Gasworks site deal reportedly on hold as ‘disconnect’ between Toowoomba Regional Council’s desired outcomes and developers’ plans

A major developer was reportedly interested in snapping up one of the last major vacant sites in the Toowoomba CBD. But the deal is apparently on hold, and council “challenges” are believed to be behind it.

Mayor Paul Antonio; the old gasworks site; Colliers International's Dan Dwan.

One of the last remaining vacant sites in the Toowoomba CBD looks set to remain unused for even longer, with the agent in charge saying the council’s desired outcomes for the land had created “challenges” for potential buyers.

The old gasworks site on Neil Street was reportedly under contract with a major developer in October, with a deal expected shortly for the one-hectare parcel.

But the plan is now believed to be on hold as the party weighs up options on what is commercially viable.

Colliers International managing director Dan Dwan neither confirmed nor denied the contract was in limbo, but acknowledged issues had surfaced due to the council and the State Government’s desire to see a mixed-use development at the site, including residential offerings.

The gasworks is part of the Railway Parklands priority development area, a 50-hectare precinct covered by a special state government planning framework and administered by the council.

In contrast, the interested party was reportedly looking at a more retail-focused development based around a national company.

Mr Dwan said the council’s vision was not financially viable right now, especially considering the current demand for units in Toowoomba.

“There’s a disconnect at the present time between council and Economic Development Queensland’s desire for that site, and where market interests currently reside,” he said.

“If they had their perfect picture, it would be a mixed use site with multistorey residential.

“What we’re seeing is there’s a gap between the affordability of completed products with the cost of development and competing with price point.

“If you as a buyer want to spend $600-$700,000 on a unit, you could just buy a house here.”

The PDA was devised to “streamline” the approval process for key development types like units, office accommodation and retail spaces.

Toowoomba mayor Paul Antonio said the council wanted to see a development at the gasworks that was closer to the revamp of the Knights Laundry building next door.

“Ideally, council would like to see any future development on the gasworks site and surrounding area complement the surrounding developments to create a strong identity for the area,” he said.

“Given the businesses already in this area, and the economic activity currently taking place in the Toowoomba region, council believes this is a realistic goal for this community.

“The area offers an opportunity for an urban village precinct, including mixed-use development, inner-city living and recreation outcomes.”