FAQs

The area proposed for revocation is a portion (approximately 35,000 sqm) of Allotment 202 Armstong Road. As marked in red on the map below. (Note: a larger map is included in the Revocation Report available at www.yoursay.victor.sa.gov.au)

The entire allotment is approximately 110,000 sqm and is adjacent to the Encounter Community Centre, Victor Harbor TAFE Campus, the Victor Harbor Police Station and Inman River.
  

The City of Victor Harbor purchased the Land from the Department of Infrastructure and Transport (DIT) in 2021 in the long-term interest of the community, given its strategic significance as one of the last sizeable vacant land parcels remaining in the township area and as a location option for the proposed sporting precinct. The Council applied for and was successful in receiving 50% of the purchase price through the SA Government’s 2021/22 Open Space Grant Program.

Whilst the Council has been investigating options for the delivery of a community, sport and recreation precinct, the land has remained vacant and used informally for passive exercise by the community.

All local government land (except roads) that is owned by Council or is under the care, control and management of Council is Community Land under the Local Government Act 1999 (the Act), unless it has been exempted through legislation, excluded by resolution of Council or the classification has been revoked.

Community Land is restricted by sections of the Local Government Act, in terms of disposal, lease duration, management etc.

The revocation of the classification of community land status will enable Council to lease a portion of this land to a private consortium to facilitate the delivery of the Regional Community, Sport and Recreation Precinct (The Precinct).

As per Section 202 of the Local Government Act 1999, land classified as community land, cannot be leased for more than 42 years.

In order for the private consortium to secure the required loan and to get a return on investment, they require an initial 99-year lease and have requested two 25-year lease extension options.

It's important to note that the remaining portion will remain community land, and Council will retain ownership of the entire allotment.

The Community Land Revocation Report prepared as part of this consultation and all ancillary materials will be presented to the Minister of Local Government for consideration and approval. If approval is granted, it is granted on the basis of the proposal presented.

If Council were to change the intent of the proposal outlined within the Revocation Report, which is to enable a longer-term lease for the purpose of delivering The Precinct, the revocation process would be required to recommence. This would involve the preparation of an updated Revocation Report for community consultation and presentation to the Minister for Local Government.

Significant planning has been undertaken to explore options for improved sports and recreation facilities in Victor Harbor to help meet the needs of our growing and diversifying community. This project, The Precinct, will see the development of a medium-scale, multi-purpose, regional community facility that meets the needs of growing indoor sport and recreational activities, at the same time as providing a welcoming and inclusive space for the community.

The Precinct continues to be the most important major project on the Council’s agenda, as nominated by the community in both the 2022 and 2023 Community Satisfaction Surveys with 70% and 67% support, respectively.

In early 2022, the community and key stakeholders were asked to provide their views on three potential location options including, Allotment 202 Armstrong Road. Community feedback along with other investigations and analysis, indicated a strong preference for Allotment 202 to be the preferred site for the Precinct.

Strengths of the site include multiple access points, central location, road and pedestrian/bike links, and a potential link to TAFE SA and Regional University Study Hub.

The project is to include, as a minimum:

• Four multi-purpose courts (minimum 7m ceiling height) that can be used for a combination of sports validated by demand assessments and meeting the project’s commercial objectives;
• Community spaces (e.g. shared meeting spaces, space for passive recreation e.g. yoga, dance);
• Storage for equipment etc;
• Canteen / café;
• Administration areas;
• Toilet / showers / change rooms;
• Fitted with adequate climate control (i.e. air conditioning, preferably run utilising renewable energy such as solar power);
• Tiered seating to at least one court (minimum 200 seats);
• Carparking (minimum 160 spaces).

Some broad objectives for The Precinct include that the facility:

• Is designed to meet the immediate, growing and long-term needs of the community;
• Provides a diverse mix of uses including recreational, leisure, sport, entertainment and food and beverage offerings;
• Appeals to and is used by the widest range of future users;
• Is commercially self-sustaining;
• Is community-driven and multi-functioning;
• Has high standards of environmental sustainability;
• Is welcoming and inclusive for all (including employing the principles of universal design and access for all);
• Drives regional population growth;
• Acts as a tourism and economic generator for the region.

In order to deliver this project in a financially sustainable and cost effective way while also providing benefits to the broader community, Council is proposing to partner with a private consortium.

The cost of such a large piece of community infrastructure would be significant in any economic environment. The volatility of the economy over the past couple of years has certainly amplified this and we have received estimates from professional cost surveyors suggesting an extraordinary cost (construction costs between $25-$45 million and ongoing operation costs in the vicinity of $2 million annually) to bring this project to fruition.

In order to balance the prime considerations of affordability and financial sustainability, while also providing an asset that addresses gaps in current facility provision, Council sought to explore partnership opportunities with the private sector.

The consortium propose to construct and operate The Precinct, for at least a 99 year period, under a ground lease arrangement. In return, they are seeking an $11.7 million investment from Council which covers a contribution to the construction cost as well as all the ongoing subsidies required for the operation of The Precinct.

A draft concept, refer to below, has been prepared to give the community an idea of what to expect in terms of scale and use type. The concept is not final so subject to change, however, the intent of the facility will remain the same.

The types of uses anticipated in the Recreation, Leisure and Entertainment section are as follows: 4 x multipurpose courts (non-negotiable), 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.

There is also the addition of much-needed community facilities like childcare and allied health.

Before this private partner was investigated, Council developed a series of concepts, with varying facilities and degrees of amenity. Independent cost surveying forecast a capital budget in the vicinity of $25 million – 45 million, and a likely operating budget in the region of $2 million per annum, taking into account maintenance, management and asset depreciation.

Other options present a significant increase to the investment required of Council. In the event, that the private partner negotiations do not yield acceptable results, Council has budgeted in the 2023/24 financial year $1,070,000 for detailed design of The Precinct. Savings from this, represents the vast majority of the ongoing subsidy required of Council across the lifetime of the asset (minimum 99 years).

No, the developer carries all the risk in regards to construction cost, ongoing costs and maintenance. The ongoing subsidy required of Council assumes a worst case scenario in regard to profit projections and therefore is very unlikely to increase.

The developer will own the built assets and Council will retain ownership over the land. At the end of the lease period, either the facility is in usable condition and handed over to the Council or it is removed at the developers' expense.

The developer is responsible for all ongoing and capital maintenance of the lease area, including surrounding grounds.

Yes, the developer has included expansion areas in the concept plan. These expansions will need to be approved by Council, to ensure a balance between community recreational infrastructure and other complementary development.

A private operator will be responsible for the management of The Precinct.

Not for this proposal. If Council were to build The Precinct themselves, there would be an option for Council to manage the facility, however, this would be of a significant cost to the ratepayer and would not meet the objectives of the proposal.

It is proposed that community access charges will be capped relative to comparable asset charges (benchmarked across similar facilities within regional South Australia) or as otherwise mutually agreed by the Council and the private consortium.

Negotiations are continuing with regular users to discuss fees and charges, and their specific needs around access.

A Community Land Revocation Report has been prepared in line with the requirements of the Local Government Act 1999, and the Council now invites submission on the proposed revocation.

Copies of the report, along with details on how to make a submission, can be viewed:

• Online at www.yoursay.victor.sa.gov.au;
• In person at the City of Victor Harbor Civic Centre, 1 Bay Road, Victor Harbor.

Submissions must be lodged with Council before 5pm on Tuesday, 11 June 2024.

Please be aware that copies of all submissions made during this consultation may be made public.