Glenorchy City Council to push ahead with plans to sell Derwent Entertainment Centre
GLENORCHY City Council will put the cash-draining Derwent Entertainment Centre on the market after a unanimous vote during a fiery meeting.
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GLENORCHY City Council will put the cash-draining Derwent Entertainment Centre on the market.
In a fiery council meeting on Monday night that at times threatened to spiral out of control, aldermen voted unanimously to look to offload the asset.
A packed gallery repeatedly interjected over Mayor Kristie Johnston to voice their disapproval of the plan in a lively public question period scheduled to take 15 minutes but which lasted more than an hour.
CONSORTIUM BEHIND PUSH TO BUY DEC
EDITORIAL: DERWENT DEAL WORTH A SHOT
In scenes that resembled more of a debate, the council was told on multiple occasions they had lost the faith of the community and one local pleaded for them to “use your head”.
The vote means the council’s general manager can pursue opportunities to sell or lease the entertainment centre following a 14-day period where objectors can lodge an appeal to the Resource Management and Planning Tribunal.
Ald Johnston stressed council can still decide not to sell if they don’t like the offers they receive.
“A later meeting will determine the matter of when, who to, and on what terms a sale would be agreed to,” she said.
“It’s been well known the DEC has been a liability for council, it’s a regional centre the council operates for the benefit of the state and it has suffered some serious losses financially.
“It’s about trying to get a better outcome for the community.”
The Hydraplay consortium behind Tasmania’s push for a team in the National Basketball League remains the only interested buyer and looks set to secure the DEC if council pushes ahead with the sale.
Hydraplay, led by entrepreneur and former basketballer Justin Hickey, has pledged between $80 million and $90 million to create a sports and entertainment precinct on the site.
The plan includes a $3 million to $4 million upgrade of the DEC, as well as hotel and cafes and would be the largest investment in Glenorchy since Mona.
“We are pleased the Glenorchy City Council has come to a prudent decision to dispose of an asset they received for free and look forward to our discussions with the State Government,” Mr Hickey told the Mercury.
The DEC has been a burden on ratepayers in recent times — it has failed to perform to its budgeted expectation in each of the past four years and has turned a profit only once.
The council reported an operational loss for the centre of $145,000 in the last financial year, with depreciation ($869,000) and maintenance bringing the council’s total cost of running the building to almost $1.1 million.
Deputy Mayor Matt Stevenson said the centre had been a “drain on the purse of council ever since it came into their hands”.
“If the DEC is sold it will remain an entertainment centre … the public will retain access to the Wilkinsons Point foreshore,” he said.
Council received seven objections and a petition with 418 signatures against the plan to dispose of the entertainment complex.
Council currently values the DEC at $18.6 million.
jack.paynter@news.com.au
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