FAQs

Victor Harbor and the surrounding region has experienced sustained growth in population, and further growth is expected as more families move to the region. There is a shortage of adequate facilities to support current and expected growth across the southern Fleurieu region and consequently significant investment in community infrastructure is required, evidenced by a demand analysis that highlights the need for regional facilities. The Precinct aims to take a significant step to addressing this gap.

Based on community and stakeholder feedback, along with supporting investigations, Lot 202 Armstrong Road, Victor Harbor was nominated as the preferred location for The Precinct.

Following significant investigations and analyses undertaken to determine the feasibility of the project, Council made the decision to explore potential partnership opportunities with the private sector as a way to balance affordability and financial sustainability. This approach helps ensure the delivery of a facility that provides the best outcome for the broader community in terms of addressing gaps in facility provision and achieving value for money.

The proposal would see a private consortium construct and operate the sport and recreation facility, along with a childcare centre, food and beverage offering and retail spaces.

A draft concept plan has been provided for consultation purposes, noting that it is a draft only and subject to change as negotiations progress with the private consortium.

The types of uses anticipated in the Recreation, Leisure and Entertainment section include four multi-purpose courts (to accommodate a variety of activities, e.g. basketball, pickleball, badminton, and more), room for an additional two courts in the expansion area, gymnastics area, health club,meeting rooms, party rooms, retail spaces, show court seating, studio spaces, café.

The following summarises indicative financial and tenure arrangements:

• Overall Development Cost: approximately $40 million.
• Council Contribution: $11.7 million to be made over two financial years (2024/25: $4 million; 2025/26: $7.7 million).
• Ongoing Costs: No ongoing costs to Council, the upfront cost includes a subsidy to offset costs for sporting facilities.
• Lease Arrangement: In order to make the facility viable, the private consortium requires a long-term lease over a portion of Lot 202 Armstrong Road, Victor Harbor. It is proposed that Council enter into an initial 99 year lease with two 25 year lease extension options.
• Facility Ownership: Private, with the developer responsible for all capital and ongoing maintenance. At the end of the lease period, either the facility is in usable condition and handed over to the Council or removed at the developer’s expense.
• Facility Management: Private, with Council having representation on a Precinct Management Authority.
• Community Access Fees: Community access fees will be benchmarked and capped based on similar facilities across regional South Australia. The fees and other operational matters will be reviewed annually and approved by the Precinct Management Authority.

Council will utilise borrowings to minimise the impact on Council rates and spread the costs of The Precinct over a number of generations. Council is also pursuing grant funding opportunities to reduce its contribution towards The Precinct.

Total borrowings at the end of 2025/26 are forecast to be between $20-$22 million (includes the $11.7 million contribution for The Precinct). The Council’s Long Term Financial Plan shows that borrowings at this level are affordable and can be managed within Council’s financial targets.

Annual reviews of Council’s Long Term Financial Plan will assist to closely monitor this position.

A long-term lease, as requested by the private consortium, is unable to be facilitated on Community Land. Therefore, Council is proposing to revoke the community land status for a portion of the site (around 30%), with the remainder staying as community land and Council retaining ownership of the whole site.

Council representatives will be on hand to answer questions at the following locations:

Victor Central Shopping Centre (near Standbags):

• Thursday, 30 May 2024 • 10am - 3pm
• Tuesday, 4 June 2024 • 10am - 3pm

Victor Harbor Farmers’ Market:

• Saturday, 1 June 2024 • 8am - 11am

Public Meeting at the Civic Centre:

• Thursday, 6 June 2024 at 6.30pm

Can make any of these? Feel free to call (08) 8551 0500 and ask your questions over the phone.