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read moreThe cost of the proposed Hobart stadium is likely to be higher than $750 million suggested at the time of the project’s unveiling in March - with the figure revealed as having merely been a "ballpark" amount.
Documents released this week show that the first time costs to build the stadium were discussed by Tasmania's State Growth Department was on 22nd February - one week before it was announced to the public
On 23rd February, the Waypoint consultancy provided a "ballpark" estimate of cost, noting "there is no design, no site information and no defined scope at this stage".
Opposition spokesman Dean Winter said Tasmania could not afford to build a floating stadium during a cost of living crisis
Advice on the cost of constructing the on-water stadium in Hobart was described as "very high level" by the agency that provided it, less than a week before the "game-changing" project was announced by former Tasmanian Premier Peter Gutwein.
Right to information documents show the 22nd February cost discussion was included in a 22nd February internal government email - whose sender has been redacted - asked for feedback on a draft of "our" State of the State speech, saying in regards to the stadium that "I think we will need to say when we think it will start and finish and I have said $750 million!"
The following day, Wednesday 23rd February, Waypoint group provided some "very high level" advice on how much a stadium could cost, noting "there is no design no site information and no defined scope at this stage".
The email read:
"Using the above very high level guidance (I say that because there is no design, no site information and no defined scope at this stage) you could come up with the following cost …
25,000 seats @ $13,000 = $325,000,000
Add roof at say $250,000,000
Total = $575,000,000
Add escalation for say 2 years @ 5% / yr = $57,500,000
Add Tas market loading at 20% = $115,000,000
Total = $747,500,000
Add site specific costs = $?????
"I reiterate this is ballpark cost advice! I hope this helps."
The email from Waypoint Group was sent on the evening of 23rd February.
A subsequent email to the head of State Growth, Kim Evans, from an unknown sender, sent at 9:23pm, said "in relation to a southern stadium it appears conceivable that it could be delivered for a cost that is in the vicinity of $750 million, noting of course the significant factors of not yet having a design".
Evans then sent an email to an unknown recipient 25 minutes later, saying, "based on this reckon (redacted) words in the speech look fine."
The documents show Evans had been liaising with the Tasmanian Premier's office on the State of the State speech.
There had also been no detailed investigation of the site conditions.
Last week’s Tasmanian budget included $1.25 million for a feasibility study into the project but no commitment of further funds.
Image: Concept for the proposed Hobart Stadium. Credit: Philp Lighton Architects.
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10th September 2012 - Waypoint to assist with regional tennis infrastructure plan
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