Red flags have been raised around a controversial proposal to construct a multimillion-dollar aquatic facility in Thames.
Thames-Coromandel District Council has received more than 1500 submissions as it works on a business case, which also includes risk assessment, detailed financial analysis, and modelling on how the facility can be funded.
Centennial Pool is located on a sacred burial ground, and would close soon. Four alternative options have been tabled - the most expensive would cost up to $77 million.
A report tabled at the Thames Community Board meeting on Wednesday showed that council staff had significant concerns about the financial impact on Thames ratepayers following financial analysis.
Due to the low ratepayer base of the Thames ward (5525), low median personal income level there ($26,214) and limited borrowing capacity, staff concluded further investigation was needed to identify an aquatic option the community could afford.
In a report to the council, project manager Cathy Trentham and Thames area manager Rosaleen Ward said some key funding assumptions, particularly around external funding for the project to reduce ratepayer impact, had “deteriorated”.
Thames Community Board chairman Adrian Catran has been contacted for additional comment.
The report said the financial analysis brought the full costs of the aquatic options into the spotlight, including operational ones, depreciation and future renewal requirements.
“In light of this information, staff are concerned about the affordability for Thames ratepayers of implementing options A – C if 100% funded by Thames ratepayers or funded via a local / district split for rates.
“It may be possible to source external funding towards the cost, however, in the current funding landscape Sport Waikato’s advice is that grant funding from external funders is likely to be minimal.”
Four options tabled
A new local aquatic facility with all indoor pools on Thames High School grounds – estimated build cost up to $42.5m.
A new local aquatic facility with a mix of indoor pools and an outdoor pool on the school grounds – estimated build cost up to $36.5m.
A new sub-regional aquatic facility with a bigger mix of indoor pools in Kopu south – estimated build cost up to $77m.
No investment in aquatic provision and Thames Centennial Pool is removed - estimated cost to remove Centennial Pool and restore Taipari Park up to $550,000.
A feasibility study completed in February showed the current aquatic network across the Coromandel was dominated by ageing outdoor pools.
There was an under-supply of quality learn-to-swim, hydrotherapy and leisure water facilities across the catchment.
The feasibility study showed there was support for improved aquatic provision and the greatest support was for indoor, all-year provision with the basics: learn to swim, play and fitness.
A new local aquatic facility with a mix of indoor pools and an outdoor pool on Thames High School grounds – estimated build cost up to $36.5 million.
Senior council staff were continuing the investigation of aquatic options and had identified the need to reduce the scope of aquatic facilities and level of service in accordance with the priorities identified in the Thames and wider sub-region aquatic provision needs assessment (2022) including a learn-to-swim pool, structured lap pool, casual play features, and a programme pool.
“Reducing aquatic options may not meet all the needs identified in the 2022 needs assessment but will improve the affordability of the project.
“Staff have therefore adjusted the timeline to complete the business case as an aquatic facility has a high level of importance to the community.”
Visitor Solutions was undertaking further investigation on aquatic options that would cost less to implement.
“The scope for the investigation includes prioritising the investment objectives and confirming the affordability level, a workshop to scope options, stakeholder engagement and development of feasible options.”
Once the options had been confirmed, the scope would include design, quantity estimate, an engineering review if required, operational modelling, and financial analysis.
Following the additional investigation, the draft business case would be finalised to include the additional aquatic option(s).
The further work had been funded from the project contingency and remaining facilities budget from 2023/2024 and a small portion from the facilities budget in 2024/2025.
Staff expected to report on the final business case to the community board in late 2024.
