Empty Shops, Car Parks and Funny Money in Launceston

On Tuesday, the owner of the Carpark at 41-45 Paterson St (Don Allen’s company) upped the previously-agreed purchase price by $1m, causing the collapse of the “deal” for City if Launceston Council in partnership with Sydney investment banking company Bricktop Group Pty Ltd to purchase the carpark property from Allen. 

Already, on 14 May, although not publicly disclosed, City of Launceston Council had settled the secret purchase of the two Birchalls shop properties fronting the Brisbane Street Mall at 118-122 Brisbane Street. 

The deal was brokered by the State Government’s Co-ordinator General John Perry, who, having failed to convince the then-State Treasurer, Peter Gutwein to have the State Government partner with CoL in the acquisition deal [Mr Gutwein earlier withdrew last year because Mr Allen’s asking price and that for the Birchalls’ property component was several $m above valuation] leaving Mr Perry to go seek a partnership for CoL with Bricktop. 

Although CoL Councillors had sanctioned the purchases at a secret CoL meeting, that motion was on the basis of partnering with the Tasmanian Government, not Bricktop at that stage. 

The Councillors, in sanctioning the “deal” had not been shown any development proposals or drawings, but are said to have been assured by GM Stretton and CG Perry, that a commercial return would eventuate from their development investment, and if not then this ought not bother Councillors, because being a local government authority, it did not have to generate a return for any shareholders, and if necessary, it could increase taxation on its Ratepayers through its municipal rating system. 

Councillors were further reassured that any level of return would be better than the virtual nil return it was presently earning on its investment funds.... A condition of the “deal” with Don Allen’s company, was that should Bricktop not come to the ‘party’ and partner with CoL in acquiring the carpark as a development site, then CoL would be able to purchase the property outright, as it had already done with the Birchalls properties a fortnight ago. 

So why the secrecy, and now with the Carpark portion hitting a “reef”, and the deal not having been made Don Allen’s company, will this acquisition and secret development be proceeding and at what additional cost and for whom (the further deal with Foundry’s sister entity Creative Holdings in alleged partnership with Swinburne University to develop/occupy a multilevel training school atop the carpark) also looks scuttled by the embarrassing stories last week about Foundry not having been paying its staff wages and entitlements.

We are keeping our eyes and ears open. 

 Tasmanian Ratepayers Association Incorporated