Cost blowout for leisure centre as construction to begin

Construction of a long awaited second basketball stadium at the Warragul Leisure Centre is set to begin.

Baw Baw Shire has awarded an $11.2 million contract to local company Kubale Construction, but a report to council said increased building supply costs would result in a $2.57 million budget blowout.

Council has applied for a State Government grant to cover the additional costs.

The existing two-court stadium will be transformed into a multi-use sports facility, including two new indoor courts, a central reception area and foyer, two multi-purpose rooms, a link to the existing stadium, multiple changerooms, toilets and showers, tournament office and commercial kitchen.

The project also includes a storage area for the Warragul Swimming Club. Additional car parking will be created and the existing front car parking and drop off area will be remodelled.

The State Government is contributing $6 million to the project and council will contribute the remaining funds.

Officers said the project was over budget because of significant cost increases in materials and labours, as well as contractors pricing risk into their tender because of the limited availability of labour and materials.

If council is successful in obtaining a $2 million Growing Suburbs Fund grant, the shortfall will be substantially reduced.

"Given the multi-year construction for a project of this scale, the relevant shortfall in funding could be referred to the 2023-24 annual budget process and funded through a combination of borrowings and council cash.

Kubale Construction previously secured the early works contract and have been on site undertaking preparatory works for the project including earthworks, installation of new storm water pipework, sewer diversion works, and demolition and removal of redundant infrastructure.

A report to council said early excavation works on the site identified fibro-cement sheet containing asbestos across the site.

Officers said the site abatement had been completed and an independent hygienist had issued a certificate of compliance confirming the site was clear of contamination.

Works are proposed to be staged to enable continuity of use of the outdoor pool and associated areas.

Cr Danny Goss said the development was a lot of money and "it is well and truly over budget."

Cr Goss said building costs had gone through the roof and were up 30 per cent.

"It's a fantastic addition to the sporting and infrastructure needs of the shire. Basketball is the biggest participation sport in the shire," he said.

Cr Goss said the stadium was a development for all ages and all genders.

"We are a fast growing community and this adds more options to our sporting infrastructure," he said.

Cr Jazmin Tauru said it was a much needed upgrade that would be well used.

Cr Darren Wallace said the development was the second largest tender to be approved in the past six years.

"We've seen many reports showing the expansion of basketball in the shire.

"We have also heard year after year from the Warragul Swimming Club who need more space.

"This will transform the current facility into a sub-regional facility and opens it up to hosting state championships in basketball and swimming," he said.

Cr Peter Kostos said he coached junior basketball in Warragul in the 1980s and there was a need then for more court space.

Mayor Michael Leaney said council was excited to be progressing to the next stage of this significant expansion project.

"The existing Warragul Leisure Centre will be transformed into a modern, multi-use facility to better service the growing demand for indoor sports in Baw Baw Shire," he said.