Business

Tower in rental arrears for a year: Brittany Lauga

GREAT KEPPEL ISLAND DISPUTES: Member for Keppel Brittany Lauga says Tower Holdings has the necessary approvals to undertake a resort redevelopment, including construction of a beachfront hotel, tourist villas and apartments, a marina, an airport and an 18 hole golf course.
GREAT KEPPEL ISLAND DISPUTES: Member for Keppel Brittany Lauga says Tower Holdings has the necessary approvals to undertake a resort redevelopment, including construction of a beachfront hotel, tourist villas and apartments, a marina, an airport and an 18 hole golf course. Contributed

BRITTANY Lauga yesterday revealed Tower Holdings has been in rental arrears for a year, with the department intending to issue formal "notices of intent to forfeit" in the coming days.

The Keppel MP said she was disappointed to reveal the company was not meeting its financial obligations to their Great Keppel Island lease.

She also unveiled her "three-point plan" to get the GKI project off the ground without a casino licence and said she was behind Tower Holdings "all the way" despite days of criticism following the parliamentary vote on Wednesday.

In a release on the issue, Ms Lauga said Tower had rent arrears of more than $249,000 in relation to four of its GKI leases and one marine lease over the underwater observatory.

"The Department (of Natural Resources and Mines) has had numerous interactions with Tower over the past year in an attempt to manage rent arrears, most recently on March 2 when they failed to pay the quarterly invoices due on March 1," she said.

"Tower Holdings owes substantial rental arrears and, in situations like this, the department works with lessees to attempt to manage the debt.

"However, where a lessee fails to pay rent or manage significant arrears, the department is able to undertake debt recovery action through the forfeiture and sale provisions of the Land Act."

But information provided by the office of Ms Lauga said given the value of the leases and the infrastructure on them, GKI Resort Pty Ltd (a subsidiary of Tower Holdings) were likely to pay the outstanding debt once the department commences formal forfeiture and sale actions.

The DNRM wrote to GKI Resorts on July 6 last year to remind the company of its lease obligations and received a response on September 17.

They reportedly advised the department of a number of actions that were being progressed to address the areas of non-compliance, though none are yet completed.

Despite all this, the MP said she was paving a pathway forward for Tower, so work could begin on GKI immediately.

She suggested the company scale back Stage One and apply for the Northern Australia Infrastructure Fund, with the realisation that generating infrastructure under the sea from the mainland was an obstacle to obtaining finance.

Ms Lauga said the fund was a way for Tower to fund power, water and telecommunications.

"I made enquiries and was advised Tower would be eligible," she said.

"(Tower Holdings chairman) Terry Agnew has confidence that he can start work on this project without a casino licence... he said they would start work in 2015 regardless of whether they got a casino licence or not.

"Terry Agnew is so confident of starting work on this project that he signed agreements with the State Government which promised that they would start work (even after the LNP didn't give them a casino licence)."

The Tower Holdings' spokesperson declined to comment on the proposed plan and the rent arrears.

Lauga's three-point plan

1. Tower needs to pay the lease rent in arrears as soon as possible and comply with all of their obligations of the lease

2. Tower, the Federal Government and myself to work together to get a slice of this Northern Australia Infrastructure Facility finding;

3. Tower needs to start the detailed design of a scaled back Stage 1 to get shovel to ground

Topics:  brittany lauga keppel tower holdings



Our six art gallery picks for a creative day out

YOU may not associate Brisbane with a burgeoning art scene, but you’d be mistaken.

Six hideaway bars to escape winter chill

The Gresham's charm will win you over before your first sip.

THESE are the perfect places to hang this winter.

Brisbane's arts and culture events centre stage

You loved the film, now you're about to love the musical. Don't miss The Bodyguard The Musical in Brisbane this July.

THE arts and culture events you don't want to miss.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Date nights under $50

Nothing is more romantic than a picnic with a cracking view.

NOT every date has to cost you a bomb.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

University career put on hold for the greater good

Jack Nicoll is heading to Tanzania to help with charity work.

Rocky to Tanzania for charity mission

Strelow stays positive on Adani talks

Mines Minister Anthony Lynham, Premier Annastacia Palaszczuk and Adani's Jeyakumar Janakaraj. Shadow Mines MInister, Andrew Cripps says the government's support is nothing more than a publicity stunt.

Discussions continue as Qld Govt agree to facilitate funding

Breaking: Owner's anger as prized Rocky racehorses left mutilated

The damage from a hit and run incident involving trainer Laurie Clem and his horses.

Rocky racehorses worth big dollars left for dead on roadside

Local Partners

WATCH: Judah battles his emotions as he makes Top 12

Judah Kelly has made it through to the top 12 of Australia's The Voice competition.

Karl Stefanovic's rant about Schapelle Corby 'a bit rich'

Karl Stefanovic is sick of hearing about Schapelle Corby.

Maybe he just wanted to make himself the story.

Could Schapelle be heading for Gladstone?

Australian Schapelle Corby is escorted by Bali Police at the parole office in Denpasar, Bali, Indonesia, 27 May 2017.

Schapelle's mother teases her free daughter could be Gladstone bound

Six things you never knew about Men in Black

Mushu the pug

It's been 20 years since Men in Black first hit cinemas

10 strange stories behind famous sex scenes

Khaleesi and Khal Drogo in a steamy moment.

Every set has their own way of filming sex scenes

HBO spills new details on Game of Thrones’ final season

Game of Thrones’ eighth and final season will only have six episodes.

New details about what to expect from the eighth, final instalment.

Karl’s rant on Corby: ‘Made to look like idiots’

Karl Stefanovic is sick of hearing about Schapelle Corby.

Today co-host launched a tirade against Schapelle Corby media circus

New $46.7m counter-terrorism facility to be built in Wacol

Premier Annastacia Palaszczuk, pictured with Police Commisioner Ian Stewart, has announced plans to build a new counter-terrorism facility in Wacol.

The facility will be built over three years.

Home to a sex worker: Sordid history of iconic Coast shed

Milojevic Djordjevic's daughter Linda at the derelict shed on Yandina-Coolum Road.

The shed was once a liveable 'barrack'.

This is real estate's billion-dollar man

Bob Wolff at AREC with John McGrath of McGrath Real Estate.

They don’t call him the “Billion dollar man” for nothing

Man's amazing comeback from monster crisis

Pat O'Driscoll agents Penny Keating and Doug Webber sold 56 Agnes St, The Range at auction over the weekend.

NOT long ago, he sold his possessions to pay staff. Now he's back.

Deluge brings massive price rise for property near Rocky

BIG BUY: The Howard family handed over Yaamba's historic Balmoral property to the Harvey family on Thursday.

DOWNPOUR'S perfect timing entices buyer to pay huge dollars.

Ready to SELL your property?

Post Your Ad Here!