URGENT LETTER TO LAUNCESTON'S ALDERMEN

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.