‘Contingencies and risks have been factored in’ to new Civic Centre project

City of Darwin says it is confident the proposed $150 million redevelopment providing Darwin with a new civic centre and office tower is in alignment and compliance with the Local Government Act and other applicable legislation and requirements.

Artist impression new Darwin Civic Centre

City of Darwin says it is confident that the proposed $150 million redevelopment providing Darwin with a new civic centre and office tower is in alignment and compliance with the Local Government Act and other applicable legislation and requirements.

The council says contingencies and risks have been factored into the project plan allaying concerns and questions asked about any cost over runs and their impact on ratepayers.

A City of Darwin spokesperson pointed to the fact that the new Civic Centre project has been in planning for over four years, and the final procurement process had independent probity oversight in place to ensure all requirements were met.

“We are confident that the proposed redevelopment and associated infrastructure is in alignment and compliance with the Local Government Act and other applicable legislation and requirements,” the spokesperson said.

“As with all City of Darwin projects, contingencies and risks have been factored into the project plan and will be managed accordingly throughout the life of the project.

“City of Darwin’s investment of $77 million into the new Civic Centre is comprised of both reserves and external borrowings.

“The use of the $30 million in carparking reserves and $17 million in sale of land reserves is undertaken in compliance with the legislative and restriction requirements for these types of reserves.

“The use of borrowings for the new Civic Centre means that build costs are allocated across multiple future years and ensures intergenerational equity, reducing the reliance on current rate payer revenue.”

City of Darwin CEO Simone Saunders with Lord Mayor Kon Vatskalis unveiling the draft 2024-25 municipal plan at the Civic Centre, May 1, 2024. Picture: Alex Treacy

Opponents to City of Darwin’s new civic centre filed an application during the week in the Federal Court requesting the disclosure of council documents relating to the 21-storey, $150 million development.

The Federal Court application of disclosure was made by Darwin legal firm De Silva Hebron on behalf of Nourse Nominees; Liveris Nominees; Civitas Properties Pty Ltd, and Rapid Form Systems.

A member of the group said they were concerned that the project will cost more than the $150 million.

“The council has never answered what will it do if there is a cost over run?” they said.

“We want to know what contingencies are in place … will they levee rate payers or will they absorb it within their own financial mechanisms?”

Darwin Civic Centre. Picture: Country Solar NT

City of Darwin of Darwin says financially it is much better to have the new development now with running costs for the current building around $1.5m a year to keep it operational.

It says the new building will be more environmentally efficient and cheaper to run with one of the main challenges with the current building is that we have a price tag of around $19 million over the next five years just to keep it operational.

Originally published as ‘Contingencies and risks have been factored in’ to new Civic Centre project