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The developer behind a scrapped $250 million shopping centre and multi-storey car park has offered to buy back the project from a trouble-plagued council investment arm, as a cloud hangs over the future makeup of the company’s board.
This masthead last week reported that the centre’s developer, Don O’Rorke, had voiced concerns over the project’s cancellation, suggesting the move would benefit a local firm with familial links to a Redland City Council executive.
The Redland Bay marina site, part of the Weinam Creek Priority Development Area, would have serviced residents of the Southern Moreton Bay Islands who currently park their cars in overcrowded lots when they access the mainland by ferry.
Redland City Council voted to scuttle the development, which was contracted to O’Rorke’s Consolidated Properties Group (CPG), and turn to the state government to build a standalone car park in December last year.
CPG had been contracted for nearly two years by the council-owned Redlands Investment Corporation (RIC), and O’Rorke said the project had been running on time and on budget, with work set to begin this year.
On Monday, O’Rorke revealed he had offered to buy the land from RIC and complete the Coles-anchored centre and car park with Hutchinson Builders as previously planned.
Meanwhile, there were questions over whether the three board members of RIC – which had recommended the project continue to councillors as recently as two days before the vote to cancel it – would continue in their roles after the company’s annual general meeting in March.
A source with insight into the situation who spoke to this masthead on condition of anonymity said at least one of the three would quit. Others speculated it would be all three.
A RIC spokesperson said the AGM’s agenda had not been set, but did not deny that any board members would be moving on.
The board is made up of the chair, former KPMG Queensland chairman Phil Hennessy, and directors Mitch Nielsen and Greg Kempton.
Hennessy and Kempton have both attended all meetings of the RIC board, and all five of the meetings for the company’s subsidiary RIC Toondah – in charge of the stalled Toondah Harbour development – while Nielsen attended four of each.
This masthead attempted to get in touch with all three on Monday, but did not hear back from any.
RIC has five ongoing projects in the Redlands, including Weinam Creek, and controls $24.2 million in assets. It has been through a period of upheaval, with two CEOs walking away in just over a year.
In his criticism of the Weinam Creek decision, O’Rorke suggested the change could benefit the owners of a nearby shopping centre who have family links to the council’s CEO Louise Rusan.
“Redlands Council resolved not to extend the mandate thereby cancelling 200 local jobs, and [the decision also] follows a previous move to also oppose a local Aldi,” he said.
“This now leaves only Woolworths in the area with no retail competition, just as the owners of the Woolworths-anchored shopping centre, Fox and Bell, have put the $70 million centre up for sale.”
In response to questions a last week, Fox and Bell principal Garry Hargrave would not confirm whether the existing centre was being sold.
The council voted to change its plans for the site on December 10 last year, after local councillor Shane Rendalls moved an urgent motion.
In a post on his website, Rendalls said the motion followed a meeting between councillors, council staff, local state MPs, and representatives from Economic Development Queensland (EDQ), who are responsible for PDAs statewide.
“EDQ presented a proposal and timeframe for progressing the multi-storey carpark at Weinam Creek,” he wrote, adding that RIC presented their latest proposal to councillors the following week.
The motion, passed 7-3, called for Rusan to negotiate with the state to build the car park, and for RIC to tell CPG the deal was off.
O’Rorke told this masthead his firm had been given a mandate by the council to deliver the centre and were “ready and willing to do that immediately”.
“We are urging the council to let us get on and build the Coles facility, which they have promised the community – thus ending Woolworths’ monopoly position in the marketplace and offering real diversity.”
CPG’s $5.75 million offer to RIC would also include at least 200 public car parks remaining available for public use during construction, a detail not in the previous deal.
The firm’s offer, obtained by this masthead, is being made under the memorandum of understanding that the council’s December decision was said to have let lapse.
After “listening to the state”, the updated development would also include a residential element. The firm said it remained willing to deliver the public car park.
“Given recent events CPG is concerned with a number of governance issues at the Redlands City Council,” the letter sent to RIC, councillors and state government representatives said.
“Given this, we feel it is appropriate to make public our offer to purchase, providing full transparency to all levels of government and the community in Redlands.”
In a letter to Redlands mayor Jos Mitchell late last month, deputy premier Jarrod Bleijie said the council’s decision to change tack was “regrettable”.
Bleijie said the delivery of the car park was an election promise, and the government would now need to acquire the land for the car park “as a priority”.
“I remain confident that EDQ and council will work together with urgency to reach an agreement to secure this outcome,” he wrote.
“However, should it not be possible to reach such an agreement quickly, the state will consider utilising other mechanisms, like its compulsory acquisition powers.”
The deputy premier has been contacted with questions about whether he knew the CPG deal was being scrapped, but he is yet to respond.
A council spokesperson said Rusan’s conflict of interest was registered with the council and was “managed under appropriate governance processes”.
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Matt Dennien is a reporter at Brisbane Times covering state politics and the public service. He has previously worked for newspapers in Tasmania and Brisbane community radio station 4ZZZ. Contact him securely on Signal @mattdennien.15Connect via email.From our partners
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