The plan to turn the old Byron District Hospital site into a community hub is set to take a significant step forward this week, with councillors to debate and vote on the multi-million-dollar refurbishment of the site on Thursday.
Four years after NSW Health sold the dilapidated site to Byron Council for $1, the plan is to turn the site into a multipurpose hub, featuring education, community and commercial precincts.
But the project’s budget has blown out by an additional $650,000, forcing Council to once again draw on its reserves, which will worsen its already shaky financial position.
This week councillors will vote on a recommendation by staff to accept a tender from Blaze Projects to undertake the refurbishment of the site at a cost of $6,531,578.
$650K over budget
While the Blaze proposal was the cheapest of the five tenders received by Council, the report in this week’s Council agenda reveals that it is still $650,000 over budget.
Staff have recommended that the money be taken from developer contributions currently being held by Council.
This is money that Council puts aside to spend on basic community infrastructure.
‘All compliant tenders were over the initial budget,’ Council Project Officer, Michael Crosbie, and Development Planning Officer, Christopher Soulsby, said in their report.
‘This is a very tight construction program that carries significant risk with respect to meeting the [state government] grant deadline’.
‘Other risks associated with the project are the potential for unforeseen variations caused by building deficits that are not immediately visible until construction has commenced.’
The refurbishment of the site will see the entire roof on the northern section of the main building replaced, and major internal work undertaken inside.
All internal partitioning is to be demolished and the building repartitioned into a series of discrete tenancies comprising a mix of sizes and configurations to meet the varying needs of future tenants.
These include a small university campus for up to 175 local students and staff, at least one local welfare service, and an arts organisation.
The dilapidated hospital kitchen will be turned into a modern commercial kitchen, which will be available for hire, with priority given to not-for-profit groups providing food to community members in need.
Council deficit $435K
The financial risks identified by Council staff take on greater significance given the significant financial difficulties the Council is facing.
The agenda to this week’s meeting also reveals that Council’s overall budget is set to go into deficit to the tune of $435,000 in the 2023–24 financial year.
This is a consequence of a surprise increase in the emergency services levy (ESL) foisted on Council by the state government, Council’s decision to crack down on infringements such as illegal parking, dangerous dogs and van camping, and a modest pay increase for councillors.
‘It is suggested Council should consider its longer-term financial position,’ Council’s Manager of Corporate Services, Heather Sills, and Finance Manager, James Brickley, said in their report.
‘The budget projections demonstrate the difficulty Council has absorbing additional costs without corresponding revenue increases’.
‘Council must carefully consider the long-term implications on its finances when it is considering the addition of a new asset or service or current service expansion.’
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