1 William St Brisbane

[ozbob]

Progress at the ' Tower of Power ' ...





Photographs R Dow 14th May 2015

[ozbob]

Construction continues ...



Photograph R Dow 3rd June 2015

[hU0N]

That third photo (in particular) is a beauty.

[ozbob]

Couriermail --> Labor pulls fancy rug from beneath Newman plans for luxury fitout

[pandmaster]

I think the consolidation is a good idea. However a lot of these furnishings were absurdly decadent.

[Golliwog]

I think the consolidation is a good idea. However a lot of these furnishings were absurdly decadent.

I'm mixed. I think there were some stupid decisions made with the consolidation but broadly speaking, if you have excess space I'm not opposed to downsizing the building you're in to save some $$$.

However, I don't understand some calls, for example, shifting TMR from the Spring Hill building, which as I understand it, they owned, into other buildings that they now rent. It's also meantthat while there's still space for staff, a lot of the files that it ws decided weren't neccessary are now stored off-site, so to get them means a request to the storage company for a particular file to be delivered, which then costs $$

[SurfRail]

Leasing back is what is known, charitably, as an "accounting trick".

[ozbob]

Couriermail --> Lips zipped on 'Tower of Power' fitout

[ozbob]

http://statements.qld.gov.au/Statement/2015/6/15/1-william-street-to-house-queensland-public-service-from-2016?utm_source=twitterfeed&utm_medium=twitter

Media Statements
Treasurer, Minister for Employment and Industrial Relations and Minister for Aboriginal and Torres Strait Islander Partnerships
The Honourable Curtis Pitt
Monday, June 15, 2015

1 William Street to house Queensland public service from 2016

State Government Ministers and other public servants will be headquartered at 1 William Street in Brisbane's CBD from 2016, Treasurer Curtis Pitt announced today.

Mr Pitt said the government took the decision to move into the LNP-commissioned office tower following an exhaustive examination of all other possible options.

"We have thoroughly investigated all alternative options for public service accommodation in the CBD," he said. "This included investigating whether or not to move Ministers into 1 William Street.

"But the fact is that the former Government contracted us to move into the building from 2016, and we have an obligation not to make a bad decision worse.

"Another consideration was the Queen's Wharf integrated resort development, whose construction will require the demolition of the current Executive Building.

"Moving into 1 William Street is the best option for Queensland taxpayers, because the alternatives to moving in would have been even more costly."

Mr Pitt said the previous LNP government's plans for 1 William Street had not been commercially viable.

"This building was given the go-ahead when we had the highest vacancy rate in the Brisbane CBD in recent memory," he said.

"Campbell Newman was seeking rent of around $650 per square metre and the current market rate is currently in the $500 per square metre range.

"Queenslanders would have needed to cover the rent to the tune of $200 million over the next 15 years under the LNP's plan.

"Subsiding the private sector at the current market rate would have meant providing subsidies to the tune of up to $42 million over this period.

"That's unacceptable and we won't be subjecting taxpayers to these ongoing costs."

Mr Pitt said Queensland Labor had already scaled back the lavish office fit-outs the LNP planned for 1 William Street, saving Queensland taxpayers $1 million-plus.

"We've scrapped the LNP's extravagant fit-out plans which were all about pandering to Campbell Newman and Tim Nicholls' egomania," he said.

"This has been a terrible deal for Queenslanders and it will continue to be a terrible deal for Queenslanders unless we can be smart about how we occupy the building."

[#Metro]

I can't really see what all the fuss is about. It's red team doing what blue team did when they got in - talk about how it was ' under the other side'. We all remember how mind-numbing that was!

The rot sets in very rapidly, no matter what side is in power. Give it a bit more time and all the wheels will fall off. 3-year terms are just too unstable to get any sense out of the politicians.

City Hall, when it was built, was mind-blowingly expensive and extravagant. Then you have Brisbane City Council's 'Tower of Power' at Brisbane Square. The current public servants building is ancient and horrible, and the building is at the end of its economic life.

"Campbell Newman was seeking rent of around $650 per square metre and the current market rate is currently in the $500 per square metre range.

The purpose of a contract is to insure against changes (risk) in the open market which gives certainty. These changes could go UP or could go DOWN. If the price went up, they'd also be complaining, but for the opposite reason. This is why rental contracts on residential houses don't allow the landlord to change the rent every month.



http://upload.wikimedia.org/wikipedia/en/f/fc/Brisbane_Square_July_06.jpg

[hU0N]

The purpose of a contract is to insure against changes (risk) in the open market which gives certainty. These changes could go UP or could go DOWN. If the price went up, they'd also be complaining, but for the opposite reason. This is why rental contracts on residential houses don't allow the landlord to change the rent every month.

That's not entirely true. Sale and lease back is a way to package a loan that allows higher loan value ratios than traditional secured loans (and conveniently obscures the nature of the transaction for a government that just spent a lot of treasure convincing people that loans are evil).

Basically, the government sells an asset along with a contract to lease that asset back for a fixed amount over a fixed term. These types of transactions often (but not always) include a clause that requires the return of the asset, either at the end of the lease, or at some time afterward. In this case, the asset is to be returned after 99 years. The sale price paid to the vendor will be above the market, as it contains the market price of the asset and a premium, representing the capital of the loan. The lease payments are also usually above market rates, representing the market rate lease, plus the loan repayment and interest. The purpose of the contract is therefore to protect the buyer/lender and ensure the seller/tennant/borrower pays back the borrowed money.

I agree, the old building is decrepit, and I have no problem with the government leasing new space, and even using contracts to lock in the most favourable deal for an extended term. But that's not what the fuss is about here. I think people are reacting to the revelations that a government that made a big song and dance about how much debt they were paying off was also slipping hidden new loans into their other business activities. And now that those loans have to be paid, people are a bit WTF..

[SurfRail]

^ This, a million times.

Many of you will know I work in property law so commercial leasing is part of my bread and butter.  When I saw they were asking for $650 psm earlier today I was gobsmacked.  Even for a brand new building that is insane - small wonder they have had no interest.

CBD office leases usually come with big tenant incentives too.  I act for a number of listed and unlisted landlords and the going rate for CBD and CBD fringe office lease incentives can be as high as 1/3 of the rent over the life of the lease (ie even before you start, $120,000 turns into $80,000).

[ozbob]

Brisbanetimes --> Look inside the tower of power before 5000 public servants move in

They say moving can be more stressful than divorce, and for the government's 5000 public servants, politicians and ministerial staff, the shift is about to begin to their sleek new 41-storey skyscraper.

About 900 public servants – the first group to move – are packing their things into boxes to be moved to 1 William St, dubbed the "tower of power" this weekend.

A tour inside the "very open plan" One William Street, which will be home to 5,000 Queensland public servants.

But first, the media was given a tour of the schmick office building, which features almost floor-to-ceiling windows and boasts stunning views of South Bank and the river, indoor plants and comfortable lunch areas.

"Biomimicry", which describes imitating nature, is used throughout the building.

Sets of the three levels are connected by stairs, with each level themed with different Queensland flora and fauna, such as barramundi, Moreton Bay figs and red-eyed tree frog.

Project director Paul Krautz, with Queensland Treasury, said the rent per square metre was $649.50, meaning over 15 years, the cost would be $1.14 billion.

Former LNP Premier Campbell Newman had claimed the building would save $60 million each year in office leasing costs.

But the present Labor government said it was left with no choice but to fill 1 William Street with public servants as the private sector was not willing to pay the high rent prices.

Mr Krautz said about $1 million was saved from the $120 million fit-out cost of the building by substituting stone walls for other finishes and other measures.

"There were some sit-to-stand desks in executive areas that were coming from overseas so we got those manufactured locally ... And reducing some of the rugs and things in the fit-out," he said.

Walking towards the front entrance, the words "ONE WILLIAM" greet the visitor from above the automatic glass sliding doors, to a stone wall and floor-lined lobby, a minimalist silver piece of art hanging suspended from the ceiling.

As you ascend in the lifts of the towering landmark – which tops out at 260 metres – your ears pop, and you step out onto wooden floors.

Level 32 will be home to Employment and Industrial Relations Minister Grace Grace, Disability Services Minister Coralee O'Rourke, and the directors-general for Environment and Heritage Protection and Natural Resources and Mines.

Level 28 will be for the Department of Premier and Cabinet.

And level 23, themed red-eyed tree frog with splashes of soothing green, will be a home away from home for the Queensland Treasury.

There are decks on levels 39, 40 and 41.

Level 41 is for conferences and Deputy Premier Jackie Trad and Premier Annastacia Palaszczuk​ will be able to soak up the view from the decks on their levels.

Mr Krautz said the rest of the workers would be moved over the next six or seven weekends, finishing in late November or the first week in December.

"The public servants who are moving into this building are coming from about 20 different locations," Mr Krautz said.

He said each worker had "one individual crate, it's a bit bigger than a normal box, that's for their personal items, and then there's lots of crates for team storage and project storage".

The building has LED lights to save energy, the building was built to meet a five-star Green Star rating and the fit-out is also five-star.

About 30 per cent of desks are electric "sit to stand", adjusting at a push of a button, and there are numerous meeting areas, small nooks tucked into walls where workers may have a quick chat, and quiet rooms.

"Some of the buildings that people are coming from, some of this technology is already there, others it's not," Mr Krautz said.

"It's very open plan, everyone has equitable access to the light and view.

"In the current Executive Building it's quite chopped up, internal corridors where you can't actually see out of the building.

"We're encouraging people to actually move around a little bit and that helps with the health and wellbeing in the workplace."

There are also 680 bike racks – 80 of which are out the front – 60 showers and 650 lockers.

A rooftop bar and convenience store are still under construction outside the front entrance and a sushi and burger cafe will be opened later on the other side of the building.

Some fit-out work will continue after public servants move in, including installing screens.

Demolition of existing government buildings is expected to begin in early 2017 to make way for the Queen's Wharf development.

Cbus Property chief executive officer Adrian Pozzo said the new offices would allow the government to compete with the private sector in the battle for talent.

"This has been an investment in efficiency because, in many cases, the government is leaving old, inefficient and under-occupied buildings which are unattractive workspaces," Mr Pozzo said.