City tower

Press, 14 September 1987, Page 20

City tower

Sir,—Should the tower proceed, ratepayers will become partners in the project. In a partnership the books are usually opened to assess the financial strength of either party. As the council’s books are available for public scrutiny, will Tourist Towers, Ltd, open its books for the proposed partners’ inspection? The question meanwhile is, from where is the S2OM coming? What is the percentage of “leverage” and what amount does each director intend subscribing? Because the structure is expected to be sited on public land, the ratepayer has a right to public answers. Ignoring aesthetics, should the development need to be situated in Victoria Square to be a viable proposition it should not proceed. Alternatively, it has been inferred that it could not proceed on a commercial site on account of added cost. Either way, the developers had better think again — for everyone’s sake—Yours, etc., N. BARNETT. September 1, 1987.

[Mr Jamie Tulloch, a director of Tourist Towers, Ltd, replies: "The city council will lease the land to the developer with rent based on a turnover rental system, i.e. for every dollar spent in the tower there will be a direct

percentage return to the city. This turnover will be subject to an audit Although the developers have not actively pursued sources of finance at this stage, several major institutions have viewed the feasibility studies with enthusiasm. The directors of the company intend to provide approximately 30 per cent of the equity. The erection of the tower on public land provides the ratepayers with the greatest possible benefits and facilities while ensuring a rental return of hundreds of thousands of dollars every year.”]