❓ Hon Neil Thomson questions the Finance portfolio regarding the $12 million value proposition of the Landgate building sale in Midland, specifically inquiring about the inclusion of savings from Department of Communities office closures and the cost of temporary accommodation for Landgate staff during refurbishment. The answer confirms inclusion of both, with approximate values provided.
AnsweredQoN 2092Legislative Council
QuestionView source ↗
I refer to my question on notice 1395, Thursday 9 November 2023, concerning the sale of the Landgate building in Midland, and the answer indicating a value proposition of $12 million saving in net present value for the State, and I ask: (a) did the $12 million value proposition include an amount for the costs associated with the two Department of Communities offices/buildings no longer required as a result of the eventual planned relocation of staff into the Landgate complex; (b) if yes to (a), what was the estimated benefit associated with these building changes; (c) was the cost of temporary leased accommodation (whilst the Landgate building was being refurbished) for Landgate staff included in the value proposition; and (d) if yes to (c), what was the cost of temporary leased accommodation?
AnswerView source ↗
Answered
17 September 2024
Responded by
Minister for Finance
Response time
9 days
The Landgate building is an ageing asset. The sale arrangement was an open market process under a Market Led Proposal (MLP) Problem and Opportunity Statement. The process and assessment of financial outcomes was run by an independent committee and the outcome was subject to rigorous, independent assessment. When considering a range of factors – including necessary upgrade costs, ongoing maintenance, and the benefits of co-locating other State Government agencies – the lease option presents a superior financial outcome to taxpayers resulting in approximately $12 million in avoided costs.
(a)-(b) Yes. Approximately $8 million.
(c)-(d) Yes. Approximately $12 million.
(a)-(b) Yes. Approximately $8 million.
(c)-(d) Yes. Approximately $12 million.
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