InvestLogan lacked direction from its sole shareholder, Logan City Council, and it consequently lost its way.
That was the view of an advisor who ultimately recommended that the council-owned property entity close down.
The advisor, who spoke exclusively to MyCity Logan, has experience with a number of council-owned development and enterprise boards.
“These types of entity are generally set up for a specific cause, and that was the case with investLogan six years ago,” he said.
“But in that case the project didn’t go ahead, yet the entity did so with a broad brief.”
InvestLogan was set up to manage the development of Loganholme Tourist Precinct in 2016, which included a pre-approved application for an artificial surf park.
But that project was abandoned because Main Roads wanted to retain land for future roads.
The source suggested that investLogan then became an opportunity for developers to experiment with innovative developments, at ratepayers’ expense.
It’s not something denied by investLogan, whose website says its vision is to “return benefits to Logan City through property development and sustainable investments that stimulate and enable the city’s economic and social prosperity and wellbeing.
Chair of the entity Steve Greenwood said last week while he and the board were disappointed that council had decided to pursue a development approach other than through its “beneficial enterprise”, the board respects the decision and wishes the very best for Logan and its residents.
It won’t be the first time Mr Greenwood has seen a publicly-owned enterprise close its doors.
He was advisor to Ipswich City Council when publicly-owned entities responsible for the redevelopment of their city centre was knocked on the head.
In that scenario, the board comprised of directors of Ipswich City Council and councillors – not independently appointed directors as was the more-accepted approach employed by Logan.
MyCity Logan’s source, who was interviewed by an independent review of the investLogan entity, said a number of councils had employed extremely successful boards to manage projects, including Sunshine Coast which is redeveloping Maroochydore CBD.
Mr Greenwood pointed to the successes of investLogan, including its sale of the York building in Beenleigh for $33.5 million.
“The Board and staff of investLogan are immensely proud of the work that we’ve done, particularly the benefits that we have delivered to Council, ultimately for the greater good of everyone in the city,” he said.
“We stand behind our track record of achievement for Logan.”
The process of winding up investLogan will happen over coming months.
“A range of factors have contributed to this decision, including whether the purpose of Invest Logan Pty Ltd aligns with council’s strategic vision, challenging economic times, public interest grounds, financial and risk management performance, the entity’s objective and governance arrangements,” mayor Darren Power said.
Mr Greenwood said at council’s request, the organisation was exploring opportunities for short-term accommodation for Logan and had acquired a site in Springwood as the preferred purpose.
“We hope Council will see this project to fruition,” he said.
“It’s been a tough six years and we have achieved a lot for Logan despite hefty challenges including having our foundation project, the Loganholme tourist precinct compromised by land resumption, the period of interim administration of council, the absence of a formal shareholder statement of corporate intent, and of course the Covid years.
“However, we have always remained focused on benefits for Logan.’
