Yarrawonga library, sports stadium builds slammed by report into Moira Shire Council

By Emma Prior

Mar 12, 2023

The Yarrawonga library, events and performance precinct was initially to be completed by May this year but has remained an empty block for months.

The development of Yarrawonga’s new library and multisport stadiums are “case studies in how not to approach complex capital projects”, according to the Commission of Inquiry report into Moira Shire Council.

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The “white elephant” multi-million dollar sports complex, which has blown well beyond its initial $10 million price tag, is now under review, while demolition of the former community hall to make way for the library has been slammed by the report as showing “contempt” for the community.

The 178-page Commission of Inquiry report into Moira Shire Council gave damning evidence against council’s handling of both projects stating the library project was “initiated without any fully costed business case or site assessment” and while a business case was commissioned for the stadium project, its assumptions are now in question.

The projects, which were also council’s flagship projects went substantially beyond their original cost estimates and had serious design deficiencies.

In April 2019, the initial costing of the library redevelopment was $5 million.

In February 2022, the estimated project cost was $6.7 million and is now understood to be more than that figure.

The Yarrawonga library, events and performance precinct will proceed but not to the timeframe as originally proposed. Photo by Emma Prior

Throughout the planning process, council found itself at loggerheads with the Yarrawonga Community Action Group, which rejected the demolition of the Yarrawonga community hall to make space for the library.

While YCAG took council’s motion to demolish the hall to VCAT, the inquiry report stated that council took advantage of new planning provisions limiting the appeal rights of community members to issue itself a demolition permit for the community hall.

The report said the proposal was only advertised to adjoining owners and no sign was erected on the site ahead of demolition.

The inquiry report also stated that council had a pre-determined position with the library project and did not meet its prudential obligations under the financial management principles of the Local Government Act.

“Issuing itself a permit via an agent to demolish the Yarrawonga community hall whilst an appeal was underway at VCAT showed its determination to pursue its preferred option and its contempt for the democratic and lawful rights of those community members who opposed it.”

Despite the Moira Shire website citing that the library development would be complete by May 31 this year, the Commission was advised that as of December 2, 2021, only $1 million had been spent on the library development.

Initially, the multisport stadium, which is to be constructed in two stages with the option of a third, was projected to cost $9.9 million.

That figure has now blown out to close to $17 million, with consultants estimating a project cost of $16.9 million, including $10 million for stage one.

The Yarrawonga multisport stadium construction will now come under internal review.

From the outset there were different views within council about the project with the report stating that one councillor thought the project was a costly “Taj Mahal”, that council was “just going through the motions” and that “it would never be built”.

The costs of the project have been a focus of the council’s attention and discussions throughout the project.

In June 2021, council received $2 million as part of the 2021 Victorian Local Sports Infrastructure Fund.

Earlier that month, council was also successful in securing $7 million in low-interest loan funding to deliver stage one of the stadium.

In March 2022, the then Federal Member for Nicholls Damian Drum announced $3.3 million in funding was coming from the Australian Government's Community Development Grants Program.

In mid-2022, council went out to tender for the projected $9.9 million multisport stadium build and received two tenders, both of which were 40 per cent over the projected cost.

To cost save, council decided to go ahead with just stage one of the project which included an entrance foyer, cafe, kitchen, tournament office, meeting room, toilets and showers, multipurpose room, umpire rooms, first aid room, changing place and four change rooms, each including a fully accessible toilet and shower, and two multipurpose courts with seating.

Stage two was slated to include two additional multisport courts, while stage three was set to include an indoor pool facility including change rooms, toilets and showers.

No work has progressed on either project since around October, similar to the time the commission started the inquiry.

The commission report said: “Both projects have been essentially councillor driven and have generated significant financial and other risks and liabilities that have not been adequately addressed in council’s planning and decision making.”

“The council has not been fully transparent and accountable to the community it serves.

“The Commission understands that the library project will proceed.

“However, the stadium project is subject to internal review and reappraisal.”

The commission recommended that a full and complete external audit be undertaken of council’s financial management policies and practices, including procurement.