Regional Community, Sport and Recreation Precinct

The City of Victor Harbor has resolved to extend the Heads of Agreement for the Regional Community, Sport and Recreation Precinct (the Precinct) project to 15 December 2025. This extension will enable continued negotiations with the proponent, Accord, and allow Council additional time to finalise key decisions regarding the future operations of the recreation facility within the Precinct.

The extension also supports Accord’s efforts to finalise detailed design and submit planning approvals in November, which are essential for securing major grant funding.

Significant progress has been made to bring this project to life. Most recently this has included the completion of detailed financial modelling, risk analysis, a business case, and the preparation of a prudential report which are steps undertaken in response to community feedback and Council’s decision to explore the option of operating the Recreation Facility itself.

Originally, the proposal with Accord required a one-off contribution from Council to initiate the project, with ongoing operations managed externally. However, Council’s shift to consider direct operation of the facility has required a rigorous assessment of financial and operational implications. These efforts reflect Council’s commitment to ensuring the long-term viability and sustainability of the project for the Victor Harbor community. Council recognises the complexity of projects of this scale and remains committed to taking the time necessary to secure the best possible outcome for its community.

The $41+ million Precinct project is a landmark investment in Victor Harbor’s future. In addition to the Recreation Facility, the Precinct will deliver critical infrastructure including a childcare centre and allied health facilities. The project also features a large-format entertainment offering that will provide indoor recreation and entertainment options for both locals and visitors, which responds directly to community feedback that such amenities are currently lacking.

Council remains focused on delivering a facility that meets community needs and expectations. The next decision point will be determining the preferred operating model, which will trigger the next phase of formal negotiations.

The Victor Harbor Regional Community, Sport and Recreation Precinct (the Precinct) has reached another key milestone, with Council endorsing the concept floorplan for the new recreation facility at its July 2025 Ordinary Council Meeting.

This important step paves the way for detailed design to begin, bringing this exciting community project closer to becoming reality.

The concept floorplan was shaped in partnership with a dedicated stakeholder reference group, including representatives from:

• Local schools
• Great Southern Amateur Basketball Association
• Victor Harbor Gymnastics
• Great Southern Badminton Association
• Southern Sharks Pickleball
• Council’s Disability Access and Inclusion Committee

Their input was highly valuable in refining the layout and features of the facility. Thanks to their important insights, the plan now includes:

• Increased spectator seating capacity
• A dedicated gymnastics area with provision for a foam pit
• An accessible Changing Places facility
• A revised Precinct layout relocating the recreation facility to the Armstrong Road side of the site for improved access, better flow, and more room for future expansion, such as additional courts.

While a mezzanine level was originally considered, early cost estimates showed it would add $2 million to the project. Council made the responsible decision to prioritise function, affordability, and long-term value, ensuring the core needs of all users are met without unnecessary cost.

Spectator seating will still be well supported through integrated solutions around the multi-purpose courts within the stadium.

View the adopted concept floorplan.

The City of Victor Harbor is negotiating delivery of the highly anticipated Regional Community, Sport and Recreation Precinct (the Precinct) with South Australian developer and fund manager, Accord.

Accord, established in Adelaide in 2015, is well-equipped with a proven track record to assist Council achieve its vision for the Precinct. The proposed collaboration between the Council and Accord provides an innovative solution to deliver important facilities that will help support growth, enhance liveability and support positive wellbeing outcomes for the Victor Harbor community.

The announcement comes as negotiations between Accord and the City of Victor Harbor focus on the operating model for the sport and recreation facility within the Precinct.

“Exploring this partnership highlights the Council’s commitment to sustainably delivering strategic infrastructure projects that aim to serve our growing community now and into the future,” said City of Victor Harbor Mayor, Dr Moira Jenkins.

“By partnering with Accord we have an opportunity to deliver a transformative project that will provide our community with much-needed facilities without the whole financial burden being placed on our ratepayers.”

“Through this approach the Council can leverage the strengths and capabilities of Accord to deliver a mix of important community facilities that otherwise would be unaffordable.”

“While we are still negotiating the terms of the partnership with Accord, this announcement aims to provide the community with a level of comfort that the Council is engaging with a well-qualified, community-focused proponent who aligns with our values and vision.”

Managing Director, Lachy Hogarth said Accord is excited about the opportunity to partner with the City of Victor Harbor to bring this project to life.

“The Precinct represents a significant investment in the region’s future, creating a space where sport, recreation and community can come together,” said Mr Hogarth.

“Accord’s focus is on delivering a high-quality, sustainable development that will provide lasting benefits for the Victor Harbor community. This project will not only deliver essential facilities but also stimulate local economic growth and attract more families to the area.

“We believe in creating places that foster connection, wellbeing and opportunity. The Precinct will be more than just a collection of buildings – it will be a vibrant hub that meets the evolving needs of the community, now and into the future.”

The proposed partnership focuses on addressing pressing regional needs through the delivery of the Precinct development which includes a multi-purpose sport and recreation facility, childcare centre, community spaces, a hospitality offering and retail opportunities.

City of Victor Harbor CEO Victoria MacKirdy said the Proponent announcement comes as work gets underway on the detailed design for the cornerstone of the Precinct, the sport and recreation facility.

“It is important to commence detailed design of the sport and recreation facility now to get us into a favourable position to secure grant funding for the project,” said Ms MacKirdy.

“A reference group of stakeholder representatives is coming together to work with the project team to provide input into the detailed design and ensure the facility is fit for purpose and meets community needs.”

Negotiations between the project partners are currently focused on the operating model for the Precinct, and a final decision to proceed with the project is expected to be made following the completion of this due diligence in the coming months.

While it is not normal practice for the City of Victor Harbor to respond to ‘Letters to the Editor’ there has recently been a string of letters within this publication that present opinion as fact on the proposed Regional Community and Sporting Recreation Precinct and it is important that clarifications are made.

Firstly, no detailed design work has begun at this stage. It is intended this will commence for the recreation facility component of the project soon and stakeholders, such as the Great Southern Amateur Basketball Association, will be consulted during this process to ensure the facility is fit for purpose and meets community needs.

The cost of the recreation facility is approximately $25 million, with Council contributing $11.7 million towards this. The other components—childcare, allied health, and food services—are proposed to be developed through a Public Private Partnership at the Proponent’s expense, providing income to the Council through ground leases and rates. The total development value is proposed to be $41 million. The proposed collaboration between public and private sector combines strengths and capabilities to help build this infrastructure for the community that would otherwise be unaffordable for Council without significant external funding.

Council is also exploring various operating models for the recreation facility, including self-management, in response to concerns raised by community groups like the local gymnastics club about the proposed third-party operator put forward by the Proponent. There is significant modelling to be undertaken to fully understand the implications of Council taking on the operations. This work is being undertaken now as a priority as a part of the negotiations between Council and the Proponent.

The framework for this negotiation is outlined within a Heads of Agreement (HOA). The HOA does not commit Council to progressing with the partnership. A final decision will be made once due diligence is completed, which is still some time away.

The City of Victor Harbor is working hard to ensure this project is in the community’s best interest. While affordability is a key consideration, fees for community to access the centre will need to reflect the quality of the facility and be in line with similar regional facilities in South Australia. At the end of the day, we know that for this Precinct to be a success, people need to use it and the prices need to be competitive.

Finally, Council has released all available information to the community, with only legal or commercial details being withheld to protect ongoing negotiations. We are committed to transparency and will continue to provide updates via our website and other communications channels.

Council remains focused on affordability and financial sustainability, balancing the expectations of those for and against this project.

We encourage you to keep up to date with the latest project news via our website www.victor.sa.gov.au/theprecinct

The Council is still in negotiations with a developer relating to a proposal to deliver the Regional Community, Sport and Recreation Precinct (The Precinct) for our community. Negotiations of this nature are complex and require significant due diligence. There are still several decision points to come.

Council has provided our community with as much information as we can to keep you up to date with how the project is progressing, however there are elements that remain commercial-in-confidence to protect the Council (and our community) and the developer. This is not unusual for projects like this.

Earlier this week Council released that Belgravia, a leisure management provider, has been put forward by the developer as the preferred operator of the recreation component of The Precinct (similarly as the YMCA runs the Fleurieu Aquatic Centre). As a part of the negotiation process, Council is exploring a range of options, including whether it is viable for Council to operate the facility itself. It is important to note that Belgravia is NOT the developer that Council is in negotiations with.

While Victor Harbor Youth Club, our local gymnastics group, has advised they want to remove themselves from negotiations for the project, the Council is still keen to engage with the club about its future to achieve an outcome that benefits all.

We know there are great expectations from many within our community when it comes to delivering The Precinct. Please be assured that our community continues to be at the forefront of our planning.

We will continue to keep our community updated as the project planning continues.

The City of Victor Harbor’s 2024/25 Annual Business Plan and Budget was adopted at a Special Council Meeting on Monday, 8 July 2024.

Balance has been key in the preparation of the budget as Council works to keep rate increases to a minimum, while providing for a selection of projects and initiatives that service the needs of the community now and into the future.

City of Victor Harbor Mayor, Dr Moira Jenkins, said Council has a responsibility to invest appropriately in Victor Harbor for now and the future.

“Our actions today, set us up for success tomorrow,” said Mayor Jenkins.

“We are balancing the delivery of core services relied on by our community – such as waste management, roads, footpaths, library, economic development, public safety, youth and aged services, and more – while also planning for our rapidly growing population.”

The 2024/25 budget forecasts a capital works program worth $14 million (net) and operating expenditure of $40.5 million resulting in a $4 million deficit. The deficit is attributed to expenses for the progression of the Regional Community, Sport and Recreation Precinct (The Precinct) project and phase two rollout of Council’s corporate systems update that will help achieve efficiencies well into the future. It will be funded through borrowings in recognition of the intergenerational benefit the projects provide.

To find efficiencies and cost savings, the budget was developed from a zero base. The Consumer Price Index (CPI) has only been applied where absolutely necessary, and only to relevant materials and supplies.

Price increases have been absorbed as much as possible, as Council has done for the past three budgets, and staff will continue to seek additional savings over the year. While cost savings have been found in many project areas, an average rates payable increase of 6.0% is still required in order to maintain Council’s financial sustainability.

“There is no doubt that households are struggling with cost of living pressures. Councils across South Australia have been trying to find efficiencies for their communities while still delivering a broad range of essential services relied on by many,” said Mayor Jenkins.

“The Council has kept the 2024/25 average rates payable increase as low as it can, without impacting our financial position or the requirement for more significant increases in the future.”

The Precinct is set to be Council’s flagship project in 2024/25 and has been a hot topic within the community over the past several months. The $2.5 million budget allocation provides a necessary provision for the project to move forward, should the Council resolve to do so.

“The Precinct will be the single largest civic investment on record for the Council. We have meticulously planned this project with our community at heart and know that what is to be delivered will support the southern Fleurieu region for many generations,” said Mayor Jenkins.

“There are still several steps to go in this project as negotiations with a private consortium continue over the coming months. The Council is very aware of the magnitude of the decisions to come and is undertaking rigorous due diligence to ensure it achieves the best outcome possible for our community.”

In adopting the 2024/25 Annual Business Plan and Budget, the Council noted large numbers of engagement from the community during the consultation periods.

“During both our early engagement phase in November 2023, and our recent consultation on a draft document, we heard from a large number of people within our community,” said Mayor Jenkins.

“I’d really like to thank everyone that dropped into one of our listening posts or completed a survey. Your contribution is valued and was taken into consideration before the budget was adopted.”

To view the 2024/25 Annual Business Plan and Budget, please visit victor.sa.gov.au/abp

During the recent consultation period, it is estimated that over 26,000 people were reached either online, in person, directly or via media. More than 200 formal written submissions/survey responses were received. View the Community Engagement Summary.

At the June Ordinary Council Meeting, having considered all feedback provided by the community and stakeholders, Council Members endorsed continuing with the community land revocation process.

Progressing with the community land revocation process is one step within the next stage of The Precinct project. There are still several steps to go before Council makes a final decision on progressing The Precinct.

The proposed revocation of community land status aims to facilitate the development of Council’s flagship project, the Regional Community, Sport and Recreation Precinct (The Precinct).

Following significant investigations and analyses to determine the feasibility of the project, towards the end of 2023 the Council made the decision to explore potential private sector partnership opportunities as a way to balance the financial impact associated with the delivery of such significant community facilities.

A potential partnership was identified through a formal expression of interest process and commercial-in-confidence negotiations are underway. The negotiations aim to set out the terms of any future partnership and define parameters around the delivery of The Precinct with the best interests of the community being paramount.

To make the investment in The Precinct viable, the developer requires a long-term lease (99+ years) which is beyond the term allowed under the current community land classification. To progress negotiations, the Council is seeking feedback from the community on the proposed revocation of the community land classification for a portion of land at Allotment 202 Armstrong Road to enable the potential partner to enter into a longer-term lease and deliver the much-needed community facilities.

City of Victor Harbor Mayor, Dr Moira Jenkins, said the proposal would see only a portion of the site revoked as community land status.

“It is only a portion, just over 30%, of Allotment 202 Armstrong Road, that we are seeking to reclassify. The remaining portion of the site will remain as community land. Under the proposal the Council will also retain ownership of the entire allotment,” said Mayor Jenkins.

“The Council has looked extensively at a range of options to deliver an indoor sport and recreation facility for our community and the partnership opportunity is stacking up to be an appealing option.”

“While the negotiations are still being finalised, an initial draft proposal would see the development of The Precinct for around $40 million. Council’s contribution would be $11.7 million over two years with no further ongoing subsidy. Four multi-purpose courts and gymnastics area, as well as childcare, retail and food and beverage offerings are included.”

“The upfront costs for the proposal are significantly lower than what was estimated for Council to construct and operate the facility itself and includes the addition of much-needed childcare and allied health facilities. All of which could potentially be up and running mid-2026.”

Whenever it is proposed that community land status will be revoked, Council must prepare a report for public consultation/consideration and to provide to the Minister for Local Government.

A Community Land Revocation Report has been prepared in line with the requirements of the Local Government Act 1999, and the Council now invites submission on the proposed revocation.

Submissions must be lodged with Council before 5pm on Tuesday, 11 June 2024.

We are pleased to let you know that following the Expression of Interest process, which attracted strong interest from the private sector, Council and its commercial advisers have identified a potential partnership opportunity to bring The Precinct to fruition.

This is a very exciting milestone and puts us another step closer towards sustainably delivering this region-shaping piece of community infrastructure.

The next phase of the project will see Council enter into commercial-in-confidence negotiations to progress commercial terms that ensure the partnership provides the best outcome for our community. This phase also includes further legal, commercial and prudential due diligence.

The negotiations will take place over the coming months and it is expected we will be in a position to provide an update in April 2024.

We know there are great expectations from many within our community when it comes to delivering The Precinct. Please be assured that The Precinct remains the Council’s top priority major project and the latest decision is an exciting step forward.

We are pleased to advise that Council’s Commercial Advisors, Alinea Group, have launched an Expression of Interest (EOI) seeking proposals from qualified and well-credentialled groups to deliver innovative development and operating solutions for The Precinct.

The EOI will run until 5pm on 16 November 2023, following which proposals will be assessed and considered by Council.

The Information Memorandum prepared to support the EOI process can be viewed on Council’s website.

You will note the Information Memorandum includes a high-level concept plan. This has been included for inspiration only.

Please be assured that the Council continues to work towards the delivery of a diverse and inclusive precinct. The final design will be developed with consideration of community needs and future sustainability.

We will continue to keep you informed as this project progresses with the next update likely to be at the conclusion of the EOI process later this year.