Sunshine Coast Council’s Maroochydore city hall to cost $100m in budget blowout

Sunshine Coast Council’s new city hall that was touted as a catalyst for further development in Maroochydore will cost millions more than expected, a review revealed.

The “signature” Sunshine Coast city hall project at Maroochydore will cost ratepayers almost $100m after the project team discovered a budget blowout.

Sunshine Coast Council is proposing to add $20m to its Maroochydore CBD headquarters budget due to construction delays and because the original funds did not include furniture.

Last year the 10-storey building for 600 council staff was quoted to cost $80m for construction and fit-out.

A council report said delays to Caloundra’s $27.8m district library could help fund the increased spending at Maroochydore by reshuffling their budget.

It said this would prevent the council from having to borrow more money.

Caloundra Chamber of Commerce and Industry president Michael Shadforth said it was important the southern end of the Sunshine Coast received the funding it deserved.

He said the community had already waited years for the project.

“We have to be vigilant as a community to ensure Caloundra gets its fair share of spending,” Mr Shadforth said.

Sunshine Coast Council Mayor Mark Jamieson. Picture: Peter Wallis

“The library and art gallery at Caloundra are just as important to the Sunshine Coast as the CBD.”

Caloundra’s divisional councillor Terry Landsberg said the change to the budget was a “sign of the times”.

He said the library would still be delivered, however, later than expected.

A new schedule shows $10m will be spent on the Caloundra project next year, down from $23.5m, and the remaining $16.9m would be funded in 2023.

Councillors are expected to vote on the matter at a special meeting scheduled for Monday.

A spokesman said the $100m city hall project was a “catalyst for investment in the Maroochydore City Centre”.

“The development agreement with Walker Corporation is one very significant example of the value that could be achieved for the ratepayers from council’s commitment to this building,” he said.

VISION: An artist's impression of council's new city hall building in the Maroochydore CBD.

“This is a signature project that is part of building confidence, generating jobs and encouraging investment.”

The report showed an extra $4.7m would be needed with the council now recommended to take up levels eight and nine.

An extra $2.5m was needed for furniture and $3.5m due to delays in construction, supply shortages and challenges to retaining skilled tradies.

Council officers also recommended adding up to $7.8m to mitigate against further cost increases throughout the fit-out stage and due to volatility within the construction industry.

A council spokesman said the council was yet to finalise how it would use floors eight and nine.

He said the mayor, CEO, councillors and their staff would still be located on level four.

He said the Caloundra and Nambour projects were already delayed.

“The planning detailed design for the repurposing of the Caloundra administration building and development of the new library is already delayed so this recommendation will have no impact on that project,” he said.

“No funding is being withdrawn from the overall project budgets for the Caloundra Centre Activation Project and Nambour administration facilities.”

The project is being constructed by McNab Developments and is expected to be completed by November 2022.

The council document said the new budget was recommended after the project team completed a “comprehensive review” and identified the additional funding was needed.