Redland gives $100M Olympic venue green light despite no feasibility costings

A bayside council has given the green light to a $100 million Olympic whitewater venue, despite claims it might cost customers as much as $160 a ticket to use, sparking calls for the state to release financial documents.

The whitewater venue at the Beijing Olympic Games in 2008 has closed, with the site now vacant. Picture: Howard Morland WikiCommons

A bayside council has approved a $100 million Olympic whitewater venue despite the state government keeping costings secret and no details on how much ratepayers will be slugged.

Redland City Council voted on Wednesday, May 15, to allow the Olympic whitewater venue to be built on 5ha of council land at Birkdale after the state government in March required its confirmation of continued support in writing.

The council support added weight to findings from an Olympic Sport Venue Review, chaired by former Brisbane Lord mayor Graham Quirk in March, which said the project had a “sound financial model and strong legacy outcomes”.

Already, five contracts, totalling $1.86 million, have been awarded for the Redland Whitewater and Wyaralong Flat Water Centres project validation reports.

Two venues are being considered if the 2032 Games decides to host a whitewater event. Picture: The International Olympic Committee Feasibility Assessment. February 2021

The state government said the vote confirmed the council’s commitment and continued support for the Redland Whitewater Centre.

A spokesman said a Project Validation Report would be completed this year before being presented to state and federal governments ahead of any final investment decision.

The content of the validation report would be released as part of any procurement process after final investment decisions were announced.

“The independent Sport Venue Review found there was a compelling case for the facility, highlighting its sound financial model and strong legacy outcomes as a regional attraction for Redlands, which was also supported by peer reviews,” the state spokesman said.

The council also voted to allow chief executive Andrew Chesterman to manage negotiations and execute any new agreements or documents on behalf of the council as a venue partner.

The vote proceeded despite the state government still not completing two mandatory financial studies — a validation report and a gateway review, both expected to detail costings.

It was the first major test for new mayor Jos Mitchell, who voted against allowing the project to proceed but lost.

Mayor Mitchell claimed there had been a lack of financial information given to residents and ratepayers and the “vast majority” of feedback she had received did not favour the project.

She said she still had questions about the venue’s legitimate viability and whether it was “the best fit” for Redland, which she said needed an indoor sports venue.

“The issue I still have is an issue of priority and vision and identifying community need,” she said.

“I think it needs further investigation.”

The council, which voted six-five to proceed with the Olympic venue, made its decision after hearing from General Manager Economic Development Chris Isles.

The Birkdale site is owned by Redland council with the Olympic venue to be paid for by the state and federal governments.

Mr Isles told the meeting that feasibility reports had been conducted but remained confidential and a validation report had been under way for 18 months.

He said there had also been input from Queensland Treasury, the Office of Olympic Delivery Authority, independent consultants hired by the state government, along with a 60-day independent review by former Lord mayor Graham Quirk.

He said the venue was “not only feasible but cashflow positive” and would generate a profit which future councils could reinvest to reduce operating costs for the rest of the Birkdale parkland precinct.

Figures used by the council to justify the venue’s viability were based on council’s own financial study.

“There have been at least five independent groups who have all reached the same financial position that this project can, and does, offer a sound financial position,” he said.

“Whether that’s for the swimming lagoon or for watering the grass and mowing the lawn … without the Olympic venue … the parkland would be an ongoing burden to maintain … and without it the costs would have to be covered by rates.”

Mr Isles also dismissed concerns about using water from an underground aquifer and said extensive bore testing had been done to determine the best location for the venue without impacting the water table.

Redland council was shown geophysical maps detailing the water table under the Birkdale site. Picture: Pacific Geotech Pty Ltd February 2020

Opposition to the venue on council land was also outlined, with the meeting told it would be cost-prohibitive for residents with estimated ticket prices of $160 for 90 minutes based on admission prices at a similar venue in Penrith, now closed because of toxic algal outbreak.

Opposing councillors Paul Bishop and Paul Golle told the meeting there were sporting projects already in the pipeline that were of higher priority including a $200 million sports complex at Redland Bay along with requests for basketball, AFL and rugby league facilities.

Cr Bishop said he was also concerned about the ongoing costs that future ratepayers would have to bare in maintaining the venue which would become a council asset.

It also came after submissions to a Senate hearing in August opposed building a new venue, when there was an Olympic whitewater facility already in Penrith.

Community groups Redlands2030; Koala Action Group; Carp; and Birkdale Progress Association

Following the meeting, angry lobby groups called for the state government to reveal the costings, which they claimed could start at $100 million.

Community Alliance for Responsible Planning spokesperson Lavinia Wood said five councillors voted against the project, in line with residents’ wishes.

“Today’s narrow six-five decision shows Redland council remains strongly divided and in great turmoil on the issue of the whitewater venue,” she said.

“It’s time for the state government to end this sorry saga and move the 2032 Olympic whitewater events elsewhere.”

The council’s decision will be included in the state government validation report which will be sent to state Cabinet and the federal government before investment decisions are made later this year.

Originally published as Redland gives $100M Olympic venue green light despite no feasibility costings