Minister confirms: only 30 blocks for Kilgariff stage one

By ERWIN CHLANDA

 

Only 30 residential blocks will be built in stage one of the new Kilgariff suburb south of The Gap, Lands Minister Peter Chandler has now confirmed, with blocks to cost from $160,000 to $180,000.

 

And the developer will be the NT Government’s Land Development Corporation (LDC), after negotiations with two private developers were not successful.

 

This is similar to the way the Federal government was developing suburbs in Alice Springs in the 1970s, prior to the Territory getting self-government.

 

Asked whether the smaller scope of the project would result in reduced economies of scale, Mr Chandler said that could be argued.

 

However, the government wanted to get the development under way, in the face of private companies being “gun shy” in part because of the way the previous government had handled development of residential land.

 

“We need to give them confidence,” says Mr Chandler. Once the first 30 blocks are sold, the industry would have more confidence in Kilgariff and be more likely take on stage two of 70 blocks.

 

The LDC would get the $3.5m the government had offered developers as a subsidy to project manage stage one.

 

Normal tenders would be called and local firms would be able to bid for the work. A third party would be engaged to onset the lots.

 

Development work – roads, power, water, sewerage – will start this year, blocks will be sold “off the plan” from January and buyers will be able “to call Kilgariff home” by Christmas next year.

 

The suburb is planned to have some 1200 blocks when fully developed. Earlier proposals were for 100 blocks to be for sale “off the plan” by July this year.

 

Mr Chandler says the LDC is an experienced developer of land, but mostly for industrial use, such as the Marine Supply Base and the East Arm Port, but it is also building the residential Maluka Views in Palmerston.

 

He did not rule out involving the LDC in further residential projects if private developers do not meet the government’s price targets for land.

 

IMAGE: The the initial Kilgariff stage one when 100 blocks were planned.

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3 Comments (starting with the most recent)

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  1. Melanie Ross
    Posted October 21, 2013 at 6:12 pm

    Gun shy? Albrecht Rd, Mt Johns, Stirling Heights all seem pretty successful. Houses built, people living there. Instead of blaming previous governments, which is getting old now you’re heading into your second year of power, admit you dropped the ball, have no vision for Alice, and are doing an even worse job than the other mob.

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  2. Steve Brown
    Posted October 20, 2013 at 9:44 am

    Come on CLP, is this the best you can do? Talk about “gun shy” where’s your guts, your vision, your belief?
    You want to demonstrate belief do the whole bloody job not some miserable token gesture! How does that demonstrate belief?
    I think it demonstrates completely the opposite! How does a big company like Tellus Salt draw confidence in this community’s ability to provide housing when you’re talking about a lousy 30 blocks!
    What about all the other impending projects, where will they go? I tell you where, they will build on site or just go straight to FIFO!
    Here in Alice we lose lose lose! I can’t understand why you ever thought it necessary to bring in a private developer when you own the land and your department has the expertise to put the works out to tender.
    Is it just about finance? Nobody can finance it better cheaper than you! You don’t have to drag the money from budget, borrow it!
    If you believe in our future as you say you do, then the money invested in blocks is totally secure. Money in the bank, so to speak.
    When we at White Gums looked at doing a subdivision we found we needed a project in the order of 500 blocks to get the economy of scale to make the blocks affordable. I have news for you: So do you!
    CLP Government, you’ve got this one chance, one window of opportunity of being in government with the bonus of a sympathetic government in Canberra, don’t waste it!
    Be brave, be bold, and get on with it before you find yourselves sitting out in the cold again with nothing done! Just like Labor!
    We are growing the North! We have a dozen impending projects of size in the region!
    We have enormous opportunity in many areas. Demonstrate some belief in that, do at least half the pevelopment, don’t listen to the crap being put about by some of the smaller minds in the real estate industry about collapsing markets. You don’t have to flood the market, release the blocks slowly as they are required, you will find that the presence of the additional blocks will be an enormous confidence, hence economy boosting bonus!
    There is no better way to set about reducing debt than growing a healthy economy!
    There are some things that Government does do better than private enterprise. This is one of them.

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  3. Shaun Daly
    Posted October 20, 2013 at 12:47 am

    I’ll believe it when I see it with my own eyes … we all know how long Mt Johns took to eventuate.
    It’s like the NTG doesn’t want Alice Springs to grow. The possibilities of growth around town are many but we are always stifled by the government when it comes to population growth.
    We need more than a lousy 30 blocks, which will disappear in an afternoon, like when they finally released the Mt John blocks.
    Pity that a large portion of these were then handed back in as they were not ready in the time frame provided on the contract.
    Here we go again.

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