The estimated cost for the “Saltwater” performing arts centre in Busselton, Western Australia, has significantly increased, now projected to be upwards of $60 million, or close to $72 million when including loan borrowing costs.
This represents more than a threefold increase from the initial 2019 estimate of just over $21 million.
The project remains incomplete, with ratepayers expected to cover the additional expenses.
Project Overview and Delays
The 600-seat theatre and convention centre began construction in February 2022, with an initial target completion date of October 2023. Construction has been ongoing for years near the Busselton foreshore.
Factors Contributing to Cost Increases and Delays
A report by independent auditor KPMG, which the City of Busselton council is reviewing, cites several challenges:
- High labour and material costs.
- Supply chain disruptions.
- Legal disputes with the primary builder.
- Insolvencies among subcontractors.
The City of Busselton assumed control of the project from contractors in December of the previous year. The opening date for the facility has not yet been announced.
Community Impact and Reactions
Terry Thompson, owner of Busselton theatre school Acting Up, has supported the project but described the cost overruns as an "enormous overshooting." He noted that local theatre groups have been compelled to use alternative venues like gymnasiums and high schools during the prolonged construction period, leading to frustration.
Previous analyses projected the centre could contribute up to $6.6 million annually to the Capes Region, primarily through tourism.
Mr. Thompson expressed anticipation for the centre's opening, highlighting its potential benefits for dance schools, school productions, and attracting talent to the area.
Conversely, Busselton resident Michelle Shackelton voiced concerns regarding the financial burden on ratepayers, citing increased rates amidst family financial stress. She expressed dissatisfaction with the escalating costs and called for greater transparency from the city council.
The KPMG report also indicates the facility is expected to operate at an approximate loss of $1 million in its first year.
Another resident, Keith Sims, agreed that ratepayers should not bear the full financial responsibility. He noted that funds were drawn from reserves and additional money was borrowed, including $11.7 million in interest on the project. Mr. Sims stated that community members and industry experts had predicted price increases before the project commenced and suggested their warnings should have been heeded.
Council Response
A spokesperson for the City of Busselton stated that the city would not comment on the matter until the KPMG report was formally considered at its council meeting.