Northern Suburbs Community Recreation Hub budget blows out to $43.6m, up from $15.6m
A major Tasmanian recreation hub has suffered a massive budget blowout and will be delivered for nearly three times its initial cost. WHAT WENT WRONG >
Launceston
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A proposed recreation hub in Launceston’s northern suburbs has blown its budget by nearly three times, the Mercury can reveal.
The Northern Suburbs Community Hub at Mowbray, funded by all levels of government as part of the 2017 Launceston City Deal, was forecast in early 2021 to cost just $15.6m.
However, according to a statement issued by Sport and Recreation Minister Nic Street on Thursday, it would now be delivered at a cost of $43.6m – 179.48 per cent over budget.
The state government’s initial contribution to the project was about $500,000, with the federal government providing the lion’s share of funding, at $15m.
However, last month’s budget papers revealed that the state government had been forced to tip in millions extra.
A spokeswoman confirmed in a statement that they had ultimately invested $27.5m in the project – a 5400 per cent increase from its initial contribution of $500,000.
As recently as March last year, it was thought there was still a chance of delivering the project for as little as $22m.
Asked whether Tasmanian taxpayers were getting value for money, and whether the state government was confident there would be no further cost overruns, the spokeswoman answered both in the affirmative.
The spokeswoman said that the cost blowout was due to “the scope of the project changing over time”.
The recreation hub would feature indoor multi-use courts, to address citywide shortage of particularly basketball courts, as well as rock climbing, weightlifting and boxing facilities, and a cafe, among other amenities.
Mr Street, describing the hub as a “transformational” piece of community infrastructure, said that the tender for early works would be released on Saturday, with the early works to commence by August.
A main works tender package is expected later in the year with construction to start in early 2024 and be finished by mid-2025.
Work continues with the key stakeholders to finalise the design for the new multipurpose facility.
“The hub will improve access to community, sport, and recreation infrastructure and programs in the northern suburbs as well as give locals a new facility they can be proud of,” Mr Street said.
“The facility will include new indoor multi-use courts to address the shortage of indoor sporting facilities in Launceston.
“It will also include a designated gymnastics area, rock climbing, weightlifting and boxing facilities, outdoor activity areas, cafe and spectator seating, change rooms, offices, meeting room and administration facilities, and onsite parking.
“More than just a sporting facility, it will also provide fun, recreational opportunities for local people and a place to connect with others and local organisations.
“It will deliver programs for young people and the local community, and provide employment, mentoring and personal development opportunities for young Tasmanians.”
It has been a long slog to progress the hub, which will be located at a former industrial site at 316–320 Invermay Rd, Mowbray. The Mercury previously reported that delays had been incurred due to the need to remove asbestos roof sheeting.
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