Liverpool Civic Place: Project cost rises to $195 million in four years
Questions are being asked after a multimillion-dollar city-shaping development, half of which will be funded by ratepayers, has ballooned to close to $400 million.
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Questions are being raised over the cost of the proposed Liverpool Civic Place in Sydney’s southwest, which has blown out from $87 million four years ago to $195 million.
Liverpool councillor Gus Balloot has called for transparency over the figures, saying it was only fair for ratepayers to know why the cost of the project had ballooned.
The proposed mixed-use development at 52 Scott St has a total price tag of about $400 million, part of which will be covered by Liverpool Council, while developer Built Holdings will pay for the commercial elements of the project.
Construction was expected to begin mid-year, but the council has flagged a potential construction start in the second half of 2020 as it awaits the determination of the masterplan concept development application, lodged in December 2019, by the Sydney Western Sydney Planning Panel.
The council will foot the bill for its components of the project, which include new council offices and chambers, a library, community hub, childcare centre, council and public parking, and a civic plaza.
Meanwhile, the developer will cover the cost of a 24-storey tower with commercial, retail and education spaces, a nine-storey hotel or student accommodation building and parking.
Mr Balloot said the council’s contribution to the project had more than doubled since 2016 — from early figures of $65-75 million to $195 million.
While supportive of the project, he said ratepayers had the right to know the reasons behind the blowout and be consulted on whether the funds should be reallocated.
Mr Balloot said the council informed him the scope of the project had increased by 25 to 30 per cent and construction costs had also risen over the years.
But the Liberal councillor cast doubt over those explanations.
“If I looked at the scope of works it has increased, but it hasn’t doubled.”
He said construction costs had “plummeted” in recent years due to slowing demand.
“My understanding (is) that in today’s pricing or even last year, we know that construction has slowed dramatically and it’s becoming very competitive out there to construct most projects,” he said.
Liverpool Council’s acting chief executive Eddie Jackson said the council resolved in June 2016 to proceed with the project at an estimated cost of $87 million for council works, which included a new library, offices and chambers.
“After the 2016 council resolution, the project scope increased. In October 2018, council endorsed the revised scope and cost,” Dr Jackson said.
“Changes included doubling the size of the new city library, additional commercial office space and a 60-place childcare centre, as well as out-of-school-hours care accommodation.
“Since 2016, building costs in Sydney have been increasing at nearly 5 per cent per year and further expected increases have been included in the budget.”
Dr Jackson said the council had consulted the community twice on the project “with strong support expressed” for the proposal.
Mr Balloot said it was an “enormous” amount of money and the council should be transparent for the sake of ratepayers.
“It’s, at the end of the day, ratepayers’ money and we’ve got to be very cautious how and where that money is spent.”
Liverpool Civic Place has the potential to create up to 600 construction jobs in the city.