Quicker growth hinges on loan
A NEW $18 million reservoir to fast-track massive residential development in the southern corridor of Cairns is about to be brought forward by years if one crucial decision is made.
Townsville developer Frederik Kroymans wants to launch the potential 1500-lot Pinecrest subdivision at Mount Peter as quickly as possible to capitalise on a spike in home construction.
Kenfrost also has subdivisions waiting to be built in the area but a lack of water infrastructure means both projects are on ice.
Trunk pipelines, a water storage reservoir and a pump and chlorination building are required to service the area, but until now it has fallen outside Cairns Regional Council’s “priority infrastructure area”.
A new decision to apply for a $15 million interest-free state government loan could set the ball rolling much sooner than anticipated, with works currently not scheduled until sometime between 2023-24 and 2026-27.
A council report states the project would allow 446 lots to be built and serviced with water – although further major infrastructure will be needed down to tract to fully realise the suburb’s population growth potential.
“Industry has reported that demand for residential land in Cairns has experienced a resurgence that has not occurred for over 10 years following the recent announcement of various government grants,” it said.
The State Government’s new building acceleration grants means ratepayers would have 15 years to pay back the $15 million with no interest charged.
Loans are limited to $15 million, meaning the council will still need to draw down funds to pay the projected $3.2 million shortfall.
The application came after a request from Mulgrave MP Curtis Pitt, suggesting the council’s chances of scoring the loan should be high.
Division 1 councillor Brett Moller said the council would need to build the $215 million Draper Rd water treatment plant upgrade at Gordonvale before too long – currently scheduled for 2026 – and State Government funding would be critical.
“Not wanting to compare Townsville but … they cried ‘water crisis’ and were granted $200 million for a duplicate pipeline to the Burdekin to service that city,” he said.