New estimate of stadium costs revealed in letter to government
A multi-use stadium is part of a $1bn-plus redevelopment at Macquarie Point. The first detailed estimate of its cost can now be revealed.
Politics
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The proposed Macquarie Point Stadium could come in just under the $775m cost estimate, according to a report provided to the state government this week.
But the current costings include no provision nearly $200m of supporting infrastructure, fittings and fixtures required before the venue can host its first game, which critics say skews the cost-benefit case for the build.
A concept design estimate prepared by quantity surveyors WT was sent to Minister for Sport and Events Nic Street by the Macquarie Point Development Corporation CEO Anne Beach on Tuesday.
“We estimate the Design and Construction Cost at Concept Design Stage in the amount of
$774,905,000 (excluding GST) assuming an early works construction start in June 2025 and completion in December 2028,” it says.
The estimate includes $526m for construction, $176m for development costs, $5m for headworks and council fees, $7.5m for Macquarie Point Development Corporation project resourcing and $59m for escalation.
The figures are not further broken down and Ms Beach says they should not be considered final.
“It is important to note that cost planning is a dynamic process that will change throughout the design process as contingencies are allocated and detailed design is refined,” she said in her covering letter to the minister.
Originally costed at $750m in 2022, the 23,000-seat stadium’s budget was later revised to $715m before settling at $775m.
Premier Jeremy Rockliff has pledged a state contribution of $375m “and not one red cent more” towards the venue.
The federal government has promised $240m towards the entire Macquarie Point precinct — where total redevelopment costs now look to well exceed $1bn.
Independent member for Clark, Kristie Johnston, pursued the government for the cost estimate in parliament and said a lot of costs associated with the stadium were being excluded from the considerations of its economic benefit.
The KPMG cost-benefit analysis projects the stadium and AFL team will generate benefits totalling $516m for an investment of $753m — an economic return of 69 cents for every dollar expended.
“What we know from the very high-level data that they have released in that letter, is that there are things excluded that are essential for the stadium to be able to function,” she said.
“Quite clearly, they’re taking the optimistic view of costs, not a realistic view of costs.
“Even with these optimistic cost assumptions, it’s losing money. The situation is likely much, much worse.”
The estimate does not include $14m in kitchen and food and beverage fit-outs, audio-visual services, the provision of wifi, cellular phone services and scoreboards.
It also excludes the $6.8m public address and CCTV system, $7.8m for LED ribbon advertising on the fences, the venue control room fit-out, information technology and computing equipment.
And an estimated $174m in “whole of precinct” costs so far revealed are not counted in the analysis, including a northern access road estimated to cost at least $33.9m, a bus plaza estimated to cost $16.2m and a pedestrian and cycling bridge costed at up to $54m, a multistorey underground carpark and the Goods Shed relocation and fit-out.
Our Place Hobart spokesman Roland Browne said the cost of the stadium was escalating.
“In claiming the stadium cost is $775m, the government has badly misled us,” he said.
“With GST, the estimated cost of the stadium is actually $852.5m. It is unaffordable.
underground car park.
“This government cannot manage projects, big or small. The modest Bruny ferry upgrade — originally $7.5m — has blown out by over 100 per cent.
“Cancel the Macquarie Point stadium and build houses there.”
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