The state government is continuing to negotiate the sale of public land at Wilkinsons Point to Larry Kestelman’s LK Group, despite an auditor-general’s report finding failures in the process.
Premier Jeremy Rockliff was questioned over the deal in state parliament on Thursday.
Labor leader Josh Willie accused the government of a “secret deal” to sell hectares of riverfront land behind closed doors.
Willie said State Growth had warned the project could expose taxpayers to up to $100 million in risk, with no guarantee anything would be built.
He said the land was valued at about $6 million under its current zoning, but rezoning could hand the buyer a windfall worth tens of millions.
“Why don’t you stop this secret deal and take Wilkinsons Point to the open market?” he asked.
Rockliff said the redevelopment began with Glenorchy City Council, not the state government. He said no binding sale had been signed.
“It is hardly secret,” the premier said. “There has been a lot of discussion about this matter for some time.”
“Wilkinsons Point is a strategically significant riverfront site with the potential to deliver significant long-term economic and community benefits.”
He described it as a “half a billion” dollar investment opportunity in an area underdeveloped for decades.
Rockliff said there was “work in terms of appropriate zoning for the site” but would not guarantee any rise in value would flow back to taxpayers.
Willie also targeted the lease of MyState Bank Arena, saying LK Group paid about $200,000 a year in rent while the government paid back about $175,000 for community use – a net return of about $25,000.
“How did your government lease a $150 million asset to a billionaire for less than the median Hobart rent?” he asked.
Rockliff disputed the figures and offered Willie a briefing, saying the arrangements were struck by his predecessors during the pandemic and had “paid off”.
“My understanding, to the best of my knowledge, is that what you say is not right, the way you have characterised that,” he said.
The lease sets base rent at $200,000 a year and requires the government to contribute $175,000 a year towards community access.
It also entitles the government to 20% of annual turnover above set thresholds, while leaving it responsible for building insurance and major capital works.
The land surrounds the arena in Hobart’s northern suburbs and was earmarked for a $500 million retail precinct, family resort and hotel when the sale was announced in February 2025.
A ministerial briefing released under right to information laws confirms the government has not progressed beyond stage one of the sale and has not settled on a price.
No sale can proceed until a master plan is agreed. The Public Accounts Committee is examining the deal.
