City confirms scope of civic accommodation project

THE City of Greater Geelong has confirmed the scope of its plan to consolidate nine of its offices into a single building.

Councillors resolved to refer initial recommendations from the civic accommodation project for public consultation at their meeting last week.

One of the recommendations of the commission of inquiry into the council was the need to consolidate the city’s office accommodation to unify the organisation and reduce inefficiencies.

The existing arrangement costs ratepayers more than $2 million in rent and $1 million in operational expenditure every year, including staff travel between offices, separate IT and Communications systems, maintenance costs of older buildings and high energy costs.

The scope of the project has been confirmed as 10,000 square metres of office space, active retail space and 120 car parks, with a budget of up to $91 million.

According to the report presented to councillors, an assessment of the financial implications (carried out by Ernst and Young) found it would cost the city $96 million over the next 25 years if it did nothing and did not consolidate its central offices.

Renting a single office building would cost $75 million, while the total cost of owning and constructing a new building would be $40 million after loans were repaid.

These costs assume the full cost of the “build and own” option would be funded from new borrowings. However, if asset sales were partly used to fund the project, the long-term cost for this option would be reduced.

The city consolidating its offices in a new site also means Geelong Gallery may be able to expand into City Hall, subject to government funding.

“This project will bring Council into the 21st Century, consolidating operations, reducing inefficient assets and creating a City of Design building,” Geelong mayor Bruce Harwood said.

“It will also open up huge opportunities for Geelong’s arts and culture precinct.

“This is again Council demonstrating a willingness to move the city and region forward in a positive manner.

“I look forward to seeing some positive and creative suggestions from the community during the submission period.”

Recommendations for the civic accommodation project are open for community submissions until August 28. Head to geelongaustralia.com.au/yoursay.