Plans for a new 23,000-seat stadium in Hobart have been criticised by a Tasmanian Planning Commission panel, which has found the costs of the project to be approximately double its estimated benefits.
The panel’s report has also found that the stadium would present an “overbearing” appearance and negatively impact people’s spatial experience.
The Macquarie Point Development Corporation (MPDC) submitted its application for the project back in September, as its price tag rose to A$775m (£375m/€448m/$485m). The stadium is intended to house an Australian Football League (AFL) franchise in Hobart and would also host cricket and other events.
The submission marked the start of the assessment through the Project of State Significance process. The Tasmanian Planning Commission has been assessing the proposal against the Integrated Assessment Guidelines that it published last year, and its findings have now been revealed.
The release of the panel’s report today (Monday) comes after an independent report from economist Nicholas Gruen warned that the project could end up costing more than A$1bn.
The Tasmanian government has previously stated its contribution would remain capped at A$375m, with the federal government committing A$240m and the AFL adding a further A$15m. Any extra funding required would have to come from the private sector.
The TPC panel has found that the benefit-cost ratio of the project would be 0.53, meaning the costs would be almost double the projected benefits. This is below the 0.69 estimated by the government, but higher than the 0.44 figure from Gruen’s report.
The panel has also estimated that the initial cost of the project would be A$861m and could potentially rise to almost A$1.2bn – significantly more than the A$775m predicted by the government.
In terms of design, the panel considered that the size and scale of the stadium would have a “significant impact” on the visual experience and spatial identity of Sullivans Cove, and that the size of the venue’s roof would intrude on the identity of the city.
Following the release of the report, Tasmanian government minister Eric Abetz told Australian broadcaster ABC: “The report does appear to underplay the immense benefits of the stadium and the precinct it will unlock, including the key outcome of securing our own AFL/AFLW team.
“The report has also raised broad issues and taken a wide scope of the project, and we are concerned about the potential of any delays to an already tight timeline.”
The panel is inviting public comments on its report until May 8. Following public hearings, a final integrated assessment report and recommendation report is due by September 17.
