Frankston Basketball Centre
Frankston Basketball Stadium Update
Given the recent publicity regarding the $13 million Frankston Basketball stadium redevelopment, Council would like to take the opportunity to ensure the facts are put before ratepayers in order to correct misinformation and to provide clarity on these matters for the entire Frankston City community.
Our focus has always been on getting this project delivered. While the Frankston District Basketball Association (FDBA) seems eager to conduct its negotiations through the media, we have tried to resolve matters in a more constructive manner. They have also now called in lawyers, costing their members and the community more money.
In 2015, Council and the FDBA reached agreement on all aspects of this project bar the amount of rent payable. Council is disappointed that the FDBA now refuses to accept nearly every clause of this agreement.
The key issues are
For the existing premises, the FDBA pays an annual rent of $32,304 per annum, plus a discounted building insurance of $5,500 per annum. While Council had initial discussions with the FDBA over a base rent ($60,000) plus a proportion of its turnover for maintenance of the new facility, this was taken off the table some months ago. Council is currently requesting $60,000 per annum with rent reviews consistent with standard business practice. This is a net increase of $22,000 per annum for a $13 million investment - negligible by any standards.
Further, in comparison with similar facilities across the state the offer to the FDBA is fair and lower than others as depicted below.
The FDBA is refusing a future Council the opportunity to conduct an objective review of the rent payable. Council is requesting a rent review to ensure the amount is fair for the FDBA and the community. The total lease term the FDBA is requesting is for 40 years.
To assist in setting up an agreed mechanism for the review, we have asked the FDBA to provide Council with its detailed accounts - something which it is required to do under its current lease. Although boasting a $2 million turnover, the FDBA has refused to provide these documents.
Scope of Works
Council is committing $4.6 million of ratepayer funding to this project and right from the beginning it was agreed that this figure was capped and that the scope of the project would be trimmed to fit the budget. Now the FDBA, after it signed off on the scope and participated in the construction tender evaluation, is demanding Council commit to more than $3 million in additional expenditure.
It would seem that agreements with the FDBA are not binding. It gives Council no pleasure being in dispute with a valued community organisation, however Councillors must act in the best interests of the entire municipality. Every extra dollar spent on this development is one dollar less spent on other community needs. For example, $3 million could buy us two new multi-purpose sports pavilions, three new preschool centres or pave 75 km of footpath. Projects such as these are also a priority to Frankston City.
Council calls upon the Frankston District Basketball Association to come to the table, cease its “winner takes all” adversarial approach and negotiate in the best interests of their members and the entire Frankston City community.
Stage one of the project includes
- Four new courts including a new ‘show court’ with approximately 600 seats
- New entry, reception and merchandise area
- Café with commercial kitchen
- New change rooms, referees rooms and accessible toilets
- Administration refurbishments
- Storage, lift and stairs
- Renew the asphalt car park (approximately 100 spaces) and lighting
- Gravel car parking spaces (approximately 200)
- Exterior works including paving at entry to meet disabled access requirements
Images and Plans
- There are plans and images on the Open Gallery function
Impact on the area
Works are being staged to minimise disruption.
A temporary stadium entrance will be open on the north side of the Basketball Centre with minimal disruption to games and players.
Access will continue to be available to the other sporting pavilions at the Reserve.
There will be some impact on access to car parking at Kananook Reserve and the stadium.
Parking restrictions will mostly affect all-day parking currently used by commuters, particularly in the early stages of the project while the car park works are underway. Commuters are advised to explore alternative travel arrangements.
All-day parking is also available at Seaford North Reserve, Railway Parade, close to Seaford Station.
Frankston City Council
30 Davey Street
P. 1300 322 322