Tasmanian Ratepayers’ Association Inc.
P.O. Box 1035,
LAUNCESTON TAS 7250
03 6331 6144
23rd. November 2012,
Alderman Albert van Zettan
Mayor City of Launceston
Town Hall St John Street
LAUNCESTON Tas 7250
Dear Mayor,
Re: Launceston City Council Meeting 26 November 2012 Item 19.2 -UTAS Student Accommodation at the Inveresk Precinct (Consolidation UTAS Campus Buildings and Land to Freehold).
We refer to the Agenda item, and express our opposition to the
proposal to transfer the land to freehold, particularly unless it is
transferred at full market value.
There are many reasons for TRA to oppose this proposal, not the least of
which is that this proposal wrongfully deals with these very valuable
ratepayer's assets. It would appear that UTAS is taking advantage of
timing here, not only to attempt to force the hand of Launceston City
Council to give over the land for the proposed student
accommodation, but at the same time compelling the hand over of
the freehold of the other substantial building and land assets that UTAS
presently occupies on a long term leasehold. This "bushranger" action is
remarkable and not becoming of a venerable institution like UTAS.
We question why this matter has only just now been revealed to the
public under the guise of concealment being headed as UTAS Student
Accommodation at Inveresk, and that there has been no time given to
the ratepaying public to give any meaningful consideration to the
merits of such a proposal, if any in fact exist. The value of these
ratepayer assets is not given, but is clearly in the $millions of dollars.
We cannot but surmise that the critically short timing for a decision
regarding the transfer of such major assets to freehold, is not
accidental, but an intentional plan to deny the public any time to
consider the demands of UTAS. Council has been aware of this
manoeuvre for a while, sufficient time to engage a Devonport solicitor
to advise it on suitable conditions, but yet there has been no publicity
or media statement issued.
It is stated in the Agenda, that this proposal for student
accommodation is more expensive than any other area suitable for
such development as identified by UTAS. The decision to develop
student accommodation at Inveresk can only be viewed as an
opportunistic demand for freehold ownership of other property as the
essential motivator.
The buildings and development land at Inveresk are valuable
ratepayer assets, and presently the Launceston City Council's Flood
Protection Authority is spending $millions constructing flood levees to
protect the area. Along the North Esk River, having previously put sheet
piling in place to protect the development site, the Authority has
recently announced it will now spend considerable additional funds to
construct a concrete wall levee, over and above the cost of the
previously-planned earth levee, so as to facilitate space for this UTAS
development for student housing.
UTAS doesn't pay municipal rates, land tax or the State Fire Levy. All of
these statutory charges for Launceston are spread over the charges
that other ratepayers are levied, resulting in UTAS facilities at both
campuses being heavily subsidised in the Region by Launceston
ratepayers alone. There are undeniable benefits to the Region and
Tasmania generally from UTAS and the Australian Maritime College,
however it is unfair and inequitable for this burden to be borne only by
the 28,000 Launceston ratepayers.
The proposed new student accommodation units won't pay rates and
these other statutory charges either, but they will take business away
from private rental landlords presently satisfying the needs of student
accommodation for UTAS and landlords who do pay rates/land tax
and fire levy.
LCC ratepayers significantly subsidise the Inveresk Precinct with capital
expenditure and operational losses amounting to $millions/year, and of
course UTAS will still expect LCC to provide and maintain carparking
facilities and subsidised bus services for their Inveresk facilities.
Alderman McKendrick has publicly stated that the North Esk
development site is valued by YPIPA at a sum in excess of $5million,
capital that could be returned to LCC ratepayers, perhaps by a
reduction in rates.
The development of this North Esk Site for student accommodation will
deny Launceston's road users the only vacant corridor for an East-West
Connector Road incorporating the Lindsay Street corridor and linking
the Northern Outlet and Kings Wharf development areas to Invermay
Road and then onto Henry Street/Ravenswood and the future Eastern
Bypass corridor. This would relieve pressure on Elphin Road and
Vermont Road, and when completed, on Wellington/Bathurst Streets.
If this "deal" is approved by Council, the City will forfeit any income by
way of capital-raising and rates investment from an alternative
development and use of the Inveresk Precinct land and buildings by
private sector developments.
The City will also lose a rent-paying tenant worth $30,000 because UTAS
are demanding that the Powerhouse Cafe also be handed over to
them. This is not a UTAS facility or part of the UTAS Campus. Where will
these demands end?
In conclusion, we ask that, at the very least, Council defer any decision
regarding this proposal at its meeting on Monday 26 November, so as
to allow for community input and for ratepayers to be consulted
properly & openly about this matter.
Yours faithfully,
Lionel J. Morrell
Lionel
President
for and on behalf of Tasmanian Ratepayers Association Inc.
