Yesterday, Thursday 18 February, our partners at the Coffs Coast Independent News (CCIN) Facebook site published an open letter to all Coffs Harbour Councillors on the cost of the new Civic and Cultural Centre in Gordon Street.
CCO had some input into the questions asked in the open letter.
The first response is from Cr Sally Townley. (pictured above).
Immediately below we publish the open letter and the questions therein and below that we publish Cr Townley’s response made via the CCIN and Citizen’s Voice Facebook sites,
Cr Townley’s response
“Hi all, forgive the brevity of my answers. Happy to discuss further, prefer by phone or email but will check in here from time to time too.
The contract will come to the next Council meeting (likely) keep an eye out today for the agenda.
Q1 Building costs have certainly risen since the cost estimates were derived and lots of details are now more known than they were then. Personally, I think if the cost over-run is more than 10%, (for the build contract) for me that would be a trigger.
Q2 As above, the contract for assessment at next meeting is ‘design and build for a fixed price’. I think about 80% of the design is finalised, about 20% will be at the builder’s discretion (in conjunction with project team).
Q3 Council has been offered loan by T Corp less than 2% with rate fixed for 20 years (a 30 year loan). Or can seek from bank. Current loan liabilities are around $8M per year costs (interest). As Council pays down its current loan liabilities (around $230M), loan costs will reduce from these other major loans (finished sometime after 2030 I think?).
So to borrow the money (as is usual procedure for large infrastructure projects) will see an increase in TOTAL liability for about three years, then reducing as other infrastructure loans are paid down and ultimately paid out. Hope that makes sense, happy to chat further, off to work now.
Thanks for the questions. Keep them coming, I will do my best to answer (may take a few days sometimes!).”