VC Mitchell Park - BUDGET BLOWOUT

Reduced Stage 1 - Now set to cost over $12 Million

The Chief Executive Officer (CEO), Ben Rose, is requesting Council to:

• Endorse a project co-contribution of $ 3.5m (previously capped at $3m)
  
• An additional loan amount of $ 500,000 (from shire reserves)
• Football Club contribution $ 250,000 (still no commitment from DFC)
• A Reduced Scope for Stage 1 with a Budget of $ 9,771,450.00 (For a Two Storey Football Club)

The CEO Ben Rose still has No Business Plan or Feasibility Study

However, upon reading the agenda for this month (March 2022) it would appear that the Ratepayers

may not be getting a fair deal.

Meeting Agenda

The proposed reduced scope for tender totals $5,985,324.00

• Football club (Multi-Purpose Pavilion) - Site Prep/Demolition $4,981,178.00
• Infrastructure (electrical, hydraulics, drainage) $879,146.00
• Other fees, total $2,377,669.00
• Tennis Club aesthetic works only $100,000.00
• Tennis lighting infrastructure $15,000.00

In the agenda document, which will be presented to Council next Wednesday 23/03/2022  

The CEO is asking for permission to allocate over 98% of the $9.7 million funding to the Donnybrook Football Club.

• Nothing for Basketball.
• Nothing for Netball.
• Nothing for Cricket.
• Nothing for other community sports.
• Nothing for the Rec Centre.
• Tennis scope reduced to aesthetic works only.

$9.7M V.C Mitchell Park Project Flawed

The Shire Consultant Anna Dixon & her "Options Analysis Report " raises concerns over the viability of the project.

Key Findings and Recommendations

• Research undertaken by ADC consultants revealed major concerns amongst some of the sporting groups around the value of a multi-purpose venue.

• Only a limited number of sporting clubs were onboard with the idea of a semi-commercial operation out of the facility.

• A detailed competitor and market analysis also revealed a number of risks and challenges associated with a commercial enterprise, not just in terms of its viability but also the potential negative impact it may have on local small businesses who are already experiencing low profit margins.

• Despite a strong local economy, Donnybrook hospitality businesses struggle to stay afloat and anticipated low revenue growth is expected in the next five years.

• An older demographic in the LG area with lower than average disposable income, combined with a number of similar options already on offer within close proximity, raises important questions as to the viability of this project.

In Summary

ADC’s report raises concerns that the proposed Shire expenditure of $9.7M on the VCMP proposal may well be unviable and may result in an unsustainable venture requiring continual Shire (Ratepayer) support throughout its life, in addition to the $3.5M loan being proposed.

We urge you to read the full ADC report.

Anna Dixons Report

Still No Business Plan or Feasibility Study

DBRRA recommends you Contact your Council members.

https://www.donnybrook-balingup.wa.gov.au/your-council/council/councillors.aspx

Please attend the Shire Council meeting on Wednesday the 23rd of March 2022.