BACK IN THE GAME
$60M BASKETBALL DEAL FOR DEC
TASMANIA is set to return to the big league of Australian basketball with a deal all-but signed with NBL chief Larry Kestelman.
Final details of the deal are being negotiated and include a $40 million taxpayer-funded upgrade of the ageing Derwent Entertainment Centre and a new $20 million indoor multi-sport arena next door.
In return Tasmania would rejoin the NBL from 2021 and
Mr Kestelman would develop a $200 million shopping, retail and hotel precinct at Wilkinsons Point.
The deal involves funding from the state and federal governments and the Glenorchy City Council and ownership of the DEC and new muti-sport arena would remain in public hands.
THE deal on the Derwent Entertainment Centre is almost done, with a $40 million taxpayer-funded upgrade on the table that will enable the venue to stay in public hands.
Negotiations are in their final throes, but it is understood the deal will involve the state and federal government and Glenorchy City Council paying for the redevelopment and retaining ownership before leasing it to National Basketball League owner Larry Kestelman.
As a result, Tasmania will re-enter the NBL for the 2021-22 season.
A further $20 million of taxpayers’ money will be used to fund a multi-sport indoor facility next door that also will be publicly owned and operated — $10 million of which was promised by the State Government in the lead-up to last year’s election.
Mr Kestelman will acquire Wilkinsons Point for his proposed $200 million shopping, retail and hotel precinct and will also own and operate a Tasmanian NBL team to start from 2021. Any money the Glenorchy City Council makes from the sale of Wilkinsons Point will be part of the DEC redevelopment, while ownership of the DEC will be passed from the council to the State Government. The 30-year-old venue needs urgent upgrades and recent inspections have shown it is not compliant with 21st century building codes, meaning an upgrade will have to take place to be operational with or without the NBL offer.
Independent Member for Clark Andrew Wilkie has been pushing for federal funding and hailed the proposed deal for a refurbished DEC returning to the State Government as great for wider Hobart and a new multi-sport facility as sorely needed.
“The sort of deal reported today would be a win for all parties and in the public interest,” Mr Wilkie said.
“All parties need to be very careful however to respect the public interest and to ensure that any reasonable community concerns regarding the change of ownership of the DEC, and the lease or sale of land to Mr Kestelman, are addressed.
“Moreover the federal and state governments need to be genuinely satisfied that any public funding would generate a very substantial public benefit.”
It is hoped the deal will be announced before Christmas and go before the Glenorchy City Council at Monday’s council meeting.
Premier Will Hodgman said discussions were continuing and “speculation” on funding models were premature and subject to ongoing negotiation. He said it was a complex deal between the three tiers of government and Mr Kestelman.
“So we need to understand exactly what that is, but of course we want to see the team in the national comp,” Mr Hodgman said.
“I think that’d be great support for it.
“It’s a great thing to be attached to but we just need to work with them as to what is required at the Derwent Entertainment Centre and the precinct more broadly, what might be required of council, state and federal governments and then make a decision on that.”
Opposition finance and sports spokesman David O’Byrne said his party remained supportive of the idea in principle but had been left in the dark.
“We are excited by the opportunity for a team and a massive redevelopment of the DEC and that area, but we have not been briefed on this so we don’t know the details and we’ll be seeking an urgent briefing from the Government,” Mr O’Byrne said.
The NBL was contacted but a spokesman declined to comment.