❓ A parliamentary question seeks details on incentives for a hotel construction on the FESA house site, including briefing dates, financial incentive amounts, the reason for the tourism incentive scheme's cessation, and justification for the transaction's commercial return.
AnsweredQoN 3965Legislative Assembly
QuestionView source ↗
On what date/s did the Minister receive briefings/s either oral or written on the incentives provided to the proponents for the construction of a hotel on the FESA house site: (a) who provided that briefing/s; (b) identify at which briefing/s the quantum of the financial incentive was provided to the Minister; (c) why is it that Tourism's hotel incentives scheme is no longer operating; and (d) please explain the statement by acting Tourism Minister Day that the FESA transaction "provided a higher commercial return to the Government than the independent valuation obtained during the land valuation assessment"?
AnswerView source ↗
Answered
21 May 2015
Responded by
Minister for Tourism
Response time
30 days
Answer as at 21 April 2015 -
(a) Tourism Western Australia Chief Executive Officer and senior officers, including the Chairman who attended three of the briefings.
(b) Written briefings on the quantum of the financial incentive and write-down values for the FESA House development were provided to Minister Hames on 18 April 2013 and 9 July 2013, and to Minister Harvey on 14 August 2013, 28 August 2013 and 22 November 2013. Verbal briefings on the financial details of the development were provided to Minister Hames on 15 July 2013, Minister Harvey on 26 August 2013 and 18 November 2013 and to Hon Alyssa Hayden MLC as Parliamentary Secretary to the Minister for Tourism, who attended in place of Minister Harvey, on 24 October 2013.
(c) Please refer to Legislative Assembly Question on Notice 3836.
(d) In 2013 independent valuations of the FESA House site were obtained from Jones Lang LeSalle and Colliers International, with review and approval of the Valuer General's Office. Both valuations of the full 7,335 square metre site, with a mandated hotel, were less than zero (-$27.5 million and -$17 million respectively). However, a 3,000 square metre commercial block was valued at $6 - $8.25 million and $9.8 million respectively. For the whole site, with a hotel mandated, the developer is paying the equivalent office development value. Thus, the $8 million sale of the site for a mixed used development provided a higher commercial return to the Government than the independent valuations for a hotel only development.
(a) Tourism Western Australia Chief Executive Officer and senior officers, including the Chairman who attended three of the briefings.
(b) Written briefings on the quantum of the financial incentive and write-down values for the FESA House development were provided to Minister Hames on 18 April 2013 and 9 July 2013, and to Minister Harvey on 14 August 2013, 28 August 2013 and 22 November 2013. Verbal briefings on the financial details of the development were provided to Minister Hames on 15 July 2013, Minister Harvey on 26 August 2013 and 18 November 2013 and to Hon Alyssa Hayden MLC as Parliamentary Secretary to the Minister for Tourism, who attended in place of Minister Harvey, on 24 October 2013.
(c) Please refer to Legislative Assembly Question on Notice 3836.
(d) In 2013 independent valuations of the FESA House site were obtained from Jones Lang LeSalle and Colliers International, with review and approval of the Valuer General's Office. Both valuations of the full 7,335 square metre site, with a mandated hotel, were less than zero (-$27.5 million and -$17 million respectively). However, a 3,000 square metre commercial block was valued at $6 - $8.25 million and $9.8 million respectively. For the whole site, with a hotel mandated, the developer is paying the equivalent office development value. Thus, the $8 million sale of the site for a mixed used development provided a higher commercial return to the Government than the independent valuations for a hotel only development.
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