A key goal has been to deliver the Civic Precinct without an increase in costs to our ratepayers.
Not only have we achieved that, we’re
expecting to deliver this project ‘rates positive’ with a cashflow return of
$1.2 million from rental returns, reduced energy costs and rates yield from
Quintessential Equity’s new commercial building within the precinct.
The total investment of both the City and Quintessential
Equity is around $200 million.
The City and Quintessential Equity have agreed to a
guaranteed maximum price of $94 million for the delivery of the City’s new
office building and public precinct, plus $8.5 million for the construction of
an additional floor in the City’s office building which will be tenanted out
until required for City office expansion, future-proofing the City’s workplace
needs in the one building for the next 20 years. This takes the City’s total
cost to $102.5 million, without any extra cost to the ratepayer, and with
numerous opportunities to reduce this cost over the next three years including
The City will work with Quintessential Equity to ensure costs
are kept within budget.
Funding for the project will come from borrowings and some
Interest rates have dropped significantly since the
original budget was calculated, meaning that the cost to build the extra floor
will be more than covered by rental returns, allowing the extra expenditure to
be paid off quickly. Building expansion space now means that the City will save
significant amounts of money in the long term when compared with renting or
purchasing additional office space in 10-15 years.
It also has the added
benefit of keeping the City’s central Geelong workforce within the one building
now and into the future.
Council determined that an increase in funds allocated to
the original budget of $91 million to achieve additional expansion space represented
a sound investment in the future of our city and region for the following key
- 13697 square metres gross floor area (the total floor space within the building) compared to original brief of 10,000 square metres gross floor area
- Creating a new public precinct, with the creation of 2600 square metres of active public space – about the same size as 10 tennis courts
- Value of final Council asset built and fully tenanted is estimated to be more than $120 million
- 517 square metres of Council owned street level retail compared to original brief of 300 square metres, generating positive rental return to the City
- Large flexible floor plates (the size of each floor in the building) of at least 2200 square metres compared with brief of minimum 1200 square metres floor plates
- 6 Star Green Star Design and As-Built Rating, and 6 Star NABERS Energy Rating is a significant improvement over the original brief of 5 Star Green Star and 5 Star NABERS, working towards the City’s 100 percent renewable energy commitment while significantly reducing energy costs
- Positive cashflow return of $1.2 million per annum from rental returns, reduced interest rates and rates returns from the second commercial building in the precinct, resulting in a reduced net cost of accommodating the City’s workforce over the next 20 years.
There will be no impact to the
City’s service delivery during the construction of the precinct.
caused by City staff relocating once the building is complete will be
communicated well in advance.
Any construction roadworks or disruption will
also be communicated in advance.