Developer Offers Buyback for Scrapped Redlands Project Amidst Council Investment Arm Uncertainty
A significant proposed development, a $250 million shopping centre and multi-storey car park at Redland Bay, which was recently axed by the Redland City Council, has seen its original developer, Don O’Rorke, step forward with a surprising offer. O’Rorke, representing Consolidated Properties Group (CPG), has proposed to buy back the project from the council’s investment arm, Redlands Investment Corporation (RIC), aiming to resurrect the plan as initially envisioned. This move comes as a shadow of uncertainty looms over the future composition of RIC’s board, adding another layer of complexity to the already contentious situation.
The Weinam Creek Priority Development Area, a key site earmarked for this ambitious project, was intended to alleviate the parking woes of residents from the Southern Moreton Bay Islands. Currently, these islanders face overcrowded parking facilities when commuting to the mainland via ferry. CPG had been in contract with RIC for almost two years, with the project reportedly on schedule and within budget, and work was slated to commence this year. However, in a December vote, Redland City Council opted to terminate the agreement with CPG and instead pursue a standalone car park solution in partnership with the state government.
O’Rorke’s revitalised proposal, revealed earlier this week, includes purchasing the land from RIC and proceeding with the construction of the Coles-anchored shopping centre and car park, with Hutchinson Builders continuing as the construction partner. This offer is particularly noteworthy given the recent events surrounding RIC. Questions have arisen regarding the tenure of RIC’s three board members, especially since the board had, just two days prior to the council’s cancellation vote, recommended that the project proceed. Speculation is rife that at least one, and possibly all three, board members might depart following the company’s annual general meeting in March. While a RIC spokesperson acknowledged that the AGM agenda was not yet finalised, they did not refute the possibility of board changes. The current board comprises Chair Phil Hennessy, former KPMG Queensland Chairman, and directors Mitch Nielsen and Greg Kempton.
RIC manages five active projects across the Redlands, including the Weinam Creek development, and oversees assets totalling $24.2 million. The corporation has experienced a turbulent period, with two chief executive officers departing within a span of just over a year.
O’Rorke has not shied away from expressing his concerns regarding the cancellation of the Weinam Creek project. He has suggested that the council’s decision could inadvertently benefit a local firm with familial ties to Redland City Council’s Chief Executive Officer, Louise Rusan. O’Rorke highlighted that the council’s resolution to cancel the mandate not only resulted in the loss of approximately 200 local jobs but also followed a previous instance where the council opposed a local Aldi development.
- Impact on Local Retail Landscape:
- The cancellation of the Weinam Creek project leaves Woolworths as the sole supermarket in the immediate vicinity, effectively ending retail competition.
- This situation arises as the owners of a Woolworths-anchored shopping centre in the area, Fox and Bell, have reportedly placed their $70 million centre on the market.
- When approached for comment, Fox and Bell principal Garry Hargrave declined to confirm whether their existing centre was indeed up for sale.
The council’s decisive vote to alter the plans for the Weinam Creek site occurred on December 10 last year, following an urgent motion put forward by local councillor Shane Rendalls. Rendalls detailed on his website that this motion was a consequence of a meeting involving councillors, council staff, local state Members of Parliament, and representatives from Economic Development Queensland (EDQ), the state body responsible for Priority Development Areas.
The Path to Cancellation: A Series of Meetings and Motions
- EDQ’s Presentation: Economic Development Queensland presented a proposal and a projected timeframe for the advancement of the multi-storey car park at Weinam Creek.
- RIC’s Proposal: RIC subsequently presented its latest proposal to councillors the following week.
- The Urgent Motion: Councillor Shane Rendalls initiated an urgent motion that was ultimately passed by a 7-3 majority.
- Key Directives of the Motion:
- CEO Louise Rusan was mandated to negotiate with the state government for the construction of the car park.
- RIC was instructed to formally notify CPG that their development agreement was terminated.
O’Rorke reiterated his firm’s readiness to proceed with the Coles-anchored facility, a project he stated the council had promised to the community. He stressed that this development would introduce much-needed retail diversity and challenge Woolworths’ current market dominance. CPG’s offer to RIC, valued at $5.75 million, also includes a commitment to maintain at least 200 public car parks for community use throughout the construction phase – a detail absent from the initial agreement. This revised offer, obtained by this masthead, is being made under the framework of the memorandum of understanding that the council’s December decision was understood to have allowed to lapse.
Furthermore, in response to recent developments and after “listening to the state,” the updated proposal would incorporate a residential component, with CPG reaffirming its willingness to deliver the public car park. A letter dispatched to RIC, councillors, and state government representatives outlines CPG’s concerns about “a number of governance issues at the Redlands City Council,” prompting their decision to make their purchase offer public for enhanced transparency.
The Deputy Premier, Jarrod Bleijie, expressed his disappointment in a letter to Redlands Mayor Jos Mitchell, describing the council’s shift in strategy as “regrettable.” Bleijie highlighted that the car park’s delivery was an election commitment and affirmed the state government’s intention to prioritise land acquisition for this purpose. He conveyed confidence in the collaborative efforts between EDQ and the council to secure this outcome. However, he cautioned that if an agreement could not be reached swiftly, the state would explore alternative measures, including the use of its compulsory acquisition powers.
A spokesperson for the Deputy Premier’s office stated that the state government is actively progressing with the car park project, and any other decisions fall under the purview of the council. A council spokesperson addressed the matter of CEO Louise Rusan’s potential conflict of interest, confirming that it has been registered with the council and is being managed in accordance with appropriate governance protocols.
