North Sydney pool redevelopment progresses at snail pace, costs skyrocket

By LAUREN FROST

Ballooning costs and a slow pace of construction have marred a controversial redevelopment of the North Sydney Olympic Pool. These issues mean the pool will not host major swimming events until next year at the earliest, despite an initial re-opening date of November 2022.

Duncan Rennie, new Manager of Leisure and Aquatics for North Sydney Olympic Pool, said, “there has been so much work done already to ensure that we’ve got rid of all of the dilapidated parts of the centre, but retain those lovely historic art deco walls and other features that you enjoyed when you used to come here previously.”

“With new inclusions, we’ve got more aquatic space, we’ve got a newly located creche, we’ve got a relocated gym, which is much larger, a leisure pool, a splash pad, and plenty of space for you to come and just enjoy the views with friends and family,” he said of the upcoming facility.

However, the pool has garnered controversy due to concerns over its heritage impacts, significant delays in development and its grossly underestimated original budget.

According to a council-commissioned independent review, the project is now forecast to cost a whopping $89 million, which is $31 million more than initial estimates.

Moreover, although the pool was initially set to re-open in November 2022, North Sydney locals won’t be able to make use of the new facility until at least April next year.

The delays and ballooning costs of the project have been put down to La Nina rain events, pandemic-related supply chain issues, staff shortages, and hazardous onsite materials including asbestos.

However, the review also notes that North Sydney Council is not well-versed in such large and complex development projects.

Mayor Speaks Up

In an open letter to the North Sydney community on April 14th, North Sydney Mayor Zoe Baker spoke of the inadequacies of the initial budget following the commissioned review of the project.

“Taking into consideration the findings of the PwC report, it is clear that better project planning and governance in the pre-construction phase would have created a stronger foundation for this project and importantly anticipated some of the risks that have now been realised,” she said.

“It was clear the budget for the project was not sufficient in the first place, considering the risks that had been accepted.”

“PwC noted that a primary driver of decisions during the planning phase was the desire to control the project budget,” the Mayor revealed.

“This resulted in decisions creating false economies such as removing the external project managers, deciding to proceed with separate design and construct contracts, and not allowing a contingency that took into consideration the risks relevant to the project.”

“Costs such as the fit out of the gym and creche, required repairs to the Aqua Dining building and eastern stair tower were not included in the project, nor was sufficient funding for internal project management costs and consultancy,” she continued.

Mayor Baker also noted that although there was “no-doubt” that the facility needed revamping. Alterations were made to initial early project plans that “did not fully align with the feedback from community consultation.”

Twitter users have also been quick to point out that part of the funding for this project was taken from grants from the Female Facilities and Water Safety Stream, which is aimed at regional areas.

“For people outside NSW, this absolute farce was actually funded by the former NSW Liberal government from REGIONAL grants!!!” one user wrote.

For people outside NSW, this absolute farce was actually funded by the former NSW Liberal government from REGIONAL grants!!!

Next steps for controversial $89m North Sydney pool redevelopment @smh

— Rick (@colonelhogans) July 9, 2023

“I read in the SMH today that the North Sydney Olympic Pool is way behind schedule & massively over budget. I guess that’s what happens when you build an Olympic pool in regional NSW,” another user said.

I read in the SMH today that the North Sydney Olympic Pool is way behind schedule & massively over budget. I guess that’s what happens when you build an Olympic pool in regional NSW.

— Justin Brash (@just_brash) July 10, 2023

The North Sydney Mayor, however, does not seem to be concerned about Council finances despite the project significantly exceeding initial budgets.

“I can assure you that Council’s finances are sound, and the additional cost can be managed without reducing service levels,” Mayor Baker wrote in April.

“Whilst Council is in a position to manage the cost overrun, this Council understands that it comes at an opportunity and social cost to residents and ratepayers who will not get upgrades to other facilities they regularly use.”