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Independent Evaluation Backs TM Plan

An independent evaluation of the competing Currawong proposals backs the Corporate Ranaissance plan as "clearly the only option on which to proceed" both on overall merit and a financial basis.

The analysis by First Pacific Davies finds the CR proposal superior on a range of grounds including: income generated, superior accomodation, quality of asset in 35 years and risk to Labor Council.

Labor Council secretary Michael Costa said that, on the basis of the independent assessment, the Labor Council executive would recommend the Corporate Renaissance proposal be approved.

"This analysis shows that the benefits of the Corporate Renaissance proposal are significant; whereas the Friends of Currawong plan has major flaws," he said.

Extract from First Pacific Dunlop Report

CONCLUSION

The proposal to lease the property to construct the Corporate Renaissance conference facility, a new architect designed and planned conference centre, both on overall merit and a financial basis, is clearly the only option on which to proceed. We have reached this conclusion based on the overall analysis of the two proposals. The Corporate Renaissance proposal is superior for the following major reasons:

- Increased income - $200,000pa (secured by a lease) v $130,000pa (projected income)

- Superior and larger accommodation will be provided to the Labour Council at the end of the 35 year lease, i.e. 80beds v 59 beds.

- The fact that a significantly improved facility with larger more valuable buildings will be handed back to the Labour Council at no cost at the end of the lease. Estimated construction costs in 1999 of $7 million for Corporate Renaissance proposal as opposed to the Friends of Currawong refurbishment of $1.2 million.

- Current access and room rates to the resort will still be maintained, calculated on the present occupancy rate of 80% per annum.

- At the end of the lease the Corporate Renaissance improvements will be much more contemporary than the facility that would be provided in the alternative Friends of Currawong refurbishment program. The existing facilities, upgraded in 1999/2000, are much more likely to be obsolete by the period 2038/40 than a new accommodation designed in 1999.

- Less risk to the Labour Council. Currawong would not have to be offered as mortgage security for construction finance as would be the case under the Friends of Currawong's proposal. There would also be no exposure to interest rate movement with the Corporate Renaissance proposal as no funds are borrowed.

   full text of the independent assesment

  View entire issue - print all of the articles!

  Issue 7 contents

»	Labor Council to Vote on Currawong Proposal
»	The Story So Far ...
»	Costa: What I�ll Do With The Dough
»	Friends of Currawong Plan: Borrow To Grow
»	Independent Evaluation Backs TM Plan
»	How the Voting Works

»	Guest Report
»	Sport
»	Trades Hall
»	Piers Watch

»	A Real Aussie Preamble
»	The Get Stuffed Tax
»	Laboring for Education
»	Tipping: No One Got Close

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