State Government refuses $5 million grant for Blackwood Community Hub, as design options released
Mitcham Council has released two options for the design of its long-awaited $20 million Blackwood hub, but the project has received a huge financial blow. SEE THE PICTURES
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Mitcham Council plans to build a long-promised $20 million community and entertainment hub in Blackwood have been dealt a significant blow.
The council was optimistic the State Government would match a $5 million Commonwealth grant commitment for the project.
But those hopes have been dashed, with documents revealing the State Government has rejected a funding request for the 2600sq m, three-storey building, incorporating a new library and community centre, at Waite Street Reserve.
The decision is a surprise, particularly given Premier Steven Marshall addressed Mitcham councillors last month, behind closed doors, urging them to “spend, spend, spend” to assist the state’s economic recovery from coronavirus.
Public consultation on the project has started after the council – on the casting vote of Mayor Heather Holmes-Ross – this week endorsed two design options, costing $20.2 million and $22 million.
Mitcham plans to demolish a senior citizens club on Young St as part of the project and has already given in-principle support to selling the land housing the current Blackwood Library and adjacent Karkoo nursery site on Main Rd.
Mitcham’s long-term financial plan has $10 million allocated to the hub.
The council’s estimated debt for 2026/27 is now $68 million – up from the $44 million it estimated last year and well up on its current $23 million debt.
The hub, said councillor Andrew Tilley, was something the council could ill afford.
He told a recent meeting the council was looking at a net financial liability, or debt-to-equity ratio, of 117 per cent.
“Most councils are running at an operating debt around 50 per cent,” Cr Tilley said after the meeting.
“Only Playford Council will be running at a higher debt level than Mitcham and that’s not a record to be proud about.
“This (hub) is considered to be an untimely and expensive choice by the six councillors that voted against it.”
But supporters of the development say the hub has been discussed for many years and is an essential component of helping to revitalise Blackwood’s heart.
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A council spokeswoman said Mitcham would continue to lobby the State Government for a $5 million contribution to the hub.
“Council is confident that the State Government will contribute funding in order to fast-track this project to create jobs and drive the economy,” she said.
She said Mitcham’s increased long-term debt outlook took into account measures to support the community post-coronavirus, as well other big-ticket capital works such as the Flinders/City bikeway and Kingswood Oval clubroom upgrade.