$20 million cadet facility on the brink as defence deadline approaches

The North Launceston facility and another $14.7 million facility at Youngtown are vital parts of the Launceston City Deal first signed in 2017.

The University of Tasmania, the Tasmanian Government and the Department of Defence have been negotiating the complex process for the sale of 1.23 hectare Lot 2 75 Newnham Rd since 2021.

The difficulty surrounds an education covenant on the block.

The $550,000 transfer has not been achieved despite the involvement of Premier Jeremy Rockliff and UTAS vice-chancellor Rufus Black in negotiations.

Documents obtained by Jacqui Lambie Network Senator Tammy Tyrell reveal frustration between Defence, UTAS and the Tasmanian Government with the prospect of compulsory acquisition being mooted and even examination of an alternative site.

In December last year, the Department of Defence set a deadline of February 29, 2024, for the land transfer to occur.

Defence Assistant Secretary Adrian Kovacs wrote to Coordinator-General John Perry saying that monthly costs of $40,000 were being incurred.

"The defence is incurring additional monthly fees in the order of $40,000 and will continue to do so until the project can commence.

"Noting the cost implications, the defence respectfully requests that UTAS seek to resolve the existing restrictive crown lease condition on Lot 2 on or before February 29 2024.

"Defence will make every effort to deliver on its commitment to the City Deal and appreciates your assistance in finalising acquisition of Lot 2."

Included in the documents is an October letter from Coordinator-General John Perry to UTAS seeking to establish UTAS's position "because it would appear from our discussions that there may be a further different version".

"The last formal understanding my office had of UTAS's position was that it was committed to finalising sale of lot 2 to DoD as quickly as possible given DoD's clear insistence on agreement and process to allow construction of its cadet facility," Mr Perry wrote.

"Given DoD's increasing concerns around timing ... this process was the only practical option to achieve the land sale in order to meet DoD's timelines.

"Following the Vice Chancellor [Rufus Black]'s meeting with the Premier and then our discussions on October 5 the process proposed above appears may no longer be UTAS's position."

"Please could you confirm UTAS's current position at your earliest convenience. We are in regular contact with DoD staff who are becoming increasingly concerned by delays and lack of clear process to allow the cadet facility to proceed."

In June the Defence assistant secretary property management Jason Ford wrote to Vice Chancellor Black:" I bring to your attention UTAS's contractual obligation to do all things necessary to obtain the removal of the Reservation from Lot 2 . UTAS is not entitled to permit considerations extraneous to the Contract to hinder that result."

In a letter Coordinator General executive director Northern Cities Mark Baker wrote to Defence property interests and acquisition project manager Robert Dunning: "We have been in conversation with UTAS several times and their position has changed somewhat in regard to their more unreasonable attempts to leverage the circumstances."

This week in a response to the Examiner a Defence spokesperson said: "Defence is awaiting the Tasmanian Government and UTAS to resolve land title matters that will enable Defence to acquire the land and commence construction of the North Launceston Cadet Facility.

"The works package tender for the North Launceston Cadet Facility will be released once Defence has acquired the land.

"Awarding of works packages and construction commencement will occur once the tender process is completed.

A spokesperson for the Tasmanian Government said a number of issues needed to be resolved to facilitate the lifting of the condition on the title that the land be used only for educational purposes by UTAS.

"UTAS and the Tasmanian Government continue to work closely together on the arrangements necessary that would enable developments such as the Cadet Defence Facility," the spokesperson said.

"The Tasmanian Government remains very committed to the Cadet Defence Facility project and is working with all stakeholders on a solution to ensure it can be fulfilled.

University of Tasmania Executive Director Campus Services Phil Leersen said: "We are actively working with the State Government on lifting the educational covenant on the land and hope to see the process and subsequent sale progressed and completed as soon as possible."

The cadet facility is part of a $57.4 million project called the Anglesea Barracks Project committed by the Morrison Government.

Defence plans to tender the works package for the North Launceston Cadet Facility following completion of land acquisition activities.

Defence plans to tender the works package for the Youngtown Depot (Army Reserve) following the engagement of the contractor for the North Launceston cadet facility.

Construction for these two works packages is expected to commence in the second half of 2024 and be completed in the second half of 2025.

In one letter wrote to Coordinator General executive director Northern Cities Mark Baker wrote to Defence property interests and acquisition project manager Robert Dunning:"We have been in conversation with UTAS several times and their position has changed somewhat in regard to their more unreasonable attempts to leverage the circumstances.