RESIDENTS HAVE SAY ON PERFORMING ARTS CENTRE,
DOUBT OVER PROJECTED FIGURES
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.