Cultural and Civic Space Project Continues to Shape Up

Published on 27 August 2021

After months of extensive exposure to the commercial market Council resolved at its meeting on 26 August to approve the sale of Rigby House at the agreed price of $11,750,000 exclusive of GST.  Market conditions have been strong in recent months and the offer is in line with valuations and above expectations, as were the sale prices achieved for Council property sales at Rose Avenue and the Museum.

Additionally, Council resolved to enter into 30 year fixed rate loan with the Commonwealth Bank of Australia (CBA) for $50.265 million.  CBA has been working with local governments across the country for over 100 years on long-term projects so they make the ideal finance partner for this landmark community project. 

Council’s General Manager Steve McGrath said these decisions are very positive for the community and the Cultural and Civic Space Project.

“This is a huge win for the community well into the future and provides the certainty that is needed right now.

“Council financial modelling for the project always included a 30 year borrowing and being able to fix the interest rate for a period of 30 years removes any future interest rate risk for the Council and therefore the community.”

The rate remains commercial in confidence between Council and the lender as is standard practice. 

On the construction front, Lipman continues to complete all the inground structural piles and have commenced with detail excavation for our pile caps and inground stormwater drainage. Diversion of the overhead power lines on Gordon Street has been completed with minimal impact to the community.

Next month will see more detail excavation, stormwater drainage to the basement level and the pour of the concrete slab of the basement.