Issue 112 of COAST Community News

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July 15, 2015

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Ph: 4325 7369

Issue 112

Kibbleplex level 2 is likely to become a car park

The best option presented to Council for the Kibbleplex building was to turn another level of empty retail space over to parking

he currently vacant upper floor of the Kibbleplex building in Henry Parry Drive is likely to become a 300-space car park based on a report to the Tuesday, July 14 ordinary meeting of Gosford Council.

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Council received a report from a strategy/policy workshop held in March that recommended a strategic change for Kibbleplex targeting the upper vacant level as car parking. It also recommended that initiatives to lease the ground floor for learning and education, retail, commercial or community activities and a possible smart work hub expansion should continue. However, the report concluded that prospects for the future of Kibbleplex are limited and Council’s return on investment miniscule. “Recent reports and reviews suggest Kibbleplex is not an ideal library location and other sites are under review,” the report said. “In this respect, most learning and education uses would be better dealt

with in conjunction with the library.” Kibbleplex was acquired for $11 million in 2011, subsidised by a $7 million grant on the basis the two upper levels provided 400 commuter parks for five years, the report said. This commitment expires on February 28, 2016, effectively transferring full control of the building to Council. “The lower levels have a combined area of 18,000 sqm but remain vacant given their size, location and limited adaptability for most uses,” the report said. “Numerous initiatives by Council and private investors to deliver solutions on these floors have failed. “The combined existing and foreseeable demand from all potential uses is less than 25% of the total area available.

“Available grants are too small to deliver outcomes over the large area. “Significant Council investment is not recommended, due to limited prospect of a commercial return and also the insufficient economic benefits available. “Entities such as the Smart Work Hub can expand if successful, and solid interest exists from one educational entity at present. The suggestion to investigate conversion of the upper vacant level for car parking was seen as “a strategic and low risk investment for Council, likely to provide good future returns as CBD revitalisation occurs. “A position on this initiative and the February 28, 2016 expiry date will also enable a City Centre Park Strategy to be

finalised,” the report said. “The two lower levels were always a major challenge and were initially mothballed. “Each provides 9,000 sqm floor plates with limited demand or utility in their current form. Since 2011, numerous initiatives have been touted including a learning and education centre, lecture theatres and meeting rooms, co-locating the library, smart work hub, and large office spaces. All options resulted in very little return on investment for Gosford Council, according to the report. “In 2011, a private developer took an option to lease the building and create a Paddy’s Market” type concept to the ground floor and commercial offices above. “The project failed due to minimal interest. “Other leasing campaigns also failed, generally because; the floor plates do not provide

appealing office premises, natural light is very low and better alternatives exist elsewhere. “Annual office demand in Gosford is limited and even if marketable; the large floors would take many years to fill. “Forecast rent levels do not suggest a satisfactory return given the costs to deliver.” The report also said ongoing initiatives to establish a learning and education centre also remain uneconomic. “The total demand from all prospective learning and education uses is only around 4,000 sqm, less than 25% of the space available,” it said. The report suggested that learning and education users would want Council to fund their fit out and other set up costs, also considered unviable. “Learning and education premises are small, with the largest to date being a 1,500 sq metre interest from the Central Coast Community

College (“CCCC”). “This is progressing and does not rely on a library presence. “Available tools to measure the economic impact of these entities suggest limited economic benefits. “Nearby universities remain reluctant to commit to Gosford in any substantial manner, which could justify Council investment.” A commercial agent has again been appointed to pursue large retail or commercial tenants for the ground floor but interest to date is low and significant results are not anticipated. “Both floors are unlikely to lease in the foresee-able future. “The $7,000,000 potential funding available, equates to only $390 per square metre, so meaningful fit-out initiatives would need Council capital.

Office: 120c Erina Street, Gosford Phone: 4325 7369 Fax: 4321 0940 Mail: PO Box 1056, Gosford 2250 E-mail: editorial@centralcoastnews.net Website: www.centralcoastnews.net

Ordinary meeting agenda, 14 July 2015 Gosford Council Jackie Pearson, journalist


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