City assets on block

Council assets may go

A MOVE to look at selling Hobart City Council assets to help ease a $ 12 million loss was supported by councillors last night.

Aldermen Damon Thomas and Marti Zucco put forward a motion seeking a complete analysis of council’s asset holdings, identifying those that could be sold or used to reduce debt levels in other ways given COVID- 19 had hurt its financial position.

HOBART City Council may sell assets as it searches for ways to deal with the financial fallout from COVID- 19.

Aldermen Damon Thomas and Marti Zucco put forward a motion seeking a complete analysis of the council’s asset holdings, identifying assets that could be sold or used to reduce debt levels in other ways.

The motion was supported as a means to deal with the economic impacts of COVID- 19, which includes an estimated $ 12m loss this financial year.

Ald Thomas said council could consider selling the city’s under- utilised assets, or generating income from council property without selling or relinquishing control of assets

“It is important that as part of the ongoing strategies to recover from the pandemic that all realistic options are considered by the council,” Ald Thomas said.

“As an alternative to the disposal of assets, there may be options around restructuring the ownership model or using the assets portfolio to provide a better return for ratepayers.”

Councillor Bill Harvey said he would support the investigation as long as the social and environmental values of assets were considered in the report.

“We might not get a big return on something … but from a social value or environmental value the return may be enormous,” Cr Harvey said.

Budget estimates have revealed council was to face a $ 17.66m revenue loss for 2020- 21, but it would be offset by about $ 6.1m through decreases in labour costs, materials and services.

Council’s losses include a 40 per cent reduction in parking revenue, a 25 per cent reduction in rents and a 27 per cent reduction in income from business units such as the Doone Kennedy Aquatic Centre) and other fees and charges.

Also at Monday’s council meeting, the developer behind an apartment block asked for a deferral so it could amend the building’s design.

A 51- unit block at the site of the old navy club in Davey St was recommended for refusal by council staff because it did not “make a positive contribution to the streetscape”, was detrimental to the historic cultural significance of the precinct and “unreasonably dominated” existing buildings.

The $ 9.8m development was designed by local firm JAWS Architects for developers Tellyros Klonis Unit Trust.

The applicants asked for council to defer a final vote so the building height could be reduced.