Published on 16 March 2016
The LIVING CITY Stage 1 Project Funding Model has been adopted by Council following a period of community consultation and public information session.
“The Project Funding Model outlines both the project financials and long term financial implications for Council and clearly shows that Council’s financial position will likely be strengthened as a result of LIVING CITY” said Mayor Martin.
Stage 1 is expected to cost approximately $70 million, which will be made up of $10 million from the Federal Government’s National Stronger Regions Fund Grant, $12 million from the Tasmanian Government and $11 million from Council’s cash reserves. The remainder will be funded through loan borrowings with interest repayments projected to be fully serviced from new revenue generated by the project.
“Whilst $39 million in borrowings will be required to fund Stage 1 of LIVING CITY, the project is easily able to service this debt through its own revenue streams” said Mayor Martin.
“The community can be confident in knowing that Stage 1 of LIVING CITY is viable in its own right, due to the expected rental, car parking and hire income the project will generate.”
“Even based on the worst-case scenario Council has the capacity to implement Stage 1 of LIVING CITY whilst remaining financially sound” he said.
Sixty one submissions were received during the consultation period, providing both positive and negative feedback.
“Council has sought input from the community on all key milestones during the evolution of the LIVING CITY journey to-date, which has shaped the final proposal”.
“LIVING CITY is underpinned by five years of planning and is thoroughly researched. The community can be confident that Council would not be proceeding with Stage 1 if it wasn’t confident that the development will deliver strong results for the City of Devonport” said Mayor Martin.
“LIVING CITY will provide an immediate economic boost for the region and help Devonport and the North West Region realise its fullest potential” said Mayor Martin.