It's proposed the University of Tasmania will pay $1 a year to lease public land at Invermay for a car park, as the council says it will receive more than $91,000 a year and 368 public spaces from the deal.
The City of Launceston council approved the 852 space car park at 2-4 Invermay Road off Forster Street last month as part of UTAS' $360 million relocation plans.
The proposed 20-year commercial lease, with an option for a further 20 years, has been released, with the council set to decide on the final terms on Thursday at its meeting.
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Proposed costs to the council include maintenance and installing an estimated $300,000 parking management system for boom gates, licence plate recognition cameras, CCTV and payment stations.
However, it will receive revenue from 368 public car spaces, with 484 to be reserved for UTAS staff and students, and will receive revenue for all available spaces on big event days.
The council's chief financial officer Paul Gimpl said independent valuers gave a $91,000 per annum rental value for the car park land.
He said by adding the construction costs of the public spaces and revenue from big events using the car park it would receive more than the yearly rental value.
"Calculations indicate that CoL will receive slightly more than the $91,000 per annum over the 20 years of the initial licence plus the 20 year option," he said.
"For this reason the licence fee will be $1 per annum, however, when the licence and option to extend expire, a new licence will need to be negotiated in good faith and would require UTAS to pay the going market rate for their proportion of the land."
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It proposes UTAS will be responsible for constructing the $5 million car park, contents and public liability insurance and a proportion of energy, sewerage, land tax and water charges. The exact proportion of those costs has not been disclosed.
After a commercial lease is agreed upon, UTAS intend to begin construction on the car park next month.
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