Rate rise ‘inevitable’ following $7m cost increase of Busselton’s arts hub

A number of design “oversights” in Busselton’s new performing arts centre have led to a $7 million budget blowout and will “inevitably” lead to a rise in rates next year, Busselton Mayor Phill Cronin said. Saltwater will now cost $51.55 million to complete thanks to a recently agreed upon contract variation allowing for design changes — an increase of more than 15 per cent from the original $44.55 million price tag. According to Mr Cronin, a number of “oversights” in the design and unexpected costs meant variations in the construction contract were needed. One such section is the flooring of the much-touted auditorium which will allow for a variety of events to be held, “What we found out was with the flooring, the levels were wrong or such, it was just an oversight,” Mr Cronin said. “There was a problem when we were connecting in the Weld Theatre, we also found that once you started peeling off those layers of an onion you found that there was issues with the electrics, there was asbestos, there was some underpinning, et cetera, that needed doing. “All of these things have, unfortunately, eventuated to a cost increase.” Funds will come predominately from new loan borrowings ($5.27 million) while the rest will come from three existing cash reserves. At this stage it is not expected the State Government will provide any additional funding. Mr Cronin said the city was in a strong financial position but ultimately some of the cost would fall on ratepayers. “The money would need to come from somewhere, we are in a very strong position with over 50 million plus, 60 million in the bank,” he said. “But what we do is to make this intergenerational ... so someone arrives today they will in fairness be paying for that over a period of time. “So look yes, there will inevitably be a small (rate) increase, but it won’t be anything too onerous and all the rest of the fees and charges are already incorporated into the current rate system.” The city pointed to the fact a 15 per cent increase remains under the State construction average. Despite the cost escalation and design amendments, Mr Cronin said the project would be completed as originally intended with no cuts to planned facilities or services of the building. Construction on the project is scheduled to be completed in April to May next year, with a short period of fitting out the facility before it is open fully. According to the city, demand is still high to use the prospective space, with up to 10 inquiries a day. Mr Cronin defended the city’s management of the project, saying in his experience all projects were susceptible to errors. “I would say they’re not necessarily mistakes per se, it’s oversight,” he said. “When you build — and look I graduated as a civil engineer, I’ve worked on some major projects — it is very, very difficult to ... when you’ve got millions of design drawings, to make sure that everything is perfect. “There wouldn’t be a single house that’s built without a problem. “No project I believe (will be mistake free) — if you want to go as far as looking at some of the State Government projects where they’ve gone over by half a billion.”