A Townsville man is attempting to rally the locals to raise $4.5 million to restore and revive the city’s legendary, beleaguered and burned Great Northern Hotel, despite skeletons in the closet.
The grand Federation-style Hotel opened in 1901, offering large public meeting spaces, dining and 36 accommodation rooms. It was built by Wilson Hart & Company, prompted by plans for the nearby railway terminus, requiring first-class accommodation close to the commercial centre of Townsville.
In 1992 it was added to the Queensland State Heritage Register.
But in 2015 an internal fire caused significant damage and it was closed. A 19-year-old man was later arrested in relation to the fire.
Closed for more than 11 years, on 11 September this year emergency services were called to another, bigger fire at the old hotel. Crews battled the blaze but the roof and internal floors collapsed. What remains of the structure has been deemed dangerously unstable.
In less than two weeks a website has been launched posing a community-led program to rebuild, restore and reopen “one of Townsville’s most recognisable historic pubs”.
The Great Northern Hotel 1000 proposal is led by former hospitality owner Shawn Andersen, who manages two accommodation properties in town and recently posted on social media an idea to “obtain control” of the troubled hotel, restore and modernise it, and “reopen it as a successful hospitality business”.
Community members are being asked to express if they are interested in potentially securing either one or two $4,500 stakes in the company. The notion calls for 1,000 participants, for a total raise of $4.5 million.
If deemed viable the entity would go on to seek suitable commercial finance and engage an operator or lease the business, as part of a scheme to “rebuild and restore the Great Northern as faithfully as reasonably possible, subject to heritage advice, engineering, planning, building, fire-safety and commercial feasibility”.
The EOI form also asks potential participants if, should the 1k investors be found and independent assessors give it the tick, Townsville City Council and the Queensland government should each consider contributing $1 million to revive what it suggests is a community resource.
The survey has found 78 per cent of respondents in agreement for council, and 82 per cent for the state funding.
Only days into the concept, the GNH1000 site has garnered 113 approved supporters – 105 from within Townsville – and a total of 94 parcels of $4,500, amounting to $423k of community capital, although this is not yet binding.
There has been further support offered by volunteers, contractors, suppliers, and people offering professional expertise including hospitality and commercial experience.
Andersen stresses the proposition is not a request for money and the pledges do not represent money raised. He says he is simply probing if support exists to get an indication of what people think ahead of appropriate legal and financial structures being established “if the concept ultimately proves feasible”.
He suggests that if a thousand locals opt in he will assemble a suitable team and investigate accordingly, and speak with the government bodies.
Of course, he will also need to approach the owner – A Gabrielli Constructions, owned by managing director Adrian Gabrielli.
Andersen explains he hadn’t yet approached Gabrielli as he wanted to first establish if there was community support for his idea. However, Gabrielli has reportedly indicated he is interested in discussion.
This move has not helped speculation over Andersen’s bona fides.
Mid-2022 he reportedly pled guilty in Townsville Magistrates Court to charges of false declaration by a debtor and making an untrue claim or proof of debt, following a protracted time insisting an associate of his The Bank nightclub owed him $127k.
The prosecution described the offence as requiring a certain amount of “planning and deliberation” as what was deemed to be a lie was maintained for two years. The court imposed fines of $6,500 for the two charges, plus a 30-month good behaviour order.
For his part, Andersen says he was attempting to save his business and ultimately lost both a substantial amount of money and his marriage, eventually pleading guilty and accepting the orders “to prevent further pain in my life”.
He offers he is now considerably more experienced and careful, and a “commercially disciplined businessman because of what I have been through”. He also claims he was prepared to disclose relevant aspects of his history if GNH1000 became a genuine possibility.
Investment contributions would not be paid to him personally and a professional legal and accounting structure would be established, with funds held through a regulated arrangement and significant decisions subject to proper governance and a qualified advisory board.
He expects to be part of the board, but says he “would not have unilateral control”.
No closing date has yet been set on the EOI.
