The business case forecasts that the net cost to Council of operating the theatre complex will be $5.6 million a year, taking into account $2.1 million of depreciation and $2 million of interest on borrowings of up to $35 million.
The net cost to Council is in line with other large recreational facilities provided to the community.
For example, maintaining and operating the Cairns Esplanade costs in excess of $5 million a year, the Botanical Gardens $2.4 million, Barlow Park nearly $2 million – but that is what Council’s do – they provide quality recreational spaces, services and facilities for the community’s benefit.
How does this compare to the CEP?
The two projects are of significantly different scales, with capital investment for CPAC being $65 million compared to $154.6 million for the CEP. The net cost to council annually for the CPAC is projected to be $5.6 million compared to the forecast of $10.1 million for the CEP.
The operational assumptions underpinning the forecasts for each are also significantly different with the CEP based on a standard hire rate of $6,000 per day compared to $1,200 for the CPAC and a not-for-profit hire rate of $5,100 per day compared to $650 for the CPAC.