‘Ripped off by measly sale price’
GOLD Coast ratepayers have been “ripped off” by the $48 million sale of the councilowned Bruce Bishop Car Park, warns a leading Surfers Paradise business group.
Save Surfers Paradise (SSP), which includes top business operators, lawyers and a retired judge, is stunned by the decision after building a fighting fund to launch Supreme Court action to stop the sale.
It says the sale of the car park would have a negative effect on Surfers Paradise traders.
“The reports are very alarming,” SSP secretary Deborah Kelly said last night.
“Firstly, the case that Save Surfers Paradise has commenced in the Supreme Court to prevent the sale is under way. It is hard to see how the council could enter into a contract to sell the property while the matters are before the court.
“Secondly, circumstances surrounding the (initial) sale vote in 2017 are under investigation by the Crime and Corruption Commission and the administrative processes behind the decision are also being reviewed by the Queensland Ombudsman’s office.
“In our view, it is most improper for the council to progress this matter at all while the matter is before the court and the CCC.”
The Bulletin reported in March that Mayor Tom Tate and CEO Dale Dickson were being investigated by the state corruption watchdog following complaints about the car park.
Cr Tate declined to comment at the time saying: “I respect the confidentiality of the CCC.” Mr Dickson said he “welcomed an independent investigation”.
The allegations contained in a lengthy dossier prepared by SSP included conflicts of interest, misuse of authority and making false and misleading statements.
A key allegation was the CEO having his contract renewed by the Mayor when responsible for negotiations into the sale of council land to Cr Tate’s development group.
Councillors were told yesterday that the difference between the deposit and settlement date for the buyer – Melbourne-based Care Park and the Far East Consortium – was 12 months.
Veteran councillor Dawn Crichlow asked acting council chair Cameron Caldwell about the “narrow window” and “is it anything to do with the court case?”
Cr Caldwell replied: “The time between contract signing and settlement are commercial terms. In the officer’s recommendation – it notes specifically the execution of sale contract will proceed in the near future with only outstanding litigation in respect of council’s ability to sell the site needing to be resolved satisfactorily.”
Outside the meeting, Cr Caldwell said the sale meant ratepayers would not be burdened with extra debt.
When asked by the Bulletin about whether council could not be fully confident about the sale given the court case, he replied: “Oh, look, we’re in the hands of the court and we will always respect the outcome of whatever those proceedings are.”
SSP and some real estate agents have questioned the sale price given a nearby block being redeveloped for two towers recently sold for $34 million.
“If the council really is considering selling this valuable community asset for a measly $48 million, then the Gold Coast City ratepayers are really being ripped off,” Ms Kelly said.
“The replacement value of this car park is estimated at $100 million, and that’s assuming that a large enough piece of land could actually be found to replace the car park.
“Let’s not forget that when the council first floated the idea of selling the car park last year, figures of $80-100 million were being touted as the sale price. Why now is the deal being considered for about half that amount?”