Marion Council pulls plug on $30 million ice arena plan

Marion Council has shelved a proposal from an Adelaide developer to build a $30 million recreation centre with two Olympic-size ice rinks and a rock-climbing wall in the city.

An artist’s impression of the Playford Arena iceskating venue. Artwork: Supplied

• Marion on ice as developer names preferred site
• Chilling out as icy fun on its way to Marion
• Plans to build multi-purpose Playford centre

Marion Council has shelved a proposal from an Adelaide developer to build a $30 million recreation centre with two Olympic-size ice rinks and a rock-climbing wall in the city.

At a confidential meeting last week, the council decided not to proceed with an Expression of Interest for the land on Sturt Rd after considering a business case from Cruachan Investments, which fronts a consortium trading as Ice Rinks Adelaide.

The move comes after Playford Council pulled the plug on a $40 million ice arena plan for Elizabeth from Ice Rinks Adelaide earlier this month, after concerns of exposing ratepayers to financial risks.

Mayor Kris Hanna said the Marion proposal had left a number of questions unanswered.

“The proposal for an ice rink at first sounded an exciting venture but after reading the detailed business case, the council was unconvinced,” Mr Hanna said.

“We gave the developers about six months to prepare the business case and sought extra information from them before we formally considered the proposal.

“The council resolved to not proceed any further with the proposal and to end the EOI process for the land on Sturt Rd.”

The EOI for the 8910sq m block of under-utilised land at 262 Sturt Rd – next to the Club Marion sporting and community centre – was released in June last year.

Two proposals were received with the council deciding to move to a detailed business case with the ice skating and rock climbing complex in August last year.

Ice hockey siblings Michelle and Jake Riley flank rock climber Koa Weber and figure skater Madi Dempsey at the Marion site which had been earmarked for a recreation centre. Picture: AAP/Keryn Stevens

Marion Council received Cruachan Investment’s business case last month.

In its report tabled at the March 12 confidential meeting – which has now been released publicly – the council administration said “three fundamental questions to the viability of the proposal” had not been adequately addressed by Ice Rinks Adelaide.

These “gaps within the business case” were: equity arrangements, traffic and car parking issues and “details of the assistance needed to make the project viable”.

“It is recommended that council cease the Expression of Interest Process,” the report said.

“It should be noted that Cruachan Investment Pty Ltd has been informed throughout the process that council reserves its right to cease the process at any stage of the EOI.”

Mr Hanna said the council would “take a fresh look at the potential for the site”.

A statement on the Ice Rinks Adelaide website last week read: “The City of Marion on Tuesday 12 March decided not to proceed with the Marion Arena. We are now focused on securing an another location for our Inner South Arena.”

Under the proposal, Marion Arena would have had two Olympic-size rinks – one for ice-skating and another for sports such as hockey and curling – and capacity for between 600 and 1200 spectators. It was hoped construction of the centre would have started in 2019 and be completed by mid-to-late 2020.

Ice Rinks Adelaide approached Marion Council early last year with a proposal for a sporting and recreation hub on the site.

In May 2018, the council called for expressions of interest from all sports or community groups interested in buying or leasing the site and developing it for recreational use.

Two proposals were received and Ice Rinks Adelaide was selected behind closed doors.