Lack of external funding lifts library relocation cost to $8.5m

The cost to ratepayers to develop a new library in Townsville has blown out by more than 50 per cent as council reveals the reason why.

The cost to ratepayers to develop a new library at Riverway has blown out to $8.5m.

But Townsville City Council says the main reason for the more than 50 per cent increase is a failure to secure grant funding that it had hoped to receive.

Construction costs have soared in Australia, up an overall 10 per cent in the past year.

“Council initially developed the Riverway library project design based on $5.5m capital funding from council’s 2021-22 budget and grant funding,” a council spokeswoman said.

“Council was unable to secure external funding towards the library but through reallocations in its 2022-23 budget was able to allocate a total of $8.5m towards the Riverway library project.

A view of the library construction under way in the Riverway Arts Centre.

“As with many projects across the country, council has had to allow extra time to procure contractors, materials and equipment in light of the pandemic. Work is on track for the Riverway library project to be complete in early March next year.”

Construction at the Riverway Arts Centre started recently with key work including internal and external demolition, wiring and airconditioning installations and wall linings.

The council will relocate its Thuringowa Dr library into the Riverway centre.

The centre has been controversial with federal MP Phillip Thompson last year saying the council had failed to keep the community abreast of issues faced in its reopening after being damaged in the 2019 floods.

The council had received $3.6m in state funding to develop a splash water park at Riverway but later gained approval to redirect that funding for repairs not covered by insurance.

Originally published as Lack of external funding lifts library relocation cost to $8.5m