Terminal cost rising
Council sources reveal price closer to $650m
RATEPAYERS will be looking at a start-up bill of more than $10 million just to prepare a case for the cruise ship terminal if councillors give it the green light.
The Bulletin last night obtained an officer’s report which led to councillors this week giving the State Government an ultimatum to include the project in The Spit master plan process.
The documents, for the first time, explore four possible future options including council itself managing the port and its services.
Council sources suggest that despite figures of $400 million being touted, the ultimate cost for an offshore cruise ship terminal at Philip Park on The Spit could reach $650 million.
The report reveals council has spent $2.5 million through the 2016-17 and 2017-18 budget process to develop the project.
Officers recommended an “additional budget – estimated $8.4 million – to complete the project development phase, the design and approval work to take the project to final investment phase”.
“This would require general loans of $8.4 million to be repaid over 10 years. Repayments will be $900,000 per annum,” the report said.
Part of that project development phase will be to determine how much a private sector financier “would be willing to take on demand risk”.
But the report notes that the way forward for the project depends on the consent of land owners, with the State Government required to allocate land on The Spit.
A council source told the Bulletin: “The recommendation was let’s send this up to the Government. If there is support, we will spend the money. If the Government says no, it will be shelved.”
But the council source confirmed Coast ratepayers could be looking at another $8 million spend on research and the possibility of a project costing up to $650 million if the Government supports it.
The report said the council would be able to make a final investment decision on the project by July 2021.
“It is recommended that the city writes to the State Government and requests the establishment of an OCST Project Control Group,” the officer’s report said.
The group would include council officers and those from agencies including the Department of Main Roads and Natural Resources.
Cr Tate emerged from the briefing on the officer’s report at full council calling on the Government to tick off on the Philip Park and Doug Jennings Park options or both as part of the master plan, buoyed that the project was economically viable.
“If they don’t, well come forward and say we don’t want it so we don’t spend ratepayers’ funds,” he said.
The Government said it wanted a master plan first rather than giving early passage to the CST.