Building a new hall in Cromwell would cost about $2million more than the previously agreed redevelopment, a report commissioned by the Cromwell Community Board says.
The Morrison Lowe report will be discussed by the board at its next meeting, tomorrow.
It was commissioned following a U-turn by the board in April, when members voted 4-3 to put all work for a previously planned redevelopment on hold, and seek costs for three new design/build options.
The Morrison Lowe report said the cost of the previously approved redevelopment, plus a margin for one year’s cost escalation, was $5.6million.
It said advice from consulting engineers Beca was that a rebuild would cost about an extra $2million. But the new $7.6million price tag would only provide "essentially the same level of service" as the $5.6million refurbishment, it said.
The additional cost and time would also mean more public consultation was required. Further time delays would then result in increased construction costs through escalation. It would be at least 1.5 years before construction could begin on the existing footprint, the report said.
The report said there were five options for the hall: build a new hall on the existing floorplan at an estimated cost of $7.6million; proceed with the previously agreed $5.6million refurbishment; build a new hall on the existing hall site but with a different floorplan, for example a bigger hall or one facing the lake; investigate whether there was a different site and scope for the building; or do nothing and just maintain the existing hall (this would cost between $1million and 2million).
All options had advantages and disadvantages.
A new, larger hall building may better meet the future needs of the community, and a new building design could make alternative use of the existing site by incorporating the lake views. If a new site for the hall was identified, the cost could be offset by the sale of the existing lakefront site, which was valued at $830,000.
But if the previously approved plan was not pursued, people who had engaged with the previous consultation and supported the approved design plan "may feel like they have ‘lost’ — time, outcome and confidence in council", the report said.
The risk analysis of the report said the process surrounding the hall had been robust and in line with good practice, but the length of time of the project was unusual.
"After 17 years there is a high expectation that the project should proceed on the basis that it has been consulted on. There is a risk that the inability to progress the project could be considered a ‘problem’ justifying Ministerial intervention under Part 10 of the Local Government Act 2002."
As well, "the tender not being awarded even though the tenderer met council’s requirements and the submitted price was under budget is not considered good practice and may result in reputational risk to council with the contracting community".
Cromwell Memorial Hall
• Redevelopment design approved in June 2016 after years of debate.
• Project stalled December 2016 when board failed to award tender.
• Board voted to proceed with design again and retender contract in February 2017.
• Project stalled April 2017, board voted to seek costs for new design/build options.
