THE state government has promised to come to the party and discuss a $100million Redland City Council loan proposal to fix traffic congestion on Cleveland-Redland Bay Road.
Transport Minister Mark Bailey wrote to Mayor Karen Williams this week informing her his department would consider her offer.
Mr Bailey said officers from his department would be happy to discuss further the plan and get a better idea of the transport infrastructure priorities in Redlands.
He also wished Cr Williams "the best of luck" in pursuing her innovative approach to fast-tracking widening Cleveland-Redland Bay Road.
In December, Council wrote to Mr Bailey offering to lend the state $100million as part of a three-way deal in which council and private investors would fund upgrading the state road.
The request came after councillors ordered a report in December on "market-led options" which included the private sector. That report was due in January but is yet to be published.
In her letter, Cr Williams said council had been able to build up its cash reserves because of tough decisions made over the past four years.
She said the loan deal would fast-track upgrading state road "pinch-points" which needed urgent attention and were not on state construction priority lists.
She said any loan made to the state would be a contractual agreement and mutually binding so ratepayers would not be out of pocket.
Cr Williams said the cash reserves borrowed by the state government would be to fix the notorious stretch of road between Thornlands and Redland Bay.
Under the proposed solution, Redland City Council would borrow and use cash reserves to fix the road.
Redland council has posted three budget surpluses in a row and had an $18million operating surplus and a $134 million cash balance at the end of January.
“We are in an enviable position to provide a loan to the state and, at the same time, quarantine the value of revenue raised in Redlands by the state government through the hundreds of millions of dollars of stamp duty they will raise from major projects such as Toondah Harbour, Weinam Creek and Shoreline to repay the city through a legally binding financial agreement," Cr Williams said.
Her opposition counterpart Greg Underwood said if he won, he would not be lending the state government any ratepayer money and said any excess money should be used to pay down debt.
