Frequently Asked Questions
LIVING CITY is well researched and modelled. With fifteen years of planning and research behind the project, LIVING CITY is supported by a range of comprehensive documents including a Project Financial Model, Cost Benefit Analysis, Regional Benefits Analysis and Risk Management Plan.
Stage 1 of LIVING CITY was a significant financial decision for Devonport City Council.
LIVING CITY Stage 1 cost $71M. Stage 1 of LIVING CITY was funded by the State Government ($13M), a grant from the Australian Government ($10M) and Council.
Whilst LIVING CITY Stage 1 required Council to make a significant investment the final borrowings were $6M less than originally forecast ($33M rather than $39) and debt was secured at lower than expected interest rates.
LIVING CITY has been factored in Council's Long Term Financial Plan.
LIVING CITY will occur in three stages.
- Four level multi-purpose civic building including a new LINC over two floors, Service Tasmania, Council offices and an 800 seat multi-purpose conference facility/function space;
- Food Pavilion (Providore Place) specialising in local produce;
- Multi-level Carpark with approximately 500 spaces; and
- Market Square and precinct landscaping.
The project also facilitates the Waterfront Precinct development, by providing a new retail space for Harris Scarfe, thereby freeing up the land required for a hotel and public space.
Works in the Southern CBD Precinct will occur upon market demand and can continue to be undertaken concurrently with other stages.
Council undertook an open Expressions of Interest process to determine the preferred proponents for the Waterfront Hotel.
Fairbrother Pty Ltd was chosen as the preferred proponent and will be responsible to develop, finance and construct the hotel and to appoint an operator.
Council will sell the required land to Fairbrother Pty Ltd for an agreed price of $1.18M.
Whilst LIVING CITY Stage 1 required Council to make a significant investment the final borrowings were $6M less than originally forecast ($33M rather than $39) and debt was secured at lower than expected interest rates.
Commercial properties purchased by Council as part of LIVING CITY have had a positive impact on Council revenue providing a solid rental return.
LIVING CITY Stage 1 was completed under budget.
Strong economic activity as a result of LIVING CITY has had a positive impact on Council’s rate revenue.
Council has been able to control rate increases whilst delivering LIVING CITY. The general rate for residential properties has only increased by 1.5% in the five year period from 2013 until 2018, which is substantially lower than cpi over this period.
Council is not borrowing any money to undertake the Waterfront Parkland. The $15M construction project is being funded by a $10M Australian Government grant and $5M from Council’s cash reserves.