I refer to Nawal Maharaj's open letter to the Minister for Local Government, Shelley Hancock, in which he states that the estimated office relocation costs will be $40 million. Your editor's note does not tell the whole story.
Council may well spend under $20 million on the fit out of the building. However, when anyone buys a house other costs come into play and our council is no exception to that.
Council paid $7 million to purchase the property. It had to borrow that money and therefore has interest to pay. It also has to borrow a further $8 million to complete the conversion which is likely to cost, it says, around $18 million. There will be interest to pay on the borrowings over 20 years which, according to Australian Securities and Investment Commission at an interest rate of 4.5 per cent, will amount to approximately $7 million.
We're now at a total of approximately $40 million which is what Mr Maharaj has written.