Glenorchy City Council to reveal DEC sale decision on Tuesday

UPDATED: GLENORCHY City Council has rejected as “totally inadequate” an offer by the Southern Huskies group to purchase the Derwent Entertainment Centre.

A concept picture of what the Derwent Entertainment Centre could look like if the Southern Huskies buy the venue. Picture: SUPPLIED

UPDATED: GLENORCHY City Council has rejected as “totally inadequate” an offer by the Southern Huskies basketball group to purchase the Derwent Entertainment Centre.

In a statement this morning, the council said it had “rejected as totally inadequate an offer by HydraPlay” and will now seek expressions of interest from prospective buyers on the open market.

The expressions of interest process will also be open to HydraPlay, should it choose to make another offer.

HydraPlay is behind Tasmania’s bid for a team in the National Basketball League.

The council announced in July it was putting the DEC on the market.

It is understood it has been valued at about $4 million.

The statement from council annoucing the decision said “the widely-reported $18.6m figure is not the market valuation but a valuation for accounting and depreciation purposes only.”

Mayor Kristie Johnston said the council had unanimously agreed that the HydraPlay offer was well short of what was considered acceptable for such a significant public asset.

“It is in the best interest of the community that we test the open market in trying to attract an acceptable offer,” Alderman Johnston said.

Tasmania's NBL hopes could well be over... believe the GCC has knocked back the offer from @SouthernHuskies consortium to by the DEC. @TheMercurySport @themercurycomau

— Adam Smith (@ajsmiddy) October 29, 2018

Details of the offer, including the proposed purchase price, were being treated as ‘commercial in confidence’ at the request of HydraPlay.

However, the council said it would be pleased, in the interest of transparency, to publicly release the Letter of Offer from HydraPlay dated October 19 if the authors provide their consent.

Alderman Johnston said while the price was clearly important, it would not be the only consideration in assessing any offer to purchase the DEC through the expressions of interest process.

“Council also wants to be assured that any future owner is prepared to invest in and develop the DEC for the benefit of the community through the provision of better facilities and increased entertainment options,” Alderman Johnston said.

“The creation of job opportunities will be a further determinant as well as the credentials of the proposed purchaser to deliver on purchase commitments.

“Council has made it clear that it remains resolute in its determination to ensure that if the facility is sold, it is at a price that is both fair and reasonable and represents genuine value to the community.”

EARLIER:

THE Southern Huskies will learn on Tuesday morning if their bid to buy the Derwent Entertainment Centre at Glenorchy has progressed to the next phase.

The Glenorchy City Council met in a closed session on Monday night to consider a formal offer from the Hydraplay consortium.

Mayor Kristie Johnston said the council would notify the consortium, led by former basketballer Justin Hickey and his business partner Mike Sutton, of the outcome first thing on Tuesday before releasing a statement to the public.

MORE:

COUNCIL VOTES TO CLEAR THE DEC

A GRAND STAND FOR HUSKIES’ DEC BID

DEC SALE DEAL MOVES ANOTHER STEP CLOSER

COUNCIL PONDERS HUSKIES’ DEC OFFER

Alderman Johnston said the council had requested the consortium table its best offer for Hobart’s premier entertainment venue on Montrose Bay.

She said the reason the matter was discussed during a closed session was because the offer put forward was commercial in confidence.

Hydraplay is behind Tasmania’s bid for a team in the National Basketball League and the only interested bidder in the DEC.

The council announced in July it was putting the DEC on the market and had it valued at $18.6 million.