Council to buy Ipswich City Square

22 October 2008

IPSWICH City Council is close to signing a contract to buy Ipswich City Square.  Mayor Paul Pisasale said the years of impasse over the future redevelopment of the city centre would finally come to an end.  The purchase price is expected to be $45 million.

"This is about taking control of our future and re-energising our city heart," Cr Pisasale said.

The contract would be subject to a due diligence period and further approvals from the State Government and advice from the Australian Taxation Office.

"This purchase will be funded from borrowings and is fully costed.  It is a bold move for any council to make, but we expect to recoup the capital outlay within three to four years, therefore minimising any risk to ratepayers," he said.

"Ipswich City Square is considered a key site in the revitalisation of Ipswich city centre.  This is the traditional heart of our city and the signing of a contract will be the most significant event in the history of our city since Reids department store was destroyed by fire in 1985.

"This announcement by council comes at a critical time for the city.  The Ipswich Regional Centre Strategy identified the redevelopment of Ipswich City Square as one of 17 catalytic projects for revitalisation and development.

Cr Pisasale said the regional centre strategy also recognised the value of heritage buildings, the Bremer River and identified future public transport corridors.

"Planning for the redevelopment of Ipswich City Square has already been underway at the same time as council has been negotiating to take over ownership of the centre.

"Once the contract is signed we can move relatively quickly to seek expressions of interest from the private sector to facilitate the redevelopment of the entire site. 

"Everything will be on the table, including the opening up of the mall to allow direct access to the River Heart Parklands.

"The long term redevelopment may include major department stores, cafes, restaurants, and up to 20 levels of commercial and inner-city residential accommodation."

"Ipswich City Council is not in the business of being a shopping centre owner in the long-term, however given the unique circumstances, this deal will break a deadlock and guarantee the city is ready to take its rightful place as the major regional business, retail and recreational centre of the western corridor.

"In the short term we will seek to aggressively market and attract new stores to the centre.

"There are many national retailers still seeking a presence in Ipswich city centre, so we will move to appoint an agent to fill the empty shops as soon as possible after we take full ownership," Cr Pisasale said.

Ipswich City Square comprises 25,769 m² of retail and office space, of which 40% is currently tenanted.  Council also remains committed to having a customer service presence in the centre.

"Council ownership of the centre may not take place for some months, expected to be early to mid-2009."

-ENDS-

Further information

Maps

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Related websites

• Ipswich Centre Strategy The strategy strives to maintain the rich cultural heritage of Ipswich and build on its current strengths whilst identifying a range of actions to ensure sustainable growth in the area.
• Ipswich City Council can provide with all types of information from events, attractions, parks, walking trails, libraries and other general community services.
• The Queensland Government’s South East Queensland Regional Plan identifies planning ahead of the City's anticipated population boom. Ipswich's current population of 150 000 is expected to double to 318 000 by 2026.
• Ipswich Central is the destination of choice for shopping, recreation, leisure and business.