Coffs Harbour Airport Enterprise Park budget blowout revealed

Costs on a publicly-funded airport development have blown out by millions in a belated revelation that has left councillors “stuck between a rock and a hard place”.

The construction cost of Coffs Harbour City Council’s Airport Enterprise Park development has blown out to $30m.

Coffs Harbour City councillors were left “stuck between a rock and a hard place” after hearing the cost of the Airport Enterprise Park development had blown out by $5.6 million.

A budget update put before councillors at Thursday night’s meeting revealed that the cost to build the 98-lot commercial and industrial precinct would reach $30 million.

“Councillors have been asking how the budget is tracking,” councillor Sally Townley said.

“I think it’s an unreasonable position to put us in – saying this has happened, it’s a big blowout and now we’re asking you to retrospectively approve it.”

Works on the major project, which was approved by the Northern Regional Planning Panel in 2017, have been divided into three stages.

The third and final stage is due to begin.

An artist's impression of the Coffs Harbour Airport Enterprise Park.

The report put before councillors states the cost increase is attributed to a number of issues which had arisen in relation to difficult ground conditions at the 43ha site and the need for additional fill.

It also states costs had increased in order to carry out works to relocate Telstra assets, which were not part of the original project.

According to the report, the bulk earthworks were estimated to cost about $1.5 million in 2019 – but this had since blown out to $9 million.

The project has been placed under a tight deadline to be completed by April 2022.

The deadline is a condition of grant agreements with the federal and state governments who are allocating $10 million each.

The council’s recent execution of a potential 99-year lease of the airport to Palisade Investment Partners has also come with a condition that the project be completed before being handed over.

Deputy PM Michael McCormack, Cowper MP Pat Conaghan and Mayor Cr Denise Knight turned the first sod in 2020.

However while councillors expressed frustration over the lack of communication regarding budget updates, they praised the quality of the development at the former “swamp” after a recent site visit.

A number of tenants are already setting up on site, including Coffs Harbour’s first ever data centre.

“What struck me was the quality of the project,” councillor George Cecato said.

“Did we go over budget? Yes we did. Would I have preferred being told earlier? Yes probably. But the quality of the final product is something that is going to make the city very proud for many years to come.”

Councillors voted unanimously to note the budget increase.

They also voted unanimously to award a contract for the final stage of construction, which will include the final 34 fully serviced lots and associated roadways and services.

Pending acceptance of the tender, the project is on time for completion in April next year.