The Yarrawonga Multisport Stadium construction has been paused due to financial pressures and funding uncertainty.
The Yarrawonga Multisport Stadium development has come to a halt with a cloud over the $3.3 million in federal funding and a construction cost expected to exceed up to $4 million.
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Moira Shire Council recently went out to tender for the projected $9.9 million Multisport Stadium build and received two tenders, both of which were 40% over the projected cost.
Moira Shire Chief Financial Officer Matt Jarvis said with higher financial impacts due to the COVID-19 pandemic, council had to be vigilant with how much money would be spent on the one project.
“We need to be accountable to our ratepayers, therefore we are working through the concerns regarding the Yarrawonga Multisport Stadium due to the changes in the economic climate since the pre-COVID inception of the project,” Mr Jarvis said.
Yarrawonga Mulwala Basketball Association representatives Brett Harvey (far left) and Amanda Wheaton (far right) join former Federal member for Nicholls Damien Drum, Liberal candidate Steve Brooks, new Federal member for Nicholls Sam Birrell, Nationals candidate Liz Fisher, former Deputy Prime Minister Barnaby Joyce, Moira Shire Mayor Libro Mustica and local school students at the funding announcement earlier this year.
“The concerns council have in beginning the construction in the short term are:
• The Federal funding of $3.3 million allocated to this project before this election has not been confirmed by the current government.
• Current interest rates continue to climb and the effects of borrowing $7 million on council’s long term financial sustainability need to be reconsidered in light of this.
• Tenders received have come in at up to 40% above the projected cost.
“With the uncertainty around federal funding, increasing interest rates and high inflation we need to carefully consider all outcomes.
“The economic situation is impacting every scale of construction — costs are completely different to what they were before COVID, so naturally due diligence needs to be done.”
Moira Shire has been informed it will receive a decision on the federal funding in September and is looking at other additional funding sources to address the shortfall in funds.
Federal Member for Nicholls Sam Birrell said he believed assigned money announced earlier this year will still come to fruition however there has been a delay since the federal election.
“The Nationals announced before the government went into a caretaker mode prior to the 2022 election that grant funding of $3.3 million had been allocated to the Moira Shire for the Yarrawonga Sports Stadium project,” Mr Birrell said.
“My understanding is that this was all signed off and was in the budget – I am following this up through the department and will work to ensure that the new government honors the agreement.”
In March, former Federal Member for Nicholls Damian Drum announced $3.3 million in funding was coming from the Australian Government's Community Development Grants Programme with the project value for the construction of the stadium as a whole being $9.9 million.
This has been jointly funded by Moira Shire Council, the Australian Government Community Development Grants Programme, and the Victorian Government Local Sports Infrastructure fund, as well as a low interest 2020-21 Community Sports Infrastructure Loan and the Yarrawonga-Mulwala Basketball Association.
In June 2021 council received $2 million as part of the 2021 Victorian Local Sports Infrastructure Fund. Earlier that month they were also successful in securing $7 million in low interest loan funding to deliver stage one of the stadium.
Yarrawonga Mulwala Basketball Association President Amanda Wheaton said she and several stakeholders were disappointed to hear the construction has been paused and will work with the relevant parties to ensure the continuation of the project.
“This news is extremely disappointing considering the work that has gone into the project so far and the absolute need for the facility in our town,” Ms Wheaton said.
“We will be working closely with council to look at what can be done to address these issues so that we can keep moving forward to get the Multisport Stadium underway.
“We are not prepared to let the project fall over.”
Once construction begins the stadium will be built in three stages with stage one to include the entrance foyer, cafe, kitchen, tournament office, meeting room, toilets and showers, multipurpose room, umpire rooms, first aid room, changing place and four changerooms, each include a fully accessible toilet and shower and of course two multipurpose courts with seating.
The changerooms are designed so that two are accessible from the outside so that netball and other sports are able to utilise these. For large tournaments in the stadium, all four changerooms will be accessible.
Stage two will include two additional multisport courts - concept only shown on floor plan while stage three will include an indoor pool facility including changerooms, toilets and showers - concept only shown on floor plan.
The construction of Yarrawonga’s other large project in the Yarrawonga Library, Events and Performance Precinct will begin in September.
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