A cost blowout of $4.5million has hit plans for major sporting precinct redevelopments in Bega and Pambula, forcing Bega Valley Shire Council to reconsider its options on delivering the projects.
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New sports hubs for Bega and Pambula have been on the drawing board for some years now, the masterplans initially endorsed in 2016.
Then in a celebrated announcement in February 2019, state government funding for the projects was committed by the then Member for Bega Andrew Constance to the tune of $8.5million for the Bega Sports Hub and $4m for Pambula Sports Hub.
However, due to escalation in construction industry costs since that announcement, BVSC now estimates a significant funding shortfall for the projects.
Take a look at the project plans here
In February this year councillors met to discuss funding challenges of the Bega project in particular and how a redesign was looking at options to reduce the overall cost.
Despite the design review reducing the approximate cost of the redevelopment by $1.4million, the total project estimate was still some $3million over the available $8.5m budget.
Council staff reported it was also expected there would be a funding shortfall "in the order of $1.5million" for the Pambula project if all works originally included in the scope were to be funded.
At this week's council meeting, May 18, councillors have been presented with two options by staff.
Given the commitment remains that both projects proceed, there's a suggestion that a request be made to the NSW Office of Sport that the current total funding commitment be all redirected to the Bega project to get it underway, with further funding applications to be made for Pambula.
Council staff also flagged an option of proceeding with the Pambula project - as development approval had already been finalised - while continuing to advocate for the shortfall in funding for the Bega project, " noting this would risk loss of a large portion of the existing overall grant allocation".
Staff are recommending the first option to councillors while also recommending council encourage sporting and user groups to seek their own funding grants via whatever channels they have available to help with the overall cost of operations.
While the current funding commitment from the NSW government comes without impost on council, BVSC noted that it it were to make further applications through the NSW Office of Sport, it was likely council would need to contribute 50 per cent of the grant amount requested.
Council meets at 2pm this Wednesday, May 18.
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