Project split on council meeting agenda
The Denmark Shire council is set to split the $14 million Denmark East Development Precinct Project into two parts at its meeting tonight.
The State Government confirmed last week that the project, which involves the construction of a light industrial area, a new bridge and connector roads, could be separated.
Item 8.5.3 on the Shire’s agenda recommends that the council divide the project into two separate financial assistance agreements.
The split is expected to be made between from the new bridge (western precinct) and a light industrial area (eastern precinct).
Uncertainty has surrounded the western precinct of the project, with the council so far unable to choose a suitable crossing point.
In January a five-hour council meeting, attended by hundreds of residents, brought no decision, with concerns raised about the two main options.
The agenda item stipulates the project funding will be reallocated to prioritise the completion of the eastern precinct, with the remaining funds to be used as leverage to complete the western precinct.
The background information in the agenda indicates a financial review of the project has been completed. “The financial analysis undertaken has identified a number of additional costs that now questions the viability of the entire project,” the report stated.
“It would appear that the project is now well beyond the financial capacity of the Shire.
“To deliver the project the Shire would require significant financial assistance.”
The item recommends that work continue on the western precinct to determine a crossing point.
The council is also expected to adopt the Shire’s budget for the new financial year.
The council meeting begins at 4pm at the Council Chambers.
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