Budget blowout: Hidden costs on iconic Kirra Pavilion makeover
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Council
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RATEPAYERS are being confronted with “significant and ongoing” costs as council faces a challenge to restore one of the Gold Coast’s most iconic beachfront surf clubs.
A report to council reveals the “strip out” former Pizza Hut area of the Kirra Pavilion has sparked an urgent budget review for the project.
The costings have been removed in redacted papers and council has rejected requests to outline estimates for the project due to commercial-in-confidence. The issue has been considered by councillors in closed session.
The Bulletin has learned the Kirra Surf Life Saving Club could be closed for four to six weeks to allow for repair works.
In the council report, officers wrote: “Despite the involvement of numerous city specialists including estimators, engineers and project professionals, significant latent conditions have impacted on costs.
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“That is the works required to have the building (the old Pizza Hut site) in a suitable condition to enable the commercial tenant access has uncovered several structural and compliance issues that require significant funding to meet statutory, regulatory and heritage requirements.”
Officers admitted much of the work was not visible until the strip out of the building started. Extreme levels of lead paint were found and asbestos had to be removed from the roof.
Council had already spent more than $300,000 on addressing structural defects, the report says.
The next stages of the project involved the roof being replaced.
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A council spokesperson told the Bulletin: “The refurbishment works at the Kirra Pavilion are expected to be completed in mid-2021, with the surf club to be closed for four-eight weeks.
“PTC Consulting Group was the successful tenderer to occupy this space as a restaurant. The costings remain commercial in-confidence and will be subject to the usual budget process.”
Area councillor Gail O’Neill said she hoped a four-to-six week closure was the worst case scenario for the club.
“We are hoping to reduce that (six-week) estimate,” she said. “The refurbishment of the building is well overdue. We have to get that right.”
The opening of a restaurant at the Pizza Hut site is expected to generate leasing revenue to help with the costs for council.
“It is going to cost us what it costs. We have to do this. I think it’s the right thing to do,” Cr O’Neill said.
She said the surf club was working with council and the contractors on negotiating the building time table, and the community had supported the project.
The Kirra Pavilion was built in 1922, replacing an old structure which cost just 30 pounds and lacked proper roofing.
The building was left devastated by floods in 1974 which saw much of its beach side completely destroyed.
The Pizza Hut moved into the complex in 1986 and its lease was not renewed in mid-2019.
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