By ERWIN CHLANDA
Nice work if you can get it: The NT Government will pay rent to developer Michael Sitzler amounting to three times the original government-projected cost ($10m) to build a new Supreme Court in Alice Springs, and twice what it ultimately cost ($16m according to the figure cited on Mr Sitzler’s company’s website).
The government has further “contributed” $3m for the fit out of the court facilities which take up the bottom three floors of the five storey building. The upper two are being rented by Federal Government offices, vacating premises elsewhere in the CBD, which are also paying rent, of course.
The rent the NT Government is committed to pay is $1.49m (GST exclusive) a year for 20 years, which works out to $29.8m.
We made several requests to the government for this information, beginning May 11 and finally got a reply yesterday.
This does not include CPI increases nor “market reviews”. Do these reviews mean, by any chance, that the rent will go down if local rents plummet, as the current large amount of vacant commercial real estate suggests they may?
We’re putting this question to the government and Mr Sitzler although he hasn’t been forthcoming previously with responses to our questions about the building.
The deal was set up by former Chief Minister Adam Giles who announced this in a media release on September 5, 2014: “The state of the art building will be constructed by local company, 19 Parsons Street Pty Ltd which is owned by local developer Michael Sitzler.
“The Supreme Court is expected to cost $10m.”
Government to pay $30m plus in rent for court
By ERWIN CHLANDA