THE multi-million-dollar blowout in costs of the council’s CBD redevelopment project may soon be the subject of an independent review.
Cr Nicole Jonic has foreshadowed a motion calling for a third party to be appointed to undertake an overview of what caused the Venue and Cinema Building costs to skyrocket to more than $48m.
Council had previously agreed to do an in-house report on the matter when they approved millions in extra funding. The cost blowout has been put down to building defects in the old cinema building which included massive amounts of black mould, the collapse of the building’s sewer mains system and costs pertaining to council’s agreed fit-out for Hoyts Cinemas.
Council was aware of black mould issues in May last year before it signed a multi-million deal with Hoyts in August to be the main tenant of the building.
While the council has refused to reveal details of that agreement, it’s believed it involved council paying millions for the cinema fit-out.