Derwent deal worth a shot

AT face value, the proposal to take the loss-making Derwent Entertainment Centre off the hands of the cash-strapped Glenorchy City Council appears a solid one.

The Derwent Entertainment Centre at Elwick, Glenorchy.

AT face value, the proposal to take the loss-making Derwent Entertainment Centre (DEC) off the hands of the cash-strapped Glenorchy City Council appears a solid one.

It would mean ratepayers were no longer saddled with an asset that is an annual million-dollar drag on their council’s bottom line, and that the new operator would set about not only upgrading the facility itself but also transforming the prime waterfront location into something all of Hobart could be proud of.

The fact remains, however, that this would be an example of a publicly owned asset being handed over on what we assume would be generous financial terms to a private operator. And so nobody should rush to make a decision.

The special meeting of the Glenorchy City Council tonight should properly consider the proposal before making a call.

It’s also a good thing that the council will vote separately on the sale of the DEC and the associated proposal to also hand over some of the adjacent land — which Mayor Kristie Johnston says would include the Brooker Highway frontage and the car parks, but not “the remainder of Wilkinsons Point or … or any public foreshore”.

The proposed new owner is a consortium led by Hydraplay Pty Ltd, one of the companies owned by former Tassie-bred professional basketballer Justin Hickey.

Hydraplay’s proposal is to use the land it wants as part of the deal to construct a hotel and a range of other entertainment facilities such as restaurants and cafes — essentially to breathe life into what is today a totally under-utilised location with a bucketload of potential.

It sounds fantastic. But we must remember that Mr Hickey operates a business. Businesses operate to make money. And the masterplan here sounds like a potential money-spinner.

That’s not to say it’s a bad idea — it’s just to point out the reality of the situation, and ensure the commercial side of the deal is something the Glenorchy Council considers as part of its deliberations.

We should also remember the Hodgman Government pledged during the recent state election campaign to spend $10 million designing, planning and constructing a multi-sports indoor facility in Glenorchy — likely adjacent to the DEC.

One would think the potential new owners are operating under the assumption that the promise stands.

Anyway, if it all stacks up commercially and politically — with all those realities considered and the ratepayers of Glenorchy actually getting a good deal for the DEC — then the next stage of the proposal would likely have the Mercury’s full support.

It is ridiculous that cricket remains the only sport to have an elite-level team based in Tasmania. As a state, we deserve more than that.

And the bid for a Hobart NBL licence as part of this takeover is also something that makes a lot of sense, beyond just being something that would be great for the state. Basketball teams are a perfect fit for smaller cities.

Not only is their playing roster smaller than the football codes, but a sold-out crowd can be a few thousand rather than up to 20,000 for home games.

If all goes as planned with this proposal, Tasmania would have its own NBL team from the summer of 2019-20. That’s pretty exciting.