Walyalup Koort renewal project achieves its goal

A Fremantle Council committee has endorsed a report on the renewal of Walyalup Koort and noted the project’s intended outcomes have been achieved.

The report showed the total cost of the project – including the demolition of the City’s old administration building, construction and fit out of the new Walyalup Civic Centre and library, public realm enhancements, architect and project management fees – totalled $61.2 million.

The final construction cost of the Walyalup Civic Centre building was $49.6 million.

The report, endorsed by the council’s Audit and Risk Management Committee last night, was prepared to clarify the final cost of the project.

Chief Executive Officer Glen Dougall said the revitalisation of the civic heart of Fremantle, the largest project ever undertaken by the City of Fremantle, had been a journey spanning over two decades.

“Fremantle Council decided to replace its ageing administration building as far back as 2004, and an Economic Development Strategy adopted in 2010 identified the Walyalup Koort precinct, formerly Kings Square, as a priority area for redevelopment in 2010,” Mr Dougall said.

“The Kings Square Business Plan adopted in February 2013 provided the details for an integrated project that would see the sale and redevelopment of council owned properties in the Kings Square precinct, along with redevelopment of the former Myer building for the purposes of commercial office and retail accommodation.

“The objective of the development was to achieve a civic, retail, commercial and community hub reflecting its unique place as the centre of Fremantle and creating a vibrant, active and safe place for citizens and visitors, as well as a leading-edge development demonstrating confidence in Fremantle as a place to invest.

“In 2013 the estimated cost of the renewal of Kings Square – including a new civic building, library and public realm improvements – was $44.7 million. Adjusted for inflation, that figure could be $56 million in today’s terms.

“The fixed price contract signed in 2017 to build the Walyalup Civic Centre was $43 million.

“Independent quantity surveyors estimate the same building contract awarded in today’s market would be $55 million, a 27 per cent increase on the contract achieved.

“It should be noted that Pindan, the head contractor engaged to construct the Walyalup Civic Centre, went into liquidation during construction of the project.

“Fortunately, the protections we placed in the contract, such as the use of a project bank account and insurance bonds, meant the City was able to complete the build with minimal disruption and no additional City funds being required.

“Considering the size and complexity of the project and the challenges faced during construction, including the Pindan collapse and the supply chain disruptions caused by COVID-19, a final construction cost for the Walyalup Civic Centre of $46.9 million is an acceptable outcome.”

Fremantle Mayor Hannah Fitzhardinge said it was important to reflect on why the council decided to go ahead with the project in the first place.

“Ten years ago, Freo’s local economy had stagnated, Kings Square had become a dead spot in the heart of the City, Myer was moving out, and Hoyts were not renewing their lease on the Queensgate Cinema complex. Something was needed to give the city a boost and restore confidence,” Mayor Fitzhardinge said.

“In addition, our old building was full of asbestos, had concrete cancer and didn’t meet modern accessibility standards. We had a report that said it was going to cost more to renovate the old building than knock it down and build a new one.

“It was also going to cost around $14 million to convert the Queensgate Cinema into usable office space, and the Queensgate car park also required millions of dollars in renovations.

“Fast forward to today, and the Walyalup Koort renewal project has delivered the award-winning Walyalup Civic Centre and library, refreshed public spaces, the vibrant new FOMO precinct, and almost 2000 state government employees working in the new offices of the Department of Communities and Department of Transport.

“More importantly, it has restored confidence in Fremantle and been the catalyst for the almost $2 billion worth of investment either underway or recently completed in Fremantle.”