DIFFICULT market conditions and expanded plans have been blamed for the inflated price of Kingston Council’s Mordialloc pool project.
The new pool will be built to replace the Don Tatnell Leisure Centre in Parkdale, albeit at a different site. The 2021 report received by council on the project costed the build at between $40 million and $50 million.
A detailed business case on the project has now been completed. It projected the actual cost of the new aquatic centre at around $79.2 million.
In addition to the cost of the build, council has executed an option deed worth $14.6 million for land at 1-7 Wells Road in Mordialloc to build the pool on.
Kingston Council CEO Peter Bean says that “challenging” market conditions and federal government funds to build a 50 metre pool instead of a 25 metre pool contributed to the increased cost.
“The $79.2 million project cost in the April 2023 council report includes the construction cost, plus additional costs over the life of the project, and consultants to deliver design, engineering, cost planning, probity, and project management to name a few,” Bean said
“The following factors led to an increase in the original project scope and cost – the 2022 Australian government election funding commitment of $20 million which included to increase the proposed 25m pool to a 50m pool, challenging market conditions in the construction industry due to high demand and supply chain issues for materials, and new and improved data to support a fully electric aquatic facility.”
Bean confirmed that the aquatic centre would be funded using more than $55 million in council borrowings. He told The News that “no existing council projects are impacted by the increased costs.”
An architect was appointed to design the project earlier this year (“Plans for new pool project progress” The News 15/2/2023)
The Don Tatnell Leisure Centre in Parkdale shut its doors at the beginning of 2020. Council chose to replace it at a new location due to major structural issues at the former site (“Pool demolition scheduled for next year” The News 21/12/2022).