Business in council stoush threatens to walk away

A VITAL Glenorchy health service may be forced to shut its doors due to an ongoing dispute with Glenorchy City Council over building defects that remain unresolved.

Physiotherapist John Kingston, who owns Revive Motional Health, became a tenant at the KGV Sport and Community Centre in 2016 spending more than $400,000 on fitting out the facility, which services about 60 people a day.

Mr Kingston said from the start there were serious defects with the building and the hydrotherapy pool, which left the facilities unfit for use.

“This delayed occupancy for our tenant St Giles, who licenses the hydrotherapy pool from our business, leaving them also considering their future at Glenorchy,” he said.

Mr Kingston said despite a longstanding agreement to waive rent until major defects with the hydrotherapy pool and other facilities were fixed, the council was now demanding $106,000 in back rent.

“If council goes ahead with the demand, we will be forced to close and relocate somewhere else, with a loss of physiotherapy services to Glenorchy and the loss of 13 specialist employees,” he said.

Glenorchy Mayor Kristie Johnston said Mr Kingston had not provided sufficient evidence of his claims that back rent was waived.

“As a commercial tenant, Mr Kingston has an obligation to pay rent under the signed lease agreement,” she said.

“Mr Kingston has been able to occupy and trade on a commercial basis from the building for approximately two years and additionally received rent from a subtenant.

“We acknowledge that the KGV building project has had a number of defect issues associated with the construction of a major building.”

The KGV development has had problems since the council got $8.7 million from the Federal Government for the project.

Last year, the Board of Inquiry report into the council found faults with the building.

Federal independent MP for Denison Andrew Wilkie, who helped secure the funding, said the project had been a circus.

“While the origins of many of the problems are the fault of the previous council, it’s up to the new council to clean up the mess,” Mr Wilkie said.

“While not wanting to take sides in individual disputes, I must say I feel some sympathy for all the tenants who have had to put up with delays, design and fit-out deficiencies, and problems finalising leases.”