SEVEN pages of spin from Freo�s chief executive and mayor and yet they still managed to avoid providing answers to questions about the Kings Square Business Plan.
This has dragged on for eight months, and all we get is more pages of dribble.
The only thing to come out of this latest smokescreen is that we can establish that they have fudged the Net Present Value (NPV) exactly as predicted.
A $97.5 million residual value for the building in 20 years becomes a negative $30 million NPV into a positive $4 million one. This is indefensible nonsense. Land appreciates in value with time. Buildings depreciate with time; buildings do not double in value.
Their explanation is full of confidence, but lacks competence.
Our chief executive and mayor cannot even be consistent with their assertions. They claim the present civic centre, which they are replacing, has a building value of zero.
The Queensgate Centre, which they claim generated $750,000 per year, has a building value of zero.
According to their own assertions, these two buildings should now be worth squillions. They directly contradict themselves.
These assumptions have been used to turn a negative $30 million NPV into a positive one. That�s $30 million of ratepayers� money down the drain.
Yet this discrepancy has been dismissed by Cr Sullivan as �academic�.
The question now turns to who made this assumption. Was it the City�s consultants who generated the business case or was it our mayor, chief executive or councillors?
If this assumption is not in the business case, then our chief executive and mayor have some serious questions to answer.
We have repeatedly asked for the business case to be made available, but it is �confidential�. This is not a confidential document, but it�s easy to understand why they �deemed� it to be confidential.
MARTIN LEE, Fremantle.