Brisbane CBD

[ozbob]

From the Couriermail click here!

Premier Campbell Newman's plan for Brisbane CBD

Premier Campbell Newman's plan for Brisbane CBD

PREMIER Campbell Newman will today unveil a multi-billion-dollar sell-off and rebuild of government office towers in a masterplan he says will rejuvenate the Brisbane CBD.

The first phase of the CBD masterplan could see one, and possibly two, major office towers built on Crown land in William St by private enterprise and leased back by the state.

Several rundown state buildings in George St and William St would be sold or demolished - including the Executive Building, the premier's headquarters.

There would be a new pedestrian plaza in front of Parliament House on Alice St and a riverside boardwalk with leisure and entertainment facilities, plus a cultural hub built under and over the Southeast Freeway.

But the Parliament unveiling is the first voters will have heard of it, with no mention of the massive scheme during the drawn-out election and even longer "phoney" campaign last year.

Mr Newman will tell Parliament the first stage of the developments will create 18,093 jobs over five years.

Selling the land and leasing back in to new buildings was cheaper for the taxpayer than refurbishing the current structures, the Government says.

The Government says there will be no cost to the taxpayer due to private sector involvement and the "rationalisation" of redundant state properties.

It is understood public consultation will begin with the announcement, while developers can put in expressions of interest from Thursday.

Mr Newman said the new "Precinct Master Plan" will reinvigorate the inner-city and be a catalyst for new building activity to stimulate the ailing construction industry.

The grand plan invites the injection of billions of dollars of private capital for new hotels, a possible new casino, commercial buildings, cultural and residential space and major new retail amenities.

Works Minister Bruce Flegg, who will drive the master plan, said last night the new works would enliven what had become a forgotten part of Brisbane.

Heritage buildings would be protected. Some may be available for sensitive commercial use, including The Mansions, Harris Terrace, and possibly the Commissariat Stores.

Although the Government was "cash-strapped" it was rich in quality CBD property, Dr Flegg said.

"And we will be inviting the private sector to tell us what it wants," he said.

Mr Newman said the plan would unlock the heritage area and enhance Brisbane's reputation as one of the great emerging cities.

Dr Flegg said the Government would move swiftly in calling for expressions of interest for a new office building of up 60,000sq m at 1 William St, currently a carpark.

The Government will also seek options for the redevelopment and enhancement of 80, 100 and 102 George St.

"The last documented plan for the Government Administrative Precinct was in 1974, so this really is an area for significant revitalisation, particularly when considered with the area under the freeway," he said.

"This model of building partnerships with the private sector to build and lease back to government will be considered as a way of releasing capital for future redevelopment and refurbishment of other buildings in the Government precinct."

[ozbob]

From the Brisbanetimes click here!

Newman plans new government office block

Newman plans new government office block
May 28, 2012 - 6:56PM

The Queensland government's ageing Executive Building, which houses the Premier and senior ministers, will be demolished as part of a master plan to transform the parliamentary end of Brisbane's CBD.

It is understood the plan, to be announced by Premier Campbell Newman tomorrow, will include the construction of a new government building opposite the Parliamentary Annexe on William Street.

The land is currently occupied by a carpark, beside the Riverside Expressway, and was the subject of a political brawl in August last year.
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Brisbane City Council at the time questioned why the then-Labor government would allow development on the partly-flood-affected block at 25 William Street when the government was preventing the Howard Smith Wharves hotel near the Story Bridge.

It is understood the master plan to be announced tomorrow will include the construction of the new government offices as part of a private sector development.

The land may be sold to the private sector for construction of the building, with the government leasing offices in the complex.

Currently, Mr Newman and some of his senior ministers work from the Executive Building at 100 George Street, near the Mary Street intersection.

That building is expected to be demolished once the new facility is constructed.

A source said the demolition of the Executive Building was one of four options that was considered by the previous Labor government, but had been considered too "left field".

"They had about four different options and that was one of them," the source said.

"But it was pretty left field, as in pretty speculative."

brisbanetimes.com.au last year reported Cox Rayner Architects had given the Bligh government a number of submissions on how to develop the 25 William Street site.

At the time, Brisbane City Council planning committee chair Amanda Cooper questioned why, if Howard Smith Wharves could not go ahead, the state government was continuing with plans to develop the land on William Street.

Council's Floodwise Property Report shows the swollen Brisbane River covered the bottom third of the rising block in January.

In August last year, the Department of Public Works confirmed it had received design submissions but said there were "no current development applications or approvals to develop the site".

The announcement of the master plan tomorrow follows confirmation the government will not proceed with building a new government-owned office building at Bowen Hills.

In a statement issued today, Public Works Minister Bruce Flegg said the decision to axe the building was based on concerns the $275 million project could leave the government with an asset worth less than the capital invested.

"Current indications are that continuing with the project and then selling the building could have resulted in a write down of between $50 million and $80 million at completion," he said.

"Upon review, this Bowen Hills Government Office Building project is not considered to be the best use of taxpayers' funds."

- with Tony Moore

Read more: http://www.brisbanetimes.com.au/queensland/newman-plans-new-government-office-block-20120528-1zf2a.html

[justanotheruser]

ah the good ol lease back plan. always seems like a good idea at first untill it ends up costing more than doing it yourself. it is a bit like companies who outsource various jobs. it is cheap at first and then becomes more expensive once they have lost the ability to do the job themselves.

[SurfRail]

All the more reason to plop a railway station at Albert Street.

[johnnigh]

So Campbell is moving into financial engineering to add to his civil attainments.

As mentioned above, it's a method of manipulating cash flows and giving budget figures a dose of Botox. Because governments borrow more cheaply than businesses, and govts don't demand a 15% hurdle rate of return above borrowing costs, over the long run the private sector solution will always be more expensive unless the deal includes significant sweeteners for the private investor.

Example the Tennyson tennis centre deal: We get the tennis centre and the river gets lots of blocks of uninspiring looking 'luxury' flats (fortunately, in this case, some of the blocks of flats won't be built and BCC pays over the odds for a new park, but that's another story).

[#Metro]

As mentioned above, it's a method of manipulating cash flows and giving budget figures a dose of Botox. Because governments borrow more cheaply than businesses, and govts don't demand a 15% hurdle rate of return above borrowing costs, over the long run the private sector solution will always be more expensive unless the deal includes significant sweeteners for the private investor.

Well not necessarily. It is like renting or buying a house really. Stump up the cash now or pay rent...

[Golliwog]

As mentioned above, it's a method of manipulating cash flows and giving budget figures a dose of Botox. Because governments borrow more cheaply than businesses, and govts don't demand a 15% hurdle rate of return above borrowing costs, over the long run the private sector solution will always be more expensive unless the deal includes significant sweeteners for the private investor.

Well not necessarily. It is like renting or buying a house really. Stump up the cash now or pay rent...

Rent that the government has no say over how high it gets, and it's always paying it. Are they planning on moving Parliament out of Brisbane sometime soon? If so, renting makes sense. If not, why the hell would you?

[ozbob]

Premier
The Honourable Campbell Newman

Tuesday, May 29, 2012

Master Plan announced to reinvigorate Government Precinct

Premier Campbell Newman and Minister for Housing and Public Works Bruce Flegg today announced the development of an exciting plan to renew the Government Administrative Precinct.

As well as reinvigorating the precinct, Mr Newman said the plan would act as a catalyst to stimulate the construction industry.

"The Precinct Master Plan is expected to provide around 18,000 jobs over five years and will be delivered at no additional cost to taxpayers," Mr Newman said.

"The plan calls for the strategic redevelopment of key sites in George and William Streets with a focus on mixed use functionality including commercial, retail, residential, hotel and cultural amenities.

"Importantly, it will protect and celebrate the heritage buildings in the area including the old printing buildings, Harris Terrace and the Mansions in George Street."

Mr Newman said a key aim of the Precinct Master Plan was to start rationalising the Government's office portfolio and revitalise the precinct through mixed-use development.

He said the State would underpin the redevelopment by remaining a major tenant in the Precinct.

"To start the redevelopment, the Government is now calling for registrations of interest for the construction of a new office tower of up to 60,000 square metres at 1 William Street.

"This vacant site, currently being used as a carpark, has been designated for government office development since 1974 and is the logical site for government administration given its proximity to Parliament.

"The Government will also seek options for the redevelopment and enhancement of 80, 100 and 102 George Street through an Expression of Interest process, providing up to 60,000 square metres of additional office space."

Housing and Public Works Minister Bruce Flegg said the Precinct Plan was an unprecedented opportunity to enhance Brisbane's reputation as a vibrant city with modern architecture set in a well-planned urban environment.

"The last documented plan for the Government Administrative Precinct was in 1974, so this really is an area ripe for significant revitalisation particularly when considered with the area under the freeway," Dr Flegg said.

"It will give the local building industry a much needed shot in the arm and will allow for the rationalisation and improved efficiency of government office accommodation within the Central Business District.

"It's also the perfect opportunity to improve the traffic flow around the precinct.

"The sale of prime real estate also opens up significant opportunities for private sector investment in commercial office space, retail and residential sites."

The Queensland Government Administrative Precinct area stretches from Queen Street to the Botanic Gardens, and from the river's edge to Albert Street.

[ENDS] 29 May 2012

[somebody]

Urgh!

What about fixing up the public transport there!  If I am coming in on a train not via South Bank my only real options are: (a) walk 20mins or so (b) use the free city loop buses, which aren't particularly frequent.

[Gazza]

More City Precincts buses!!!11!!!!1

I propose the 499 ...Oxley/Corinda via Coro Drive to City Precincts. Would run half hourly, peak only.

[somebody]

More City Precincts buses!!!11!!!!1

Now, now.  These only apply in peak.  We need something for outside of peak.

[Gazza]

I don't get why the loop bus cant just run as frequently as say the 29. Would solve a lot of problems at once.

[somebody]

I don't get why the loop bus cant just run as frequently as say the 29. Would solve a lot of problems at once.

People on the south side still might as well get off at South Bank and walk over the Goodwill Bridge.

Actually, it pretty much already does outside of peak.  Every 10 minutes all day.  There's a low take up of this option.  What's that tell you?

[Gazza]

What's that tell you?

Albert St station is needed!

[colinw]

I'm getting a queasy feeling about this. Didn't the lame-o "Cleveland Option" include a Parliament station?

[somebody]

I'm getting a queasy feeling about this. Didn't the lame-o "Cleveland Option" include a Parliament station?

Thought that crossed the river about where the Kurilpa bridge does.

[ozbob]

Brisbanetimes --> Parliamentary revamp plans recycled from Labor

[colinw]

I'm getting a queasy feeling about this. Didn't the lame-o "Cleveland Option" include a Parliament station?

Thought that crossed the river about where the Kurilpa bridge does.

[somebody]

Right - it didn't cross the river there, just went along Herschel or Tank Sts to reach the shore line.

[SurfRail]

Actually, it pretty much already does outside of peak.  Every 10 minutes all day.  There's a low take up of this option.  What's that tell you?

I thought it was actually cut down to one every 15 minutes (which is what the PDF says).  That it is now running every 10 is news to me.

A service like that really needs to run every 5 minutes or not at all - and for that matter, given the activity around Eagle Street on weekends, I don't know why they can't run it then.  Get some funding from Brisbane Marketing to help pay for it.

[somebody]

html timetable or whatever we call them now shows every 10 minutes in both directions.  Perhaps that is wrong.

[Golliwog]

But surely physically owning the asset is worth something at the end of it? Government makes the income from renting to smaller tenants (cafe/newsagent type deal, maybe even lease some of the office space). Plus if they ever do move then it can be sold, or rented out to commercial interests. And if you're saying renting is 'better' then what is the logic behind people who buy properties to rent to people?

[#Metro]

But surely physically owning the asset is worth something at the end of it? Government makes the income from renting to smaller tenants (cafe/newsagent type deal, maybe even lease some of the office space). Plus if they ever do move then it can be sold, or rented out to commercial interests. And if you're saying renting is 'better' then what is the logic behind people who buy properties to rent to people?

Governments don't need to make profit because they have taxes...

Governments also need cash in hand because they need to fund services etc now and they are trying to maximise that rather than asset wealth.

[Golliwog]

But surely physically owning the asset is worth something at the end of it? Government makes the income from renting to smaller tenants (cafe/newsagent type deal, maybe even lease some of the office space). Plus if they ever do move then it can be sold, or rented out to commercial interests. And if you're saying renting is 'better' then what is the logic behind people who buy properties to rent to people?

Governments don't need to make profit because they have taxes...

Governments also need cash in hand because they need to fund services etc now and they are trying to maximise that rather than asset wealth.

First statement is a vast over-simplification, and I don't see how it applies here. Yes governments are meant to run services that people need that wouldn't be done by private interests as they would normally not be profitable. But if they're building their own building, they have ever right to make a profit from renting parts of it out. If the proposal was for the government to build a new building soley for the purpose of renting the whole thing out to make a profit, then yes I would have an issue with that, but that isn't what is being proposed.

The second statement I would correct to say they are trying to minimise their debts, rather than maximise services.

[#Metro]

Governments are a special case of a very large non-profit monopolistic organisation.

[Golliwog]

Governments are a special case of a very large non-profit monopolistic organisation.

What?

They may have some sections that deliberately run at a loss (eg: coverage routes) but they can also have others that don't (IIRC, route 199 turns a profit does it not?). Just because the basic idea of government is to collect taxes to run services that benefit people as a whole, doesn't mean that they can't have profit generating businesses. What is Personalised Plates QLD if not a money making venture?

[justanotheruser]

But surely physically owning the asset is worth something at the end of it? Government makes the income from renting to smaller tenants (cafe/newsagent type deal, maybe even lease some of the office space). Plus if they ever do move then it can be sold, or rented out to commercial interests. And if you're saying renting is 'better' then what is the logic behind people who buy properties to rent to people?

Governments don't need to make profit because they have taxes...

Governments also need cash in hand because they need to fund services etc now and they are trying to maximise that rather than asset wealth.

Look at the old Telecom. made massive profits but was put back into upgrading services in the bush to make them similar to city standards. Once competition came in then regardless of what regulations the government made they don't put the same investment into the bush. They made profit to be able to provide services. So while it is true they don't need to it is far better especially when every election people focus on who will give them the most money back.

[johnnigh]

To sort out some of the dodgy economic analysis to be seen on this thread I recommend the textbook I taught from in my third year public economics course at UNE some years ago: Quiggin, J. (1996), Great Expectations: Microeconomic Reform and Australia, Allen and Unwin, Sydney. His chapter on privatisation should be a revelation. It's probably out of print, but available in good libraries.

[Golliwog]

To sort out some of the dodgy economic analysis to be seen on this thread I recommend the textbook I taught from in my third year public economics course at UNE some years ago: Quiggin, J. (1996), Great Expectations: Microeconomic Reform and Australia, Allen and Unwin, Sydney. His chapter on privatisation should be a revelation. It's probably out of print, but available in good libraries.

Cheers. For those that are interested UQ has 10 copies in their SSAH library. I'll hopefully swing through and grab one.

I'd add that I am more than willing to accept that anything I've posted is wrong, as I am by no means an expert. I'm mostly wanting to get a discussion going to try and get a better understanding of it.

[ozbob]

Brisbanetimes --> Developers to drive CBD renewal project

[ozbob]

Premier
The Honourable Campbell Newman

Wednesday, May 30, 2012

Widespread Praise for Government Precinct Plan

The Newman Government's visionary plan to redevelop the Government Administrative Precinct has won support from bodies as diverse as Queensland's union movement and the state's property and construction sectors.

Organisations which have publicly stated their support for the redevelopment of the precinct include the BLF, CFMEU, Master Builders and the Property Council.

Premier Campbell Newman said he was pleased Queenslanders recognised the benefits that would flow from the major infrastructure project.

"The redevelopment of the Government Administrative Precinct will bring thousands of new jobs to Queensland, breathe new life into an underutilised part of Brisbane's CBD and not cost taxpayers a cent," he said.

"It also fits the bill in terms of the LNP's pledge to rein in costs, as it will rationalise and consolidate government office accommodation within the city and provide longterm cost savings for taxpayers.

"I am heartened that the LNP's plan has received strong support from a wide cross-section of Queensland organisations, including unions, and I anticipate their ongoing support for the project."

BLF State Secretary David Hanna said the redevelopment 'can't happen soon enough' (Media release, 29 May 2012) and predicted it would create thousands of much-needed jobs for Queenslanders.

The union also publicly condemned Labor's longterm neglect of the precinct and asked for the redevelopment to be fast-tracked.

CFMEU State Secretary, Michael Ravbar welcomed the announcement, describing it as "...the boost that the flagging construction industry needs." (Media release, 29 May 2012)

Property Council Queensland Executive Director Kathy Mac Dermott said the redevelopment would boost jobs, spark more commercial activity and improve the amenities of the precinct. (Media release, 29 May 2012)

Master Builders Executive Director Graham Cuthbert said the organisation was "...excited about the LNP's vision for our industry and believe the announcement is the good news we desperately needed." (Media release, 29 May 2012)

The Queensland Government Administrative Precinct area stretches from Queen Street to the Botanic Gardens, and from the river's edge to Albert Street.

[ENDS]

[HappyTrainGuy]

If they brought back the dragon rollercoaster that used to be in the Myer Centre I'm sure everyone would be happy with the development

[ozbob]

I am 'heartened' too Premier.  More reason for Albert St station ... bring it on!

And the roller coaster ...   

[justanotheruser]

Premier
The Honourable Campbell Newman

The Newman Government's visionary plan to redevelop the Government Administrative Precinct has won support from bodies as diverse as Queensland's union movement and the state's property and construction sectors.

Organisations which have publicly stated their support for the redevelopment of the precinct include the BLF, CFMEU, Master Builders and the Property Council.

More spin!  Wide and diverse support? Construction companies and construction unions? Not exactly diverse is it. it is just people who have a vested interest.  Apparently we have a shortage of tradies yet the construction industry is struggling. Seems contradictory to me.

Wish they would provide all this assistance to industries I have worked in. nope they would rather not despite one of them being quite a large employment sector so job losses would have a large impact.

Brisbanetimes --> Developers to drive CBD renewal project

Can anyone explain why a private company building an office is going to inspire othre companies to build other office blocks plus hotels?  I don't quite understand the logic there.

[Gazza]

I am 'heartened' too Premier.  More reason for Albert St station ... bring it on!

And the roller coaster ...   

Trivia, I've been on said roller coaster...It's called California Screamin' at Disney California Adventure.

[Stillwater]

I kept my lunch on the roller coaster, but lost it on the next ride - the crazy ferris wheel.   

[Golliwog]

I kept my lunch on the roller coaster, but lost it on the next ride - the crazy ferris wheel.   

Haha, both of those were great fun!

[ozbob]

Brisbanetimes --> The changing face of Brisbane

[BrizCommuter]

BrizCommuter is surprised not to see the elevated tracks of the Cleveland Solution in the artists impression. 

Based on current google keyword blog stats, BrizCommuter's current guess for Campbell's CRR alternative is longitudinal seating.

[ozbob]

Couriermail --> Builders rush for piece of city facelift