UTAS reveals the deal

Uni to pay city $350k in first year

THE amount of money the University of Tasmania will give the Hobart City Council each year for rates equivalency payments has been revealed.

Hobart Lord Mayor Anna Reynolds and university Vice-Chancellor Rufus Black yesterday signed a historic heads of agreement which will see UTAS make a financial contribution to the city in lieu of paying rates.

As a property with an educational purpose, the university is entitled to an exemption from paying general rates.

However, over the next 10 years, the university will pay a “rates equivalent” for all of its Hobart city properties.

The figure will begin at $350,000 for the first year and will grow by CPI each year over the decade.

Prof Black said the figure was equivalent to paying general rates on all its properties.

UTAS has also agreed to pay an additional developer’s contribution in situations where the council is undertaking work near land owned by the university from which it would directly benefit.

This may include things like footpath extensions and improvements, bike lanes, street trees and public art.

Prof Black said there was not currently a set budget for this additional money.

“We haven’t set a budget because that’s really going to be [done] as we develop the plan together for the city,” he said.

“What we do know is the city and university’s success are one and the same thing, so working out what the numbers will be makes sense for the flourishing of the city.”

Any additional properties the university buys during the 10-year period will also attract the rates equivalency payment.

Prof Black said the university was committed to ensuring that its move to the city — which would take place over the next 10 to 15 years — would have a positive impact on the way Hobart developed.

“We want to preserve and protect those things which people love about Hobart now, and listen carefully to the things people would like to improve,” he said.

“We understand investment will be required to deliver the community vision which is developing around our campus proposal.

“We approach our campus transformation ever-mindful that these are complex and important considerations and we will take the time needed to create a vision befitting Hobart.”