Fraser Coast councillors have their say on how $40m of funding for new facilities should be spent

In a historic vote, the Fraser Coast Council has approved a $94 million spend on a major project which will include its new headquarters, but not before a major debate.

Hervey Bay Main Street Site - Fraser Coast Council has made a monumental decision about the future of the Hervey Bay CBD, agreeing to proceed with plans for a major project which will come in just shy of $100 million.

Fraser Coast Council has made a monumental decision about the future of the Hervey Bay CBD, agreeing to proceed with plans for a major project which will come in just shy of $100 million.

Tenders are expected to be called in October 2022, construction to begin in early 2023, and moving in should begin in December 2024.

The project will include the council’s new headquarters on Main Street in Pialba, with claims the current Tavistock Street site is so inadequate staff around the region are working out of dongers that have no toilets or running water and the investment is what Hervey Bay needs for its future.

Forty million dollars was specifically allocated to the project via the Hinkler Regional Deal, but council would need to secure a loan of more than $50m to build the new facilities.

Mayor George Seymour said during discussion on the plan on Wednesday that an extra loan, depreciation and interest costs for brand new buildings in both towns (a new administration centre in Maryborough’s Kent Street is currently on the cards) could haunt the council and ratepayers for years to come.

“We’ll be paying off the loan for 50 years,” he said.

“The interest is over $300,000 per year and that possibly means a rate rise.

“Depreciation also has to go into the budget and that’s another $400,000, so interest and depreciation is $700,000. That means every single budgeting year we would have to find $700,000 for depreciation and interest costs. Then of course the principal repayments is another million.

“I know people in this room will be doing the budget in 5 years, 10 years, and it will be an unbelievable headache for them for rate rises.”

Councillor Jade Wellings took the floor to quiz the CEO on affordability for the new buildings.

“We can afford it,” said CEO Ken Diehm said in response

“We would have to go back and revisit and retweak our long-term financial plan and re-prioritise our projects.

“Our debt is the lowest it’s ever been.”

Councillor Wellings added the conditions at council’s current buildings weren’t suitable for staff, including in portable buildings.

“We have staff sitting in dongas, some without running water or toilet facilities,“ she said.

“Our capital program, our operational budget and our long term financial sustainability all needs to be considered as a whole, not project by project.

“So, no, this doesn't mean a rate rise as Mr Mayor suggests.

“No rate rise can be attributed to one decision or one project.“

The motion was put to a vote and carried in favour 9 to 2.

Cr David Lee said the functional brief outlined plans for a much larger building than originally envisaged to ensure it met the needs of our growing population for decades to come, and acted as a catalyst for further economic development and business investment.
“Council is partnering with the Australian Government through the Hinkler Regional Deal to breathe new life and opportunities into the Hervey Bay City Centre,” he said.

“In developing a new Hervey Bay Library and Council Administration Centre incorporating a Disaster Resilience Centre, we want to create an iconic building that sets the benchmark for business, investors and developers.
“The library and Council administration building will be a central civic hub where individuals, professionals and families can come to learn, network, socialize and benefit from Council services.
“The building will also include a new Disaster Resilience Centre, empowering Council to deliver a coordinated frontline response leading up to and during natural disasters and crises.”
Cr Denis Chapman said the increased scope for the building meant increased costs, while COVID-19 impacts on the supply chain and building price rises had also impacted on cost estimates since the Hinkler Regional Deal was first announced three years ago.

“The current Hervey Bay library has a floor space of 1685 square metres, which is too small for our population now and doesn’t meet Australian and Queensland library building standards,” he said.
“The new library will be more than double this size at 3650 square metres with a range of modern, community spaces to ensure we can cater for our growing population over the next 20 years.

Hervey Bay Main Street Site - Fraser Coast Council has made a monumental decision about the future of the Hervey Bay CBD, agreeing to proceed with plans for a major project which will come in just shy of $100 million.

“Council has also decided to combine the library and administration centre in the one building, to bring more Council staff together from multiple sites into the one building, and to integrate parking with the new building.
“Using innovative design principles, the new Hervey Bay Library and Council Administration Centre incorporating a Disaster Resilience Centre will maximise the available space to benefit all users for decades to come.
“While more work needs to be done as part of the detailed design phase, it is estimated the total cost of the Hervey Bay City Centre redevelopment project will be just over $100 million, with $40 million being provided from the Australian Government through the Hinkler Regional Deal.”
Cr Jade Wellings said bringing hundreds of Council staff together from multiple sites into the one building would help provide more efficient services for the community.
“Council wants the Hervey Bay City Centre in Pialba to be the city’s primary destination for commercial activity, cultural engagement, education and social recreation, and the establishment of a new library and Council administration building will help achieve that goal,” she said.
“A City Centre Master Plan is in the process of being finalized while there will be significant work done to prepare a transport and traffic management strategy as we build a better city centre and civic precinct in the heart of Hervey Bay.”
After the detailed design is complete, Council anticipates calling for tenders for the building works by October 2022, with construction starting in about March 2023 and the new building is due to be completed by December 2024.