The Mount Gambier Community and Recreation Hub will progress to construction in coming weeks following the completion of the tender process and execution of the building contract, with BADGE Constructions awarded the head contractor tender.
City of Mount Gambier Mayor Lynette Martin OAM said the signing of the contract is an important and exciting milestone towards the transformational project.
"With facilities that will cater for the entire community and provide a significant contribution to the economy, we are very pleased to have finalised the procurement process and look forward to construction commencing on site soon," Mayor Martin said.
Mount Gambier deserves this, it is going to be a game changer for our city and after 30 years of our community asking for a facility of this type, now is the right time to invest in this project and finally get it started.- City of Mount Gambier Mayor Lynette Martin OAM
Following the competitive tender process, the contract value has been updated to $57.3 million of which $15 million will be funded by the Federal Government and $10 million from the State Government. A minimum of $22.9 million will be injected directly back into the local economy throughout the build.
Acknowledging the increase of the project price since the original estimate, Mayor Martin said $39.1 million was based on the intermediate design in 2018.
"The market response to the tender process has now determined the true build cost based on the detailed design.
"We've listened to input from the community and included refinements that have improved the hub's functionality, flexibility and that will reduce whole of life costs while staying true to the community's needs and aspirations," Mayor Martin said.
"Industry-wide changes have occurred since the estimated cost was established, including changes to the building code and building fire safety regulations and of course COVID-19 has significantly increased the risk profile of the project. The updated figure also includes the necessary refurbishment of the 50 metre outdoor pool.
"We have made decisions to invest heavily in sustainability measures such as a fully electric heating and cooling system, supplied by solar power that, while increasing the capital cost, will reduce the whole of life costs - for example, the solar capacity will enable the electricity to be cost neutral within seven years of the expected 50 year lifespan of the facility."
The additional cost will be funded by Council through borrowings at a low interest rate over a period of 20 years.
"Council is in a very good financial position to withstand the additional cost and service the loan, particularly with access to very low interest rates, and we remain committed to not increasing rates beyond the 4.5% outlined in the Long Term Financial Plan.
