Claim AFL stadium, will cost $1.2bn as Premier draws ‘line in the sand’ on taxpayer funding

The state government’s proposed stadium at Macquarie Point will cost around $1.2bn — $450m more than current estimates, the proponent of a rival plan says.

General corporate box images. Proposed Macquarie Point stadium by SolutionsWon Group Picture: SolutionsWon Group

The state government’s proposed stadium at Macquarie Point will cost around $1.2bn — $450m more than current estimates, the proponent of a rival plan says.

Dean Coleman has rejected claims by Premier Jeremy Rockliff that taxpayers would be on the hook for $2.3bn if the Stadium 2.0 bid was adopted.

Mr Rockliff has pledged to cap taxpayer funding at $375m.

“If you have been correctly quoted, then you have been badly misled by your advisers,” Mr Coleman said in a letter to the Premier.

“We have advised you that the stadium component of our plans will be funded through a public-private partnership that will cap the stadium cost at $750m.”

Mr Coleman said the government’s plan to build the station for $715m ignored the actual costs of delivering similar stadiums around the region.

“All these projects have or are reporting square metreage costs of around $20,000 per square metre equivalent,” he said.

Stakeholder relations Paul Lennon and Managing Director of Stadia Precinct Consortia Dean Coleman at Macquarie Point. Picture: Chris Kidd

“Based on these costings it is clear to us that the true cost of building a roofed stadium to

accommodate 23,000 patrons at Macquarie Point will be around $1.2bn.

“Unlike the Stadium 1.0 proposal we can cap the cost at $750m because our other

components including the carpark, hotel and apartment complex contribute significantly to the

cost of the stadium.”

The contract signed by the state government in May last year requires a Tasmanian Government funding commitment to the stadium development of $460m: $375m in government funding and a further $85m through borrowings against land sale or lease for commercial uses.

It also confirms that the Tasmanian government will be solely responsible for all stadium cost overruns.

Speaking at the Crown Plaza Hotel, Premier Jeremy Rockliff stuck by the cap.

“We’ve been very clear about the $375m dollars which we are investing once,” he said.

Tasmanian Premier Jeremy Rockliff in Hobart after calling an election for March 23rd. Picture: NCA NewsWire/ Nikki Davis-Jones

“What this clearly says is that we’ve drawn a line in the sand $375m will be invested in the Macquarie Point Stadium bringing with it vibrancy that the investment here is brought through a combination of government and indeed, private sector interests.”

The AFL said its position has not changed.

“The AFL’s position is that a clear requirement of the 19th licence is that the team is conditional on a new 23,000 seat roofed stadium at Macquarie Point and that position was clearly reiterated by the AFL CEO when he appeared before the Tasmanian Parliamentary Committee last year,” the AFL said in a statement.

“We look forward to the unveiling of the club’s name and colours in March.”

Greens MP Vica Bayley said Mr Rockliff had sent as clear signal the stadium budget was going to be blown significantly.

“Having landed himself and the state’s finances in a sticky situation, and seeing the public backlash, now he’s trying to pretend the private sector will save the day by paying for the project’s cost blowouts,” he said.

“What a joke. What kind of investor wants to pour their money down the drain by putting money into a project that’s already over budget and running behind schedule?”

State’s stadium contribution could be capped

February 15, 5am

Premier Jeremy Rockliff has sought to neutralise the proposed Macquarie Point Stadium as an election issue by promising to cap the state contribution at $375m.

In his opening shot of the 2024 state election campaign, Mr Rockliff pledged a hard ceiling on Tasmanian taxpayer’s support — with any shortfall to be made up by the private sector.

The stadium is presently costed at $715m. The federal government has promised $240m towards the Macquarie Point redevelopment.

The stadium, and the state-based AFL and AFL teams which depend on it, are set to become a key issue in the state election campaign.

“I recognise that this project is not everyone’s cup of tea and that some Tasmanians would prefer that this money was spent in different areas,” Mr Rockliff said.

Tasmanian Premier Jeremy Rockliff press conference at The Tasman Hobart after calling an election for March 23rd. Picture: NCA NewsWire/ Nikki Davis-Jones

‘I also understand that there are concerns in the community that the final cost of the stadium could significantly increase, leaving Tasmanian taxpayers with a large, un-budgeted bill.

“Therefore, I have taken the decision that a re-elected majority Rockliff Liberal Government will cap Tasmanian Government capital expenditure on the Macquarie Point Stadium at the currently budgeted $375 million – and not one red cent more.

“Along with the Macquarie Point Development Corporation and Stadiums Tasmania, we will open private-sector investment options for the Macquarie Point Precinct to ensure the Government’s contribution to the project is capped.”

Mr Rockliff has firmly planted his support behind the government’s plan — saying he cannot back the unsolicited bid from a consortium headed by Dean Coleman and Paul Lennon.

“I note that in taking this decision, the taxpayer contribution will be capped at exactly the same amount as what is proposed but unproven by the proponents of the so-called Stadium 2.0 concept,” he said.

Macquarie Point Stadium 2.0 shown from above. Picture Stadia Precinct Consortia

“In fact, based on the information provided, there is potential for the Tasmanian taxpayer to wear the entire $2.3 billion cost of 2.0.

‘Meanwhile, the Macquarie Point Multipurpose Stadium will be capped at $375 million by the Tasmanian Government.

“The difference is that the Macquarie Point Multipurpose Stadium is well down the formal planning route, is written into the AFL agreement, and doesn’t face the multitude of additional challenges that the 2.0 concept does, including their vast civil and environmental challenge of digging out the Cenotaph Hill and using it to reclaim the Derwent River for foundations.”

Macquarie Point stadium artist’s impression. Image: Supplied.

The project is currently being assessed under legislation governing Projects of State Significance and will require a vote of the next parliament to proceed.

“I look forward to the Labor Party getting off the barbed-wire fence and clearly articulating whether they support the Stadium, or if they will kill it and our AFL dream should they be elected to government on March 23.

“Only a majority Liberal Government will deliver our own Tasmanian AFL team.”

Labor leader Rebecca White was grilled about her party’s support for the team on Wednesday.

“The Tasmanian Labor Party 100 per cent supports us getting our own team and that will not be put at risk under a Labor Government.

“But we can also see it is such a bad deal that Jeremy Rockliff has signed with the AFL.

“He failed to stand up for Tasmanians, he’s failed to get a deal for us that really protects Tasmanians’ interests and delivers a team.”

“A Labor Government would negotiate the deal with the AFL. It’s evident to everybody you can’t build a stadium at Macquarie Point for that price and in the timeline the Premier has said we can.

“I’ve been very upfront about this for nearly two years now. That Labor doesn’t think a stadium is the right priority for our state, we also don’t believe it can be built on that site, for that price and in that time frame.

“I think the AFL are also coming to realise that and I’m very keen to sit down and work with them to make sure we keep our dream of having a team.

“It would be pretty terrible of the AFL to rip that out of Tasmanians’ hands now.”

Originally published as Claim AFL stadium, will cost $1.2bn as Premier draws ‘line in the sand’ on taxpayer funding