A funding boost has been given for a major state redevelopment project as initial construction costs have blown out from $26.5 million to $32.5 million.
The East Fremantle Oval precinct redevelopment was expected to cost $26.5 million when the state government announced the commitment last year.
However, the initial cost estimate has since increased to $32.5 million.
The state government announced an additional $5 million funding today, on top of the $20 million it already invested in the project.
“Unfortunately, the significant rise in construction costs is being felt right across Western Australia’s building and construction industry and this project is no exemption,” Sport and Recreation minister David Templeman said.
The new sporting precinct is planned to be home to men’s and women’s WAFL football, bowls, croquet, a health fitness centre and a space for community programs including Auskick and Starkick all abilities football.
Town of East Fremantle mayor Jim O’Neill welcomed the news, with the Town contributing the remaining $7.5 million despite having to sell off a couple of its council-owned properties.
Town councillors approved to “dispose” 128 and 128A George Street in a bid to raise money for the oval project at their meeting last month.
According to the town officer’s report for council, the town was hoping to get $1.5 million from the public auction of the two properties.
“The sale would be conditional that it achieves, as a minimum full market value, and sale proceeds are split between the East Fremantle oval development and helping to improve parking and streetscape in the immediate vicinity of George Street, King Street, Duke Street and Silas Street,” the report said.
“Should council not receive a satisfactory additional contribution from the state government for the East Fremantle Oval redevelopment project, the sale of the property is not to proceed at the current time.”
A statement from the town revealed 10 “suitably qualified” construction companies have submitted expressions of interest for the oval redevelopment project.
A shortlist of four to five companies is expected to be released in the next couple of weeks.
The oval redevelopment project is scheduled to be completed by early 2024.
This comes after other major projects now costing millions of dollars more than initially planned due to construction costs.
Construction costs for Momentum Wealth’s proposed six-storey apartment block in Shenton Park are up nearly 40 per cent up from its initial estimate, bringing the $18 million proposal closer to $25 million.
Business News also reported in October that Saracen Properties and Security Capital Australia’s proposed five-star resort in Gnarabup had blown out to $118 million despite an initial bill of $100 million.
