Tasmania back in the NBL with big deal to change the northern suburbs

Tasmania’s back in the NBL and while the deal will have big economic benefits, it doesn’t come cheap.

THE redevelopment of the Derwent Entertainment Centre and the Wilkinsons Point Precinct will “change the face of Glenorchy forever,” Premier Peter Gutwein says.

But it comes with a hefty price tag.

As revealed by the Mercury, the State Government and the Glenorchy City Council were joined by NBL owner Larry Kestelman to announce Tasmania’s return to the nation’s premier basketball competition.

The DEC and Wilkinsons Point was sold by the council to the government for $8 million earlier on Friday to start proceedings.

As part of the deal the DEC will receive a $40 million upgrade and the building of a $20 million four-court indoor multisports facility via the taxpayer.

The government will also be the yet-to-be-named team’s major sponsor to the tune of $2 million a year for the first five years with the option to extend to 10 years.

In return, Wilkinsons Point will eventually be onsold to Mr Kestelman’s LK Group, who will then start on a $150 million shopping, hotel and restaurant precinct that must be substantially commenced within five years of receiving building approvals.

Artists’ impression for the Derwent Entertainment Centre for games with the NBL. Picture: SUPPLIED

Mr Gutwein said the deal is expected to create nearly 1200 jobs and generate $100 million worth of direct economic activity.

“It will change the face of Glenorchy forever,” Mr Gutwein said.

“Importantly what it will do during the construction phase is to provide economic impact for our community in terms of nearly 1200 new jobs over time as the construction commences.

“This will mean jobs, it will mean opportunities and importantly what it will do is put Tasmania on the national stage again playing in the NBL.”

The redevelopment of the DEC will start in August and have just 12 months to be completed for Tasmania to compete in the 2021-22 season.

Funding for the redevelopment will be thrashed out between the state and federal governments as part of the City Deal, Mr Gutwein said.

“The DEC will become a contemporary entertainment and sporting venue,” he said.

“What this will do is ensure this is upgraded and service this community for decades to come.”

Mr Kestelman described the negotiations as “tough” but was excited by the opportunity and said now the hard work begins to get the club fully operational.

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Glenorchy Mayor Kristie Johnston said this announcement was just one of a number of developments in the municipality.

“This is part of our billion-dollar pipeline worth of private development occurring in Glenorchy so it is an exciting future and the council is very proud to facilitate this exciting development,” Cr Johnston said.

NBL owner and executive chairman Larry Kestelman, Glenorchy Mayor Kristie Johnston and Tasmanian Premier Peter Gutwein today announced that the leagues 10th team would be based in Tasmania. Picture: ZAK SIMMONDS

Opposition sports spokesman David O’Byrne described the deal as an economic win and a positive commitment to Tasmania.

“Isn’t it wonderful what you can achieve with a national code that wants to come here and put Tasmania on the national and international stage?” Mr O’Byrne said.

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Mr Gutwein defended the outlay against critics who believe governments should be trying to solve the health and housing crisis, not funding professional sports teams.

“I’ve always said the best way to get money into health or education or to look after the most vulnerable is to have a strong economy,” he said.

“If we’ve got a strong economy we are generating the revenues that we need to invest record amounts into those services.

“This development and the Wilkinsons Point development will not only create 1200 jobs but it will generate more than $100 million worth of direct economic activity into our broader economy.

“It will actually assist us to provide additional funding into those core service areas.”

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