The original artist’s impression of the completed Icon Complex, as seen from Liverpool St.

THE Hobart City Council has refused to say for how many years the developer of the Myer complex will receive a concession on rates, despite the details of similar arrangements being public.

The Hobart City Council’s latest annual report shows the value of the rates concession in 2018-19 to Icon Complex developer E Kalis Properties Pty Ltd was $362,409 – up from $154,416 the previous financial year.

A council spokeswoman said the value of the remission increased significantly because of a revaluation of the property by the Valuer-General.

The rates paid by the developer are capped based on the value of the property as at January 18, 2012, limited to CPI increases.

Preliminary works on the site began in 2014.

The council’s general manager Nick Heath said the rates cap was in place for “a defined period”.

The Mercury understands the period to be 20 years, making it the longest deal of its kind still in place.

Hobart City Council general manager Nick Heath. Picture: MATHEW FARRELL

The council voted to provide incentives to department store giant Myer and developer Kalis in October 2010 to help get the ­development off the ground years after the former building burnt down.

$14M DEAL TO SECURE MYER STORE IN CBD

The council also still makes cash payments to Myer of $875,000 each year over four years if the store’s gross sales are below an agreed figure, which in the first year was $50 million.

Up until January this year, two instalments of this money have been paid according to the annual report.

The final stage of the Icon Complex is set to be finished early next year, with the opening of the Crowne Plaza Hotel.

Developer Sultan Holdings Pty Ltd also receives a significant rates remission from the council for its Wellington Centre development, which was completed in 2013.

The company received the highest value of reduced rates of any ratepayer last financial year at $383,210.

The reduced rates agreement for this development is in place for 10 years, with two years remaining.

Hobart Lord Mayor Anna Reynolds said rates concessions for developers are “not appropriate for a growing city”. Picture: NIKKI DAVIS-JONES

Lord Mayor Anna Reynolds, speaking as an individual councillor, said rates concession agreements for private developments were not on the current council’s agenda.

“These current deals were made at a different point in history — in my personal opinion, these kind of arrangements are not appropriate for a growing city,” she said.

“With the city of Hobart developing and growing it is essential that we maintain a strong rates base to provide infrastructure.

“I am pleased that we are looking to receive full rates from UTAS as part of our new agreement with them. I also expect there may be other contributions to city infrastructure as part of their city move.

“This is the kind of arrangement I personally think we need with all city developers in Hobart in the future.”

The annual report also revealed the total allowances paid to all elected members for 2018-19 was $512,823.

The total expenses paid was down significantly on recent years.

All expenses claimed – including telecommunications, fuel and travel – for all elected members was $46,196.

For the previous financial year it was $124,033 and in 2016-17 it was $217,114.