The Yarrawonga Library, Events and Performance Precinct was initially planned to be completed by May but has remained an empty site for months.
Yarrawonga’s leading infrastructure projects, the Yarrawonga Library, Events and Performance Precinct and the Yarrawonga Multisport Stadium are “case studies in how not to approach capital projects” according to the Commission of Inquiry into Moira Shire Council with the stadium under internal review.
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The 179-page Commission of Inquiry report into Moira Shire Council gave damning evidence against council’s handling of both projects stating the library project was “initiated without any fully costed business case or site assessment” and a business case was commissioned for the stadium project but its assumptions are now in serious question.
The projects, which were also council’s flagship projects, had several years of toing and froing before final decisions were made and funding was sought however both developments went substantially beyond their original cost estimates as well as having serious design deficiencies.
In April 2019, the initial costing of the library redevelopment was $5 million. In February 2022 the estimated project cost was $6.7 million and is now understood to be in excess of that figure.
The Yarrawonga Library, Events and Performance Precinct will proceed but not to the timeframe as originally proposed.
Photo by
Emma Prior
Throughout the planning process, council found themselves at loggerheads with the Yarrawonga Community Action Group (YCAG) who rejected the demolition of the Yarrawonga Community Hall.
While YCAG took council’s motion to demolish the hall to VCAT, the inquiry report stated that council took advantage of new planning provisions limiting the appeal rights of community members to issue itself in effect with a demolition permit for the community hall.
“The permit was issued on June 16, 2021 to Shepparton based consultants acting on behalf of the council,” the report states.
“The permit application was exempt under the new planning provisions from notification and third-party appeal rights. The proposal was advertised only to adjoining owners and no sign was erected on the site. The former community hall was demolished and the site fenced off from the public.
“Demolition of the community hall is cited as an achievement in the Council’s 2020-21 Annual Report.”
The inquiry report also stated that council had a pre-determined position with the library project and did not meet its prudential obligations under the financial management principles of the Local Government Act.
“Issuing itself a permit via an agent to demolish the Yarrawonga Community Hall whilst an appeal was underway at VCAT showed its determination to pursue its preferred option and its contempt for the democratic and lawful rights of those community members who opposed it.”
Despite the Moira Shire website citing that the library development would be complete by May 31 this year, the Commission was advised that as of December 2, 2021 only $1 million had been spent on the library development.
Initially the multisport stadium, which is to be constructed in two stages with the option of a third, was projected to cost $9.9 million.
That figure has since blown out to close to $17 million with consultants estimating a project cost of $16.9 million including $10 million for Stage 1.
The Yarrawonga Multisport Stadium construction will now come under internal review.
From the outset there were different views within council about the project with the report stating that one councillor thought the project was a costly "Taj Mahal", that council was "just going through the motions", and that "it would never be built".
The costs of the project have been a focus of the council’s attention and discussions throughout the project.
In June 2021 council received $2 million as part of the 2021 Victorian Local Sports Infrastructure Fund. Earlier that month council were also successful in securing $7 million in low interest loan funding to deliver stage one of the stadium.
In March 2022, the then Federal Member for Nicholls Damian Drum announced $3.3 million in funding was coming from the Australian Government's Community Development Grants Programme.
In mid-2022 council went out to tender for the projected $9.9 million Multisport Stadium build and received two tenders, both of which were 40% over the projected cost.
In an effort to cost save, council decided to go ahead with just stage one of the project which included the entrance foyer, cafe, kitchen, tournament office, meeting room, toilets and showers, multipurpose room, umpire rooms, first aid room, changing place and four changerooms, each include a fully accessible toilet and shower and of course two multipurpose courts with seating.
Stage two was slated to include two additional multisport courts - concept only shown on floor plan while stage three will include an indoor pool facility including changerooms, toilets and showers - concept only shown on floor plan.
No work has progressed on either project since around October, similar to the time the commission began their inquiry.
The commission report stated in relation to the library development and multisport stadium that “both projects have been essentially councillor driven and have generated significant financial and other risks and liabilities that have not been adequately addressed in council’s planning and decision making.
“In relation to both projects, the council has not been fully transparent and accountable to the community it serves.
“The Commission understands that the library project will proceed. However, the stadium project is subject to internal review and reappraisal.”
The commission recommended that a full and complete external audit be undertaken of council’s financial management policies and practices including procurement.
