Going back stage for hidden costs of HOTA
THE Home of the Arts should be centre stage in the Gold Coast’s economic recovery. Mayor Tom Tate has put the spotlight on the Evandale cultural precinct as part of his post-coronavirus agenda. But back stage there are some serious hidden costs.
Councillor Tate attended the transport and infrastructure committee on Wednesday where the four newly elected councillors were shown photographs and artists’ impressions of the $60 million gallery – part of a $280 million masterplan for HOTA.
The photograph of workers under the rooftop and artwork of what that level and cafe downstairs will look like, and the views, are stunning. This will be a fantastic new venue.
But an item in an updated report on HOTA stage one, not debated by councillors, offers one equally stunning insight.
The report reveals that a broad transition program for the Gold Coast Cultural Precinct reviewed similar setups in other cities, and recommended outsourcing the food and beverage offerings.
As the gallery design and construction progressed, HOTA started an expressions of interest market process and engaged a retail specialist to provide advice.
“The EOI was advertised nationwide and included targeted direct marketing,” the officer’s report says.
This process considered the number of potential visitors, the city’s need for a rooftop experience, hours of operation, gallery programming and leasing arrangements.
“Unfortunately the market process did not source an operator for the ground floor cafe and level five rooftop experience that represented good value,” the report said.
“It should be noted that the final commercial arrangements have not been determined as the market process was not concluded.”
For council to outsource the lease, it would have had to provide a big incentive, possibly a rent-free period and some funding for the fit-out, the report added.
So a gallery without food and wine will not work. To avoid more costs, the council moved to get designs and include the work in the current construction contract, which ends in late November.
The report says the capital costs and HOTA’s operational arrangements for these venues will be provided in the 2020-21 budget process, along with a further report on designs.
All of this is discussed behind closed doors at special budget meetings.
But the report hints the costs have been funded at “$484,000 approximately”.
The bottom line here? Ratepayers are funding a new half-million dollar rooftop bar. Councillors cannot talk about it because the details remain commercial-in-confidence.
But a council insider said:
“There are a number of councillors concerned about $2 million being asked for this, $600,000 for maintenance of a garden, and $4 million for something else.
“They want to deliver a good product but ... some are privately saying HOTA, in financial terms, it’s becoming a bottomless pit.”
We will all have to wait to see the fine print in the budget papers later this month.