mr Gersbach, who negotiated the development application.

Mr Gersbach yesterday admitted their company, Crestden Pty Ltd, was taking a “sit back and wait approach”.

“The State Government has got it (their land) for sale,” Mr Gersbach said.

“We don’t know what they want for it. We haven’t seen the tender document yet.

“I don’t know whether there is a reserve on it or not. Whoever buys it has to be able to do something with it.”

Dr Alex Douglas raised concerns about the Surfers Paradise Bowls Club deal when the MP for Gaven, pictured here speaking at Parliament. Picture: Darren England.

The development application by Crestden Pty Ltd has a four-year approval from council and an extension could be granted, Mr Gersbach said.

“There is no stress for us. We’re sitting on it. We will see what happens with the review of that land,” he said.

The Bulletin understands that as part of the development approval, council agreed to sell its land holding at a certain valuation to Crestden Pty Ltd.

Mr Gersbach said Crestden Pty Ltd did not need the council or the State Government land which was a car park.

“We’re in no hurry. We can sit back and wait. We already own 60 per cent of it. It’s not integral,” Mr Gersbach said.

Commercial property analysts regard it as “unusual” for such a parcel of land to go to public tender when in the normal course it would be offered to the neighbouring land owners.

A report prepared by Steven King for Ray White Commercial Gold Coast said the site had an unimproved capital value of $1.4 million.

The current tenant, the body corporate for the Surfers Plaza Resort, had a lease on the car park until June next year, the report said.

“Overall, we find that this landholding present excellent development opportunities for a wide range of business and commercial uses, residential purposes above ground or podium levels, and retail uses at ground floor,” the report added.

The property overview does not mention the Tate group’s plan for its Waterglow tower which is to be a mix of 398 units and 216 motel rooms with 658 car spaces.