Northern Australia Story – The Stadium Of Economic Hope And Hyper Corporatocracy

Northern Australia pioneered as leaders turn a sod of sacred soil in the nominal coliseum of the “Capital of North Queensland”

The federal, state and local intergovernmental leaders moved on Townsville bearing the greatest gift to the local people in decades, a “shovel turning” media event to mark the beginning of the construction phase of the North Queensland Stadium.

Coined during a Regionalisation Summit in Northern Australia, the media throng was on hand with three levels of Australia’s government to announce the start of construction of the new 25,000 seat North Queensland Stadium, and new North Queensland Cowboys home ground.

Although the event may seem insignificant to the contemporary observer looking back at the context of the colossal impacts of colonial settlement of Australia, in the context of Australia’s industrial, commercial and social pioneering ventures, the stadium is literally groundbreaking!

Leaders have been presiding over the past ten years of investments. So this event marks to the people the return of hope, of much-needed jobs and business stimulation. And to the representatives in attire turning the chrome-plated shovel, it is the beginning of beneficial trust created by design thanks to their political forebearers.

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Bring cash flowing again. Most publicly and poignant to the politicians, is the taking and staking of their immortality whilst claiming for their respective parties, the credit and spoils as the pioneers of Northern Australia’s future capital city district in Townsville.

Yet the idea of capital cities based on population and exclusive geography of a constitutionally recognised state or territory brings no credence for a political culture erring and wearing in light of the symbolic, cultural and socially equal and fair identify of minority rights.

In the name of a federal government inspired innovation in the Smart City Deal (SCD) and State government inspired capital of North Queensland proposal symbolising sustainable growth infrastructure in the CBD Revitalisation and Waterfront Priority Development Area (WPDA), the jobs-creating and confidence-boosting stadium project was announced with the fanfare it warranted.

Never mind about the 129 contributors out of 273 individuals and organisations in the Townsville community that had overwhelmingly supported an integrated cultural and entertainment solution in the form of an integrated stadium and entertainment centre, including convention centre for Townsville’s waterfront.

Instead, the mass media; television appeal and influence of the National Rugby League (NRL), who contributed $10 million to the project, coupled with the unyielding belief and sunken finances of the largest patriot investor in the CBD and leader of the NRL franchise in Townsville, it was seemingly inevitable that the lower economic impact stadium option for the City was chosen.

Moreover, representation of the local hard working community leaders, most of whom were absent from the sod turning ceremony, were in the majority of cases not acknowledged or unnoticed.

Thanks to the example of the actual immortal great leaders in history, this oversight of self-actualisation leadership cannot be understated. Because an observable measure of one’s effective leadership today is benchmarked. Getting things done without too much fuss or bravado, and where recognition is warranted, the team is usually credited with the honor and recognition first and foremost.

Yet in this instance, the team are intergovernmental politicians; the Mayor, Premier’s representative and Prime Minister’s representative with principal contractors on hand for comment. But hang on, where was Prime Minister Mr. Turnbull, or Premier M. Palszsuzus and the ceremonial head of state, Governor General Mr. Cosgrove?

After all, this symbolic region of Northern Australia is the capital of the “Townsvillean” territory and patriotic domain of the North Queenslander and NRL Premiership winning team of the North Queensland Cowboys.

So the only way to promote the achievements of political policy and decision making is to make sure every funding gift to the electorate counts, making all the hard work worthwhile and hopefully bringing about enough communication coverage to cause voters and consumers to bring repeat business or reelection.

Well, this will happen at the opening of course, but the pioneers are the ones remembered in the history books long after the grand opening, especially as the opening will be about sport not about the few pioneers who turned the original stone.  

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But what, when and by whom has the hard work being done to get the stadium job-stimulation project to the “sod turning” stage? Because none of the original pioneers of the capital of Northern Australia and the stadium investments were part of the sod turning dignitaries of the stadium project on the 20th August 2017.

As a long time NQ Cowboys fan and supporter, I stood loud and proud cheering in the grandstand at Olympic Park in Sydney when the boys won the 2015 grand final. It was one of the best days of my sporting experiences. I like the Cowboys. They are my team.

It would be fair for me to say, that Johnathan Thurston’s (JT) speech and his direct appeal for the stadium funding from the federal government was the greatest leadership moment that sealed the remaining $100 million funding deal. The hard work of the premiership team at the Cowboys that year was a major contributor. The power of winners, sport, the media and digital technology was an awesome combination.

Considering the broader community appeal of JT clearly documented in the recent Pure Projects Strategic Review, the stadium funding speech was just as influential as the Premiership itself. Not the least because of the mass attention it brought to North Queensland. But also for the fact the people have said JT is the “most inspirational leader” they know in Townsville.

Afterall, JT is a great leader with a humble, dignified, self-accountable and never quit persona in the community and he yielded the Prime Minister’s commitment for the remaining $100 million.

Also, the long standing Chairman of the Cowboys, Lawrence Lancini must take the greatest credit for the successful funding campaign being involved at nearly every strategic stage of community leadership.

It was sad that neither Mr. Thurston or Mr. Lancini were present at the “sod turning” event, even though the Cowboys administration was represented. The other major contributor, not present was Anna Bligh, former Premier of Queensland and current CEO of the Australian Banker’s Association.

But the day was all about the intergovernmental initiative. Individual politicians representing their claim to the higher moral ground. Whilst the federal and local government continued to sell an innovation policy in the form of the Smart City Deal. The state government forwarded their campaign for infrastructure and sustainable economic growth policy across local government and planning, headlined by “more jobs, more contracts”.

Is this really what our political leaders are doing and does this reflect the desires and the active will of Townsville and North Queensland population?

Interestingly, the Queensland Department of Infrastructure, Local Government and Planning reported on 28th September 2015 in its Public Notification Submission Review Report into the WPDA that infrastructure and sustainability ranked as the two lowest priorities, while innovation didn’t rank anywhere.

So in the most robust and rigorous consultation undertaken in recent years of Townsville’s key strategies for economic growth, Transport, Culture & Entertainment and Vision were the top three subjects for priority consideration by the collective community leadership of Townsville in 2015.

And furthermore, the highly regarded Pure Projects Strategy Review in 2017, recommended both the CBD Revitalisation and Waterfront PDA was too narrow in scope and that the Strand, Radical Bay, Rowes Bay and Castle Hill should be included in the capital of northern Australia master plans.

Yet the inter-governmental representatives identified the stadium as a jobs growth generator due to the Smart City Deal and critical infrastructure, sustainability, local government and planning initiatives of the State government.

How can all levels of government in spite of the active and overwhelming majority of individuals and organisational leaders in Townsville, including local government, find themselves so far apart on priority and orderly economic stimulation and infrastructure developments?

The North Queensland stadium has been regarded as the signature project of the City. It defines the biggest amount of government expenditure on an individual project in local history. Equivalent to the funding announced for the duplication of the water pipeline to Ross River Dam from the Haughton River, which was committed to by the current Premier even before the Taskforce interim report was produced.  

As the North Queensland stadium takes shape, property investors will contemplate various certainties and uncertainties in the overall property market and economy of Townsville.

Unlike the macro economic factors such as cash interest rates, commodity prices, employment and business confidence, for which there is plenty of commentary already, TREN’s local network of investors and experts will lay out a series of articles on the context and cases of management and leadership that are impacting and causing sustainable growth.

Effective investors would agree, the management of governance as with the governance of corporations is the first and last line of defense against risk and first and the last opportunity for returns.

TREN will articulate the triggers and situations that have shaped the priorities for Townsville’s growth and recession, misjudgement and brilliance in recent history and describe how the current and future crop of “disadvantage or victim leadership” presents unfavourable certainty in striving for the sustainable property market of the future.

Image: Local, State and Federal Government Ministers and Stakeholders stand ready to turn the
first sod of soil on the new $250 million North Queensland Stadium Photo: State government

Becoming a technology driven global economic player is what Townsville is poised for but the intelligence and sensitivities of cultural identity leadership are by and large being imported or being cycled out through a rotating academic and political pipeline.

The concept of spatial experience could be illustrated this way. The economy is represented by a modern roller coaster going up and down, at speed, providing thrills in the good times and fear in the bad times, driven by free market conditions and technologies.

Meanwhile, the political leadership of the city and state, still riding a turn of the century carousel, is experiencing a less volatile environment. Still in motion but has an unrealistic feel of the gravity effect and unexpected twists and turns of an economy capable of more. But it is constrained by a mechanical instrument of a “central pivot” or “south-east Queensland-centric” power source.

Queensland and Townsville’s leaders are likely to repeat the cycle of scarcity thinking and quick returns based on election schedules, and an express mentality by leaders of self actualisation inspired more by social status and empowered by social infrastructure investment. It’s better to be lead the believed then it is to humbly lead the aggrieved.

As the 13th largest City in Australia, Townsville is one city that has a “boom and bust” story in its current generation. It resides in a developed democratic nation that has not experienced a recession in 25 years.

North Queensland pioneering a new territory, it is being dominated by a formula of progressive management of state and local governance, an addictive federal and state social infrastructure investment economy, and an authoritative academia leading the latest generation of corporatocracy organisations.

The apparatus of which is Townsville’s own unique brand of the corporatocracy, which is seeking to justify derivatives revenue independent from taxpayers, thereby attracting increasingly disruptive and even hostile influences to the eco-system of political power, profiteering and strategic advantage.

But the public connection and relationship between local incubators and leadership academies are being stifled by “groupthink” structures and command and control systems. The governance climate is cultivated by a low hanging fruit appetite of “wait and see, take what we can get” attitude now driving the “capital of Northern Australia” brand.

The Townsville City Council has recently restructured its organisation and is acquiring its senior executive capabilities under the leadership of CEO Adel Young, who is presiding over the largest reform of the local government authority. Two hundred management and support staff have exited the local government authority. However, the planned restructure and public announcement estimated 144 positions will be made redundant, impacting heavily on the compliance associated processes across it community engagement and infrastructure departments.

With a line of sight of leadership influence over the past decade, and a recalibrated local government administration slowly taking place that must operate under the reforms of the progressive Labor-centric local government reforms, this Story of Northern Australia – The Stadium of Economic Hope and Hyper Corportacy series should bring an insightful perspective on the Townsville property market, and perhaps, bring to light some of the factors that are constrained by the scarcity economics model.

More broadly, the economy, organisational and social structures impacting the dynamics of the market will come into sight, aiming with fortuitous intention to stimulate and build discussion from a unique insight of the atmosphere of the challenges and opportunities being faced by the “capital of Northern Australia”.

Of course, the intention is not to mask the positive outcomes that have been achieved across Townsville and North Queensland, nor to purposefully draw attention to negative perceptions as might be a factor of vested investors or operators in the property supply chain. Instead, the series aims to deliver candid, transparent and honest observations to the critical tenants of the collective interests in the region.

Be sure to subscribe to TREN eMagazine to get your TREN exclusive copy of “The Story of Northern Australia – The Stadium of Economic Hope and Hyper Corporatocracy”.

TREN will seek to publish further chapters over the coming months.

Subscribe here for your exclusive free copy and to take this opportunity to add to our research and share your own observations.

Further reading:

Kirwan – Top Price Property of the Week – 1 Crown Close – $655,000

Commercial property in Townsville found gasping for owner-occupiers

Hotel managers slam Townsville Council over Double Tree exclusive

Agricultural and water security boost for North Queensland; Hells Gayte Dam $2.2 million feasibility study 

Magnetic Island – Top Price Property Winner of the Week – 3-5 Endeavour Road – $520,000

Durie Is Out! Gay And Green Thumb Poster-Boy Snapped Duplicity Of Premier On Townsville Water Security

Guide to selling a luxury home

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Disclaimer

Townsville governance organisation structures damaging to investment pipeline

Townsville Enterprise acting vicariously for the Townsville City Council, is boasting about the significant economic stimulation that the Adani project, rail and port upgrades, military deal with Singapore, solar energy projects, stadium project and the "Smart City Deal" are going to inject into the local economy.

Although a noticeable inflow of jobs could occur during the construction of these mostly industrial and infrastructure projects, the majority of the stimulus and ongoing gross domestic product (GDP) will occur in districts outside of the Townsville City boundaries.

Adani's coal operations are located in Central Queensland, west of Mackay, and the port is located in Bowen as part of the Whitsundays district. Even the proposed military base for the Singapore Army is located in the Charters Towers district, not Townsville.

Although Townsville can claim Adani's head office in the city, once again relatively low ongoing jobs and employment is derived from the mostly management and administration positions.

With the anti-coal movement alive and kicking, including Australia's banks, advocating against Adani's coal interests, these jobs could still be under serious threat.

Moreover, the "value add" criteria codified in the Smart City Deal, is the formula from which all future majority federal and state government funding is linked.

Private capital investments in projects outside Townsville's economic zone such as Adani's coal mine, would not be worthy of critical federal and state infrastructure stimulation in the Townsville rate payer districts.

The Smart Cities Plan and "City Deal" contract was signed by Council, State and Federal Governments in December 2016. Because of this Darwinian decision, Townsville's civic policies are being hijacked by individuals career agendas within the Townsville Enterprise leadership focusing and advocating on projects outside the "value-add" parameters of the City Deal.

The Townsville Enterprise focus is "Townsville North Queensland" and not the Townsville districts, meaning its real focus is on council districts across North Queensland rather than an exclusive agency of Townsville City Council and the ratepayers of the City. In addition, the Townsville City Council is seemingly incapable of formulating or delivering commercial enterprise initiatives.

The lack of real funding for Townsville districts in the recent Dumb federal budget could wipe out property owners, is evidence of the very convoluted organisational model of Townsville Enterprise, Townsville City Council and various advisory boards being established to direct Smart City initiatives.

If Townsville Enterprise is allowed to continue a convoluted agenda, in light of new smart technologies in government, energy, transport and manufacturing, it will be economic suicide for Townsville district property owners and residents.

Unless restructured urgently in line with Smart Cities funding eligibility, international entrepreneurship and global enterprise investment pathways, Townsville districts will be neglected in future federal budget initiatives.

Townsville Enterprise CEO, Patrica Ocallaghan provided a statement to the Townsville Bulletin confirming the federal budget did not address any of the priority initiatives identified in their pre-budget wish list, but pledged to continue working with the federal government on the Smart City Deal.

Property owners and rate payers are being fooled, as the current disjointed governance organisational framework is cementing Townsville as a social welfare dependent district, instead of fostering major industrial and infrastructure projects with the federal funding criteria set by the "City Deal" contract.

This federal budget in the context of the "City Deal" contract, is driven by "value-add" initiatives and it is biting property owners where it hurts the most, with reduced cash flows and valuations. This market and government dysfunction could force further value decline in property investments.

With this fresh analysis undertaken by TREN, the property owners and stakeholders of Townsville North Queensland can forge a conclusive understanding of the impacts from the federal budget from local real estate investors and owner-occupiers. 

Do you have an opinion about the federal budget? The TREN community wants to hear your story.

Turnbull federal budget could wipeout Townsville property owners

Image: Cartoonist, Dave Pope

The Turnbull-Morrison federal budget could wipe out many property owners who are hanging on to their investment properties in the Townsville district by the skin of their teeth, enduring sustained cash flow and equity declines over the past 5 years.

Not to mention the property owners (investors and owner-occupiers) whose fate has already been determined, falling victim to the steepest economic and property decline in financial terms in local recorded history.

Many are local residents that have lost their jobs or businesses, foreclosing with the banks or filing for bankruptcy. The highest occurrence of bankruptcy across the entire country has been experienced in Townsville.

Significant numbers of property owners are living from hand to mouth constrained by the debt imbalance. They are incurring losses from which negative gearing and a reliance on taxation refunds are their only salvation.

Despite the Property Council of Australia's (PCA) influence on this budget, the threat at the next election of a more extreme left-wing policy of reducing or eliminating negative gearing, has become a haunting possibility as the country strives for more revenues.

Green and left-wing extremism are likely to swing ordinary voters against the rise of Trumpism and Turnbullism. More anti-business and anti-corporate campaigns like Getup's malicious campaign against Adani coal is an ideology with heavy domestic and international support.

Although a seemingly senseless policy to any economist, a change of government, could be the armageddon for property owners if the Townsville economy continues to dance so far out-of-step with national economic trends and federal fiscal policy makers.

Also, Townsville governance organisations threaten the investment pipeline of the City in the short term, as the Turnbull government has a deep thirst for the "City Deal" mega data deposits from the Internet of Things (IoT) system. Under the contract by Mayor Jenny Hill, the "no data, no deal" is setting Townsville Enterprise up for restructuring or imminent redundancy.

The federal budget announcements targeting big-ticket infrastructure and taxation concessions using superannuation and negative gearing for managed funds to address housing affordability in Sydney and other capital cities is a dumb policy. This is really irresponsible on Townsville North Queensland given the recent and ongoing pain and suffering.

Despite Townsville Enterprise foolishly appealing for more new housing development to meet projected population growth, in other words increasing supply, North Queensland and Townsville districts do not need a housing affordability policy at the forefront of the public agenda when business investment and jobs are what is needed the most.

Instead, a more prudent priority for Townsville district is to seek microeconomic solutions such as the Tax Increment Financing (TIF) scheme, as proposed by the PCA. This is backed up by the Northern Australia Development Facility, with strong and robust relationships, with leading boards and executives of large enterprise both domestically and internationally.

Apart from births, migrations, and immigration, the focus on value-add industries securing property for development in Townsville's Council district, is Townsville's only leverage under the "City Deal" contract, to attract significant federal and state government investment.

The New Residential Land Sales and Supply chart clearly shows the surplus land stocks in Townsville districts.

In his address to the media, the Treasurer Scott Morrison said, "it's not a silver bullet – nor is it intended to be", referring to his federal budget and the media anticipating a fix all budget.

Ironically, this is exactly what this budget is. A silver bullet for property owners being put out of their misery if these measures strike to achieve more housing affordability in a market plagued by asset value declines.

Unemployment rates in Townsville are at 11 percent and the broader economy of regional Australia is hurting from the downturn in mining activity and substantial increases in energy prices.

The centre-point of the budget, being that it addresses housing affordability, could move the sentiments of distressed property owners and buyers to protest and disrupt the political will of what is perceived to be a puppet's play.

This federal budget reaffirms the concerns of local representatives that the Federal and State governments are capital city-centric. They are driven by votes instead of delivering "a fair go for all Australians", which Mr. Turnbull promised in his preamble to this budget.

The Turnbull-Morrison federal budget will go down as the most politically safe budget in coalition history. In fact, many commentators are saying it is a labor policy budget with terms like "centralist budget" and "not traditional liberal".

The Liberals are fully funding social programs such as the National Disability Insurance Scheme (NDIS) and increasing taxes on the banks.

The banks, of course, have already said they will pass on the cost increases to every mortgage holder in the country. As the big four banks have done in recent times, they are well within their rights to act independently to raise their interest rates and fees.

Once again for Townsville North Queensland, the people are being asked to pull up the smelly socks of bad government leadership. Meanwhile, a liberal government slips into their fresh uncharacteristically labor-like federal budget cotton socks to attract votes from the capital cities and the left-wing media establishment driven by ratings and polls.

Even financial and taxation professionals are labeling the budget as a "good strong budget" as there are no additional personal or small to medium size enterprise (SME) tax increases announced. Superannuation by and large has been untouched. 

Just as the people have grown to expect smoke and mirrors from a political funding announcement, the Turnbull-Morrison duo is being socially responsible and hitting the big end of town just like the Labor opposition policies were proposed to target.

By design or coincidentally, it is likely Bill Shorten has been taken out of play in this budget. Not only in policy terms. But it is effectively the "Bill Shorten execution budget".

Shorten's electability, not just as an opposition leader but Labor candidate in the seat of Maribynong, has taken a direct hit with 127 hectares of defense land in his own electorate in Victoria being made available for 6000 new affordable homes under this budget.

Is Mr. Shorten's political career finished? Mr. Turnbull would hope so, if the cold shoulder he gave him in front of the media the morning of the budget announcement is any indication.

Putting the political undertones aside, what if Sydney, Melbourne or Brisbane had an unemployment rate of 11 percent with a median house price of $337,000 for houses, and $272,000 for units? Would the federal budget be focused on housing affordability? Absolutely not!

The House and Unit Prices chart below demonstrates the decline of values and stable affordability environment in Townsville districts. 

Economic stimulation with tax breaks, grants, and infrastructure investment spending in the regions would be high on the agenda. But not this politically and socially sensitive government.

Its focus is on self-preservation. Obviously seeking to secure the next election with capital city and regional Victoria and New South Wales voters, who are set to benefit from the new $20 billion rail corridor from Melbourne to Brisbane.

With a consolation prize of relatively minor funding, allocated to repairs and maintenance to the Bruce Highway and disaster relief from cyclone Debbie, nothing positive from a Townsville perspective can be said about this budget.

When we look at the median property price for rentals in Townsville, it makes the federal budget's focus on affordable housing look like a joke.

For example, a three bedroom house in Townsville is currently being rented for $290 per week. This is a decrease in the housing price of 6.5% in the last 12 months, with the housing price already starting from a low base and dropping consistently from nearly $400 per week in 2012.

Considering the massive uncertainty in the superannuation sector over recent budgets, the mobile and rental accommodation being so affordable in regional Australia, the elderly are anticipated to snap up the $300,000 per person superannuation top-up option in this budget.

Once again in a Sydney context, this policy might make sense. But in Townsville, adding more supply to an already distressed housing market is like igniting high octane fuel in a fire of despair.

Unless local governments and marketing experts in Townsville and North Queensland target the elderly in the capital city markets by offering comparable or upsize value strategies such as a clean, affordable and healthy tree-change lifestyle, this budget measure is more likely to be detrimental to Townsville's property market.

The likely result is more housing supply as our elderly residents will seek to cash in. This breeds more unhappy owners because the further downward pressure will be put on median house prices.

In addition this budget also, the federal government will establish the housing finance corporation (HFC). From July 2018, the HFC will offer long-term, low-cost finance to community affordable housing providers. Investors are assured to get rental payments from the government with direct deductions from welfare payments transacted to investors.

It's the $1 billion National Housing Infrastructure Facility (NHIF) that is of particular concern in the hands of an inept local government being charged with developing business cases, to win funding and then administering the funds through community housing contractors.

Desperate for new home developments that attract increased revenues, council rates and economic stimulation, the NHIF program in Townsville will have Mayor Jenny Hill and Townsville Enterprise salivating at the mouth.

However, this social housing initiative will be disastrous for incumbent property owners in Townsville based on the accumulated evidence from the NRAS (National Rental Affordability Scheme). The now abolished Labor government NRAS program was a disaster back in 2013, its legacy is still being felt across the City.

Then, NRAS was the catalyst for the sustained fall in rental prices and subsequent fall in sale prices across the City. This combined with softer global commodity prices and carbon tax policies, Townsville's property economy has been impacted by catastrophic losses ever since.

Furthermore, affordable housing investors are being offered a possible 60% discount on capital gains if they build new housing projects with the condition of pricing the accommodation below market prices to low-income tenants managed by a community housing provider.

This is NRAS rebadged! All be it with a 40% less capital write-off, but with a more favourable incentive to control rental cash flow directly from welfare payments or employer direct contributions.

NRAS created a false economy and drove free market prices down just as the combined housing affordability initiatives are now likely to do.

The NHIF is based on the UK model aiming to assist local governments to develop new homes and apartment blocks. For Townsville North Queensland, the combined measures of NFIC and NFC are unfavorable with property prices already falling substantially over the past 4-5 years. NRAS Mark II is what this federal budget is delivering.

But that is not all, a separate Trust is being established by the federal government to encourage both foreign and domestic investors to invest in affordable housing in Australia. 

On one hand, foreign investors leaving properties vacant are being penalised $5,000 in capital gains in this budget, while on the other hand, the government opens up a larger pie for taxation write offs by directing their attention to public housing infrastructure.

In principle, this is a smart measure if it were applied to foreign investors directing their capital into regional manufacturing and new enterprise initiatives that create "value-add" to Townsville's enterprise infrastructure. 

Knowing the influence of Townsville's infamous property development moguls with land to burn (as shown in the New Residental Land Sales and Supply chart above), and a local council habitually grovelling for new subdivision applications, the depth and intensity of the housing affordability measures in the federal budget are bewildering.

To drive the nail in the coffin even further, property owners who claim travel expenses on their tax returns for inspecting, maintaining or collecting rent on their rental properties will no longer be allowed after July 2017.

Consider the fact that over 40% of Townsville's total housing supply are rental properties owned by investors, many travel to Townsville to check on their properties.

With current property yields declining and debt-to-equity ratios increasing, the federal budget is indirectly targeting the 3rd largest contributor to industry output in Townsville's $30 billion economy, this being the "Rental, Hiring and Real Estate" sector at 9.4% (Source: REMPLAN: Dec 2016). This is an industry contributing $2.8 billion per annum to the Townsville economy.

Under prudent management rationale, this budget would normally bring opposition kicking and screaming. But not a whisper from the incumbent Labor representatives in all local, state and federal seats across the Townsville districts.

Patricia O'Callaghan, Townsville Enterprise (TEL) CEO, confirmed in a statement to the Townsville Bulletin that the budget did not address any of the priority initiatives outlined by TEL in their pre-budget wish list. Yet she praised the Smart City Deal initiative and pledged to work with the federal government. 

The property owners and investors of Townsville North Queensland have been left with more questions than answers from this federal budget. With this fresh analysis undertaken by TREN, the property owners and stakeholders of Townsville North Queensland can forge a conclusive understanding of the impact from the federal budget on local real estate investors and owner-occupiers. 

Do you have an opinion about the federal budget? The TREN community wants to hear your story.

Property development millionnaire resigns from Townsville Enterprise Board

 Image: Lawrence Lancini, ex-Board Director, Townsville Enterprise

Townsville's business and commercial arm of the City Council has announced Mr Lawrence Lancini, reportedly in the top 100 richest Queenslanders and current Chairman of the North Queensland Cowboys, NRL Club has resigned from Townsville Enterprise after 11 years serving on its Board.

Mr Lancini was appointment as the President of the Property Council of Australia in 2016, which is the main reason for his decision to leave the Board official reports have claimed.

Managing Director of the Lancini Group of Companies, the company's staff profiles describes Mr Lancini by saying; "Laurence Lancini commenced his construction business over 30 years ago. He started as a house builder based in Townsville and progressed over the years to grow his construction business to a statewide operation covering all aspects of property development."

The current Chairman of Townsville Enterprise, Mr Gill said; "Lawrence Lancini is a visionary who knows how to get things done. He has played an instrumental role in helping secure commitments for some of North Queensland's most game changing projects and initiatives. He will remain an important stakeholder and friend of our organisation."

Mr Lancini offered high praise for Townsville Enterprise colleagues and the leadership of the City. "Our region and city has seen enormous growth in various sectors of the economy with many of these initiates lead by Townsville Enterprise.", he stated.

The city of Townsville's performance and its business and government leaders have come under enormous pressure over the past few years. The economy has struggled with high unemployment and high vacancy rates, significant falls in median dwelling prices, and a sluggish commercial sector.

Losing such an influential businessman and leader in the governance of the City's business and commercial agenda is a significant loss to any civil administration apparatus.

Mr Lancini has transitioned with grace expressing full confidence and support of the Board of Townsville Enterprise and the City. "I have confidence in the current management structure and I know the organisation will do well into the future.", Mr Lancini said.

Given the emphasis on stability by the Townsville Enterprise Board in their press release, the statements come with an undertone of sensitivity aimed at reassuring the City and its stakeholders that Mr Lancini's resignation is business as usual.

However, Mr Lancini has played an instrumental role in the strategic direction of Townsville's brand, infrastructure and facility developments sponsored by governments and the private sector over multiple decades.

The North Queensland Stadium, a controversial focus for economic stimulation for the City, was a significant achievement for the directors of Townsville Enterprise who engaged with all levels of government to gain political and financial support for the development.

The stadium development indirectly serves the real estate investment interests of investors in the City and the broader community. The Lancini Group and its partners are key stakeholders in various property developments in the city precinct, benefiting substantially from the commercial contracts that have flowed.

The majority of these developments have now completed, including the City Lane, City Arcade and City Point which includes various retail, food outlets, Woolworths and state government office for the Department of Emergency Services.

Also included in the list of Lancini developments is the 9 stories commercial tower at 420 on Flinders. Delivered as part of the state government subsidised CBD Revitalisation Project. 100 percent of the upper floors of the 7000sqm building is occupied by the majority state-owned, Ergon Energy.

198 Ogden Street which includes a McDonalds, planned service station and 300m2 of retail space, is also a Lancini Group development project.

Over the past 4 years, multiple development plans have been commissioned by the Council at arm's length with Townsville Enterprise. Questions raised about the balance of power on Walker Street, under Mayor Jenny Hill, has manifested perceptions of unsubstantiated conflicts of interest with elected representatives on government funded programs and board members' indirectly benefiting from the commercial enterprise.

The effectiveness and functions of Townsville Enterprise have also come under heavy criticism as the City has struggled to respond with economic stimulation measures after the Global Financial Crisis.

Shifting costs and revenue streams that are driven by climate change policy, advances in technologies and globalisation, and the subsequent fall in commodity prices impacting the mining industry and most of Queensland's regional economy, have been significant factors.

But the "build it and they will come" back to the CBD strategy hasn't delivered the outcomes that many people, particularly in the retail, office and residential sectors had expected with commercial vacancy rates, accommodation occupancy rates, unemployment and dwelling prices showing unfavourable results over a sustained period.

Yet if you talk to CBD retailers and shop owners, they are optimistic about the future and can sense a small pick up has occurred in city trading revenues.

With the federal government's Developing Northern Australia initiative, lead by a dedicated federal Minister for Northern Australia, Mr Canavan, and the associated governance Boards including the Cooperative Research Centre (CRC) for Northern Australia - residents and some councillors are again questioning the relevance of Townsville Enterprise.

Sources inside Townsville City Council suspect the resignation of Mr Lancini is an indication of further resignations to come on the council and state-sponsored boards and committees. As the federal government implements a more vertically integrated funding system, backed by smart technologies, different skill sets and mindsets from local leaders are necessary.

Given the climate of economic uncertainty, dysfunction and rampant waste of taxpayers funds on bodies that are being superseded, the federal government is seeking urgent momentum on their innovation and infrastructure policies. On the eve of a state in 2018, the whispers of more resignations from inside City hall seem to be as credible as they come. 

And then to top it all off, Townsville City Council announces they are engaging the services of Pure Projects. Led by Mr Williams and tourism Australia identity Mr Morris OAM, to develop yet another master plan for the City, demonstrating a new federal doctrine has arrived in the region causing the Mayor to "throw the baby out with the bathwater".

The list of current studies, plans and schemes are extensive as shown below:

• CBD Master Plan (2013)
• Townsville City Plan (2014)
• Townsville City Waterfront PDA Scheme (2015)
• Waterfront Promenade Master Plan (2015)
• North Queensland Stadium Master Plan (2016)
• North Queensland Arts and Cultural Scoping Study (2015)

But the seemingly cordial and smooth exit of Mr Lancini, despite the unimpressive record of the Townsville City Council and Townsville Enterprise over the past decade, must be projected to appease the only positive matrix in the City's economic report card, that of business and investment confidence.

"I thank my fellow Directors and Townsville Enterprise staff for the respect and friendship they have all shown me. It is a pleasure and a privilege to work along side such as great team.", Mr Lancini said.

Townsville Enterprise CEO Patricia O'Callaghan said, "he will continue to play an active role in Townsville Enterprise initiatives focusing on mentoring business initiatives and developing the local business community."

A further announcement about the details of the initiatives on which Mr Lancini is expected to participate has been anticipated by Ms O'Callaghan in her internal statement to the membership of Townsville Enterprise.

Recruitment for a new Board Director has already commenced, the Townsville Enterprise press release announced.