RES­I­DENTS HAVE SAY ON PER­FORM­ING ARTS CEN­TRE,

DOUBT OVER PRO­JECTED FIG­URES

Joondalup Weekender - - Front Page - Tyler Brown Com­mu­ni­tynews.com.au

THE Con­nolly Res­i­dents As­so­ci­a­tion has locked horns with the City of Joon­dalup over pro­jected fig­ures for the pro­posed $100 mil­lion Joon­dalup per­form­ing arts cen­tre.

The as­so­ci­a­tion and Joon­dalup Re­sort hosted an in­for­ma­tion ses­sion ear­lier this month at­tended by about 200 res­i­dents from across the City.

As­so­ci­a­tion chair­man Charles Eb­den fa­cil­i­tated dis­cus­sion with a panel of speak­ers con­sist­ing of Joon­dalup Re­sort chief ex­ec­u­tive Wayne Car­roll, Joon­dalup coun­cil­lor Rus­sell Poli­wka, per­former Re­nee Wing­field and char­tered ac­coun­tant and for­mer Deloitte se­nior part­ner Bryan Thorn.

Mr Eb­den said the meet­ing was to show “how our rates might get im­pacted in the years go­ing for­ward”.

“Our con­cern is the on­go­ing push on rates that must in­evitably come when you em­bark on a project of be­tween $100 mil­lion and $230 mil­lion over its life, and pos­si­bly a lot more,” he said.

He said as­so­ci­a­tion’s fig­ures were “based mainly from the cir­cu­lars and in­for­ma­tion the City of Joon­dalup had put out to­gether with in­for­ma­tion pub­lished on the web­site and the re­port done by Deloitte – the ac­coun­tants tasked to give an opin­ion on this project in Novem­ber 2016”.

Mr Thorn pre­sented sev­eral ta­bles that showed the City’s pro­jected costs and what he be­lieved the costs could be if look­ing at the “worst-case sce­nario”.

This in­cluded an op­er­at­ing loss over 40 years of $96.5 mil­lion com­pared to the City’s $57.7 mil­lion be­cause Mr Thorn be­lieved the City’s op­er­at­ing cost fig­ure of $863,000, not in­clud­ing bor­row­ing costs and de­pre­ci­a­tion, would get worse by an ex­tra 2.5 per cent each year and Deloitte be­lieved $863,000 was “un­der­stated” and $1.4 mil­lion was more likely.

The big­gest dif­fer­ence was in the as­set re­place­ment costs, with the City pro­ject­ing $79.4 mil­lion and Mr Thorn pro­ject­ing $287.7 mil­lion.

He said short-term as­sets would need to be re­placed once ev­ery 10 years or less, which “has not been cor­rectly ac­counted for”.

There­fore, the cost over the life of the project is es­ti­mated at be­tween the City’s to­tal of $265 mil­lion and the worstcase sce­nario of $516.4 mil­lion.

“There’s a huge amount of un­cer­tainty about what the ac­tual out­come will be,” Mr Thorn said.

An artist’s im­pres­sion of in­side the pro­posed Joon­dalup per­form­ing arts cen­tre.

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