Council confirms preferred operating model

The City of Victor Harbor has taken another significant step forward in the development of the Regional Community, Sport and Recreation Precinct, confirming its preferred operating model for the future recreation facility.

At the Special Council Meeting held on 5 February, Elected Members resolved to progress negotiations on Model 1, a structure where the developer, Accord, constructs the recreation facility and an independent third party is appointed to operate it. Council identified this model as the most financially sustainable option with the lowest level of community risk.

Model 1 offers a range of financial advantages, including a quicker return to Council’s target financial range, a lower annual operating contribution compared with a Council-run model, and the avoidance of major depreciation liabilities. Importantly, it shifts construction, operational and financial risks to the private sector, ultimately reducing the impact on ratepayers.

City of Victor Harbor Mayor Moira Jenkins said ensuring the community retains access to high quality recreational facilities has been a key consideration throughout the process.

“Council will continue to negotiate strong community access provisions into any agreement, including priority usage times and fair pricing. These details will be shaped in consultation with key stakeholders as Council progresses negotiations on the Agreement for Lease,” Mayor Jenkins said.

“We are committed to working closely with key groups like the Great Southern Amateur Basketball Association and Victor Harbor Gymnastics Club to ensure their needs and concerns are well understood and addressed. At the same time, we must carefully balance the interests of these clubs with the broader community’s access to the new facility.”

The decision on the preferred operating model follows extensive investigations and the completion of a comprehensive Prudential Report, confirming Council’s commitment to due diligence. Council has also resolved to extend the project’s Heads of Agreement until 30 April 2026, providing additional time to prepare and finalise the Agreement for Lease.

Several related project processes remain ongoing. The Community Land Revocation proposal for a portion of the land remains with the Minister for Local Government for consideration. Pending approval, a further Council decision will be required to finalise the revocation process.

Accord has lodged a development application for the Precinct. The application is currently under assessment and will be subject to public notification in due course in accordance with requirements of the Planning, Development and Infrastructure Act 2016. Council is also awaiting the outcomes of several grant funding applications.

Valued at over $41 million, the Precinct project represents a significant investment in Victor Harbor’s future. Alongside the recreation facility, the development will unlock vital community infrastructure such as a childcare centre and allied health services. It will also deliver a large-format entertainment offering, providing indoor recreation and entertainment options for residents and visitors alike.