Tasmania’s premier has doubled down on a controversial land sale with NBL billionaire owner Larry Kesselman, despite warnings from his own departments that taxpayers could be forced to pay up to $100 million to activate the site.
Jeremy Rockliff has dismissed advice to abandon negotiations with Kesselman’s LK Group and offer the 15-hectare Wilkinson’s Point site at the open market.
Documents reveal there is no guarantee the prime real estate near the state’s major arena will ever be developed.
“We’re about listening to advice and considering advice from a range of areas,” Mr Rockliff said.
“We’re still in the negotiating process right now to ensure that we can get the best opportunity for Tasmania.”
The Premier insisted LK Group wanted to “invest in Tasmania” after coming to Tasmania in 2019 to begin the launch of the JackJumpers NBL team.
Kestelman’s original plans included a 12-storey, 250-room hotel, a multi-purpose community centre, food and beverage facilities, sports-related retail, public spaces and trails.
As part of the development agreement announced last February, the state government would fund critical “common-use infrastructure”, including a new Wilkinsons Point ferry terminal, services and associated parking facilities.
But Shadow Treasurer Dean Winter says the premier has “serious questions to answer” about why he’s “bypassing an open, competitive process”.
“Why is the premier prepared to risk $100 million of public money without testing the market?” he said.
“Why is a mainland billionaire being given treatment that local proponents would never receive?”
Tasmania’s Auditor-General found significant shortcomings with the process in September, including the absence of a business case and failure to follow proper procedures.
Independent MLC Bec Thomas said the revelations confirm her long-standing concerns.
“Is this incompetence, secrecy, or a combination of both?” she said.
Thomas has called for the sale to be paused until proper process can be demonstrated.
Fellow independent Ruth Forrest questioned why government would ‘prop up’ private investment when other parts of the budget face enormous pressure.
LK Group has been contacted for comment.
