Funding options on display at Callan Park meeting

An extraordinary general meeting of Leichhardt Council on January 31 is set to clarify questions over alternative funding models for the Callan Park masterplan.

Planning consultants McGregor Coxall have proposed four financial models for the redevelopment of the site, each mapped out over 15 years. The first option, outlined at the last council meeting, provides for the implementation of the entire masterplan, but would entail charging full market rent on all rental properties, including those occupied by NGOs. The resulting revenue would help pay for park and infrastructure improvements valued at $131 million, building demolition, refurbishment and fit-outs worth $112 million, plus maintenance costs of around $2 million a year.

A partial-implementation derivative represents the second funding option. This alternative would allow existing NGOs to maintain their current rents, and allow a 40 per cent market rate rent cap for any new NGOs, while charging full market rent for all other, non-NGO, buildings. This would see all infrastructure upgrades other than essentials (such as power and sewerage, and the reconstruction of roads and footpaths) excluded from the redevelopment of the park. However, it maintains the provision for new playing fields, valued at $3.2 million, and includes building demolition and refurbishment worth $86 million.

The remaining two options are ‘minimalist expense’ models. The first proposal would see 40 hectares of Callan Park leased to Leichhardt Council for 99 years – a model based on the State Government’s proposal to subdivide and lease the area. Alternatively, the whole site could be managed under a Trust, this representing the fourth funding model. As with the other proposals, these would provide for the construction of new playing fields, but would only see a very limited amount of infrastructure maintenance and renewal every year – amounts valued in the hundreds of thousands, rather than millions of dollars.

Pending the outcome of the extraordinary meeting, it is expected Council will move to place the draft masterplan and funding options on public exhibition throughout February. A further extraordinary general meeting is anticipated for March 21, where Council’s formal adoption of the masterplan is expected to be considered.