A proposed boutique sports stadium in Dandenong will cost a staggering $237 million, according to a long-awaited business case and feasibility review.
In a sign of rapidly changing finances, the price tag for the Dandenong Sport and Events Centre is more than double the $110 million touted 12 months ago.
The stadium, seen as a key to re-energising the ‘Revitalising Central Dandenong’ concept, is now on hold for at least the short term.
Greater Dandenong acting chief executive Paul Kearsley said “more detailed planning” was required into the proposal.
“More detailed planning with key stakeholders is required in order to progress the DSEC, which will inform the funding and ultimate timing and delivery of the project.”
The $237 million price for a stadium with stage 1 capacity of 15,000 people included contingency and escalation costs to 2026-’27, Mr Kearsley said.
Ultimately the stadium would cater for 19,500.
However, over a 30-year period, the DSEC would deliver back an estimated $284 million in economic benefits, Mr Kearsley said.
In its first year, about $16 million of “indirect/tourism expenditure” would be generated in Melbourne’s South East.
“The DSEC presents an opportunity to address a current lack of major stadia infrastructure in Greater South East Melbourne (GSEM) and delivers significant social and economic benefits to the region,” he said.
“The DSEC will help to create regional pride and cohesion, address high levels of social disadvantage and provide a catalyst to revitalise central Dandenong – leading to further economic growth and prosperity in the region.”
One of the project’s great proponents is Greater Dandenong councillor Jim Memeti.
However with the heavy price tag, the project can’t go ahead without state or federal funding, he said.
“For central Dandenong to work we need a big-ticket item like a stadium. Straightaway it would bring eight to 10 hotels along with restaurants and cafes that would revitalise the city.
“At least we’ve done the feasibility study. The council isn’t doing anything with the land … We’ll look at it again a year or two down the track.”
Mayor Eden Foster also said “$230 million is too much for the council alone”.
“It means a bit of advocating to our state and federal counterparts.”
Councillor Rhonda Garad said the “incredibly ambitious project” was now “unlikely to come to fruition”.
“In my mind, it’s extremely unlikely in the foreseeable future – given the number of high-cost projects in the council’s sights.
“It would be an extraordinary amount of money for the state and federal governments at this time, with the tremendous overspend on each of their budgets.
“We are really fighting for just basic amenities. Our schools and our hospitals have to be a lot bigger priorities than a pie-in-the-sky football stadium.”
The DSEC is earmarked for vacant council-owned land near Dandenong railway station and Carroll Lane.
Once the centrepiece of the council’s unsuccessful Team 11 bid, the stadium is hoped to host Melbourne City Football Club’s home games in the A and W leagues.
Other potential events include conferences, weddings, exhibitions, training programs, offices, eSports and community outreach.
The $200,000 business case and feasibility report by Deloittes was joint-funded by Greater Dandenong Council and the State Government.
The document has not been released to the public.
The council’s other major capital work projects such as Keysborough South Community Hub and DNA Gallery have been meanwhile delayed.
As a result, more than $20 million of unspent capital works funds were carried over to the council’s amended 2022-’23 budget.
Finance executive manager Michelle Hansen said project delays were caused by “Covid restrictions, the current economic environment, a change in project scope or requirements, a third party or authority delay, resourcing issues or because of interdependent projects”.
