Outrage after multi-million dollar redevelopment on the doorstep of the Sydney Harbor Bridge descends into chaos as a huge cost explosion risks putting an entire municipality into bankruptcy
A council is planning to massively increase rates over fears it could collapse financially if costs to redevelop an iconic swimming pool near the Sydney Harbor Bridge are eliminated.
The cost of redeveloping the North Sydney Olympic Pool has now almost doubled from the original estimate – and work has been delayed for more than two years.
It was originally budgeted to cost $64 million to renew the historic pool, with a completion date of Christmas 2022.
By September the price had risen to $91.5 million, but North Sydney Council has now revealed the final bill will be $122.2 million, with work expected to last until May.
The redevelopment was hit by a series of construction issues, including the steel roof frame which had to be demolished after ‘significant’ design issues were revealed following installation.
The wealthy council said the disastrous project has now made it financially ‘unsustainable’ ABC reported.
As a result, the council will vote on increasing property prices by 65 to 111 percent over the next three years and will also consider selling some of its facilities to fund the completion of the work.
The beleaguered redevelopment has already cost money needed to maintain the other buildings and facilities the municipality owns.
Outraged residents have now expressed their anger on social media over the outburst and possible rate hike – with minimum rates rising from $715 to $1,300 per year.
The iconic and world-famous North Sydney Olympic Pool (pictured) has cost more than $90 million to redevelop to date and is expected to cost more than $122 million by the time it is completed in May 2025.
“All councilors and the mayor must resign immediately and financial moderators must be involved. A full investigation is needed,” one person wrote on Instagram.
“91 million dollars for a damn swimming pool?” said another.
Another added: ‘Should the community pay for the council’s incompetence? Have I interpreted that correctly?’
“The way they charge for parking should be increased by the end of the week,” a third joked.
Average residential rates would rise from $1,040 to around $1,600 next financial year, while average business rates would rise from $6,724 to $11,307.
The council will ask the public for their views on four different rate hike options and will then submit a request for special variations to the Independent Pricing and Regulatory Tribunal.
North Sydney Council finance director Aigul Utenova said the council is “very weak” financially.
“The financial outlook is unsustainable,” she said.
The pool redevelopment was put on hold during the Covid lockdowns (photo)
“Decisions made at the initial planning stage, including the contract strategy and the decision to proceed before the designs were completed, have meant that significant risks have been taken and realised,” she said.
Ms Utenova added that the council had also had to deal with more debt, higher costs, more debt and less cash.
North Sydney Council Mayor Zoë Baker said the council “needs to have a very serious conversation as a community about the financial implications of the pool.”
She admitted she felt anger coming from the community and blamed the previous council for the “financially dangerous decisions.”
“As a result of the swimming pool project, a decade of neglect in the maintenance of municipal properties and assets and the financial impact of Covid, this municipality must undertake a financial recovery strategy to ensure financial stability for the municipality now and into the future,” he said. them. the Daily Telegraph.
“As a community, we must consider every option, including a review of rating revenues.”
In an update to the North Sydney Olympic Swimming Pool redevelopment provided to Daily Mail Australia by the council, a revised date for completion by the contractor has been changed from July 11, 2024 to May 23, 2025.
“The main reason for the difference between these dates is the delay associated with the structural steel over the roof of the 25-metre indoor pool, which is still under discussion,” the report said.
In the redevelopment update, North Sydney Council’s open space and infrastructure director Gary Parsons revealed the new estimated price tag for the pool’s completion.
“Current projected project costs total $122.2 million,” he wrote.
“A review of available budgets has been conducted and it is recommended that additional funding of $17,203,322 be made available to complete this project.
‘This does not take into account any legal recoveries on the project.’
North Sydney Council has a population of 69,000 and is the fifth most privileged LGA in Australia.
Last fiscal year it earned $150 million, as well as the year before.
Daily Mail Australia has contacted the council’s contractor, ICON, for comment.
