The Precinct Update - October 2024

While it is not normal practice for the City of Victor Harbor to respond to ‘Letters to the Editor’ there has recently been a string of letters within this publication that present opinion as fact on the proposed Regional Community and Sporting Recreation Precinct and it is important that clarifications are made.

Firstly, no detailed design work has begun at this stage. It is intended this will commence for the recreation facility component of the project soon and stakeholders, such as the Great Southern Amateur Basketball Association, will be consulted during this process to ensure the facility is fit for purpose and meets community needs.

The cost of the recreation facility is approximately $25 million, with Council contributing $11.7 million towards this. The other components—childcare, allied health, and food services—are proposed to be developed through a Public Private Partnership at the Proponent’s expense, providing income to the Council through ground leases and rates. The total development value is proposed to be $41 million. The proposed collaboration between public and private sector combines strengths and capabilities to help build this infrastructure for the community that would otherwise be unaffordable for Council without significant external funding.

Council is also exploring various operating models for the recreation facility, including self-management, in response to concerns raised by community groups like the local gymnastics club about the proposed third-party operator put forward by the Proponent. There is significant modelling to be undertaken to fully understand the implications of Council taking on the operations. This work is being undertaken now as a priority as a part of the negotiations between Council and the Proponent.

The framework for this negotiation is outlined within a Heads of Agreement (HOA). The HOA does not commit Council to progressing with the partnership. A final decision will be made once due diligence is completed, which is still some time away.

The City of Victor Harbor is working hard to ensure this project is in the community’s best interest. While affordability is a key consideration, fees for community to access the centre will need to reflect the quality of the facility and be in line with similar regional facilities in South Australia. At the end of the day, we know that for this Precinct to be a success, people need to use it and the prices need to be competitive.

Finally, Council has released all available information to the community, with only legal or commercial details being withheld to protect ongoing negotiations. We are committed to transparency and will continue to provide updates via our website and other communications channels.

Council remains focused on affordability and financial sustainability, balancing the expectations of those for and against this project.

We encourage you to keep up to date with the latest project news via our website www.victor.sa.gov.au/theprecinct