South Perth pool axed after $30m shortfall

Aspirations to build aquatic centres in the Perth metropolitan area struggle to stay afloat with a proposed South Perth pool now dead in the water.

The City of South Perth council last night voted to drop the $80 million recreation and aquatic facility (RAF) plan after estimating a capital shortfall and failing to obtain state government funding.

The proposed RAF was to be built at Collier Park Golf Course, and was expected to include a 50 metre swimming pool, indoor sports courts, a climbing wall, a gym, a golf driving range and mini golf course, and cafe or restaurant.

In a report to council, the city's planning officers said the estimated costs for the first stage of the RAF project had increased from $60 million to about $75 million.

City of South Perth mayor Greg Milner said the decision to not continue with the project would be a disappointment for many community members.

“The Recreation and Aquatic Facility has been the city’s largest and most ambitious ongoing project for many years now, and I would like to take this opportunity to thank members of the community for their participation and involvement in all aspects of the RAF," he said today.

"The broad cross section of views about the RAF in our community have been well represented. I acknowledge that many members of our community will be disappointed with this outcome.

"Unfortunately, in light of the current economic climate, the significant capital funding shortfall, high interest rates and council’s commitment not to increase rates to subsidise the operation of the RAF, council has decided that the city is unable to proceed with the project.”

The city officers said there was an estimated capital shortfall of up to $30 million but no viable alternative financing options were available.

"Should the city borrow the full amount required to address the capital funding shortfall ($30 million), a rate increase in excess of 7 per cent would be required," the report said.

"This would be in addition to any increase required to maintain the city’s current services and existing assets.

"It should also be noted that borrowing $30 million would not be considered a financially prudent decision, given that it would likely exhaust the City’s entire borrowing capacity [for one project] and given current interest rates, would result in the city repaying approximately $50 million over 20 years."

The federal government pledged $20 million towards the project during the 2019 federal election campaign, which was matched by the city.

Additional funding of up to $3 million from Curtin University was also secured, according to the report.

Perth pool troubles

The city had requested $20 million in funding from the state government since 2021 but there had been no commitment to include financial support for the RAF in the following state budgets.

Sport and Recreation Minister David Templeman delivered a massive blow to the city's hopes to close the financial gap, confirming via a letter sent in April that funding would not be allocated in the 2023-24 budget.

The fate of the project had also been in trouble with councillors twice voting against appointing a project manager, which risked the city losing the $20 million federal funding.

South Perth councillor Jennifer Nevard said the city was not alone and was among other local governments experiencing similar issues.

"The three projects funded through this system in the metropolitan area have all reached the same conclusion so we, as City of South Perth, are not in isolation in how these projects have unfurled," she said at last night's meeting. 

"I think that playing blaming games is sort of inappropriate given that each of those projects experienced the same difficulties."

In late February, the state government had stepped in to expedite progress of a stalled leisure and aquatic centre in Ellenbrook.

The Ellenbrook Leisure Centre has been planned for more than a decade, with state and federal governments committing $42 million towards the project.

Works started in September 2020 but construction stopped in March 2022.

The City of Swan cited rising costs in the construction market and two unsuccessful attempts to secure a contractor through a tender process as reasons for the delay.

The city also estimated the construction costs had ballooned to $70 million, from the initial $63.5 million price tag.

Another anticipated aquatic project is the 50-metre, six lane swimming pool that is part of the $100 milllion redevelopment of the West Australian Cricket Association grounds in East Perth.

Funding for the WACA pool had been the subject of growing tension between the City of Perth and the state government in the past year.

In March, the city announced it was working with the state government to consider relocating the aquatic elements of the Ellenbrook Leisure Centre to be closer to the train station.

The proposed Alkimos Aquatic Recreation Centre is also underway after the City of Wanneroo secured an additional $30 million funding for the $70 million project.

The city had sourced funding options in January 2022, and secured commitments from the federal and state governments.