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Productivity – Reports

Ordinary Meeting - 12 February 2014

Previous Council Support: Significant resources have been allocated to this property over the 14 year period that the City has owned it. In total $1,054,363 has been spent on essential repairs and maintenance. More recently $25,000 was spent on preparing the architectural drawings that have enabled a Heritage Victoria application to be lodged. Staff time is not included in these costs. External Funding Sources: A grant for $336,000 was received from the State government to cover the purchase price of the property. A further grant of $85,000 was received from Heritage Victoria in 2004 that contributed to the repair of the glass lantern roof. The façade restoration was funded by the City with the major adjoining Beehive property owners contributing $60,000 towards the cost via a delayed contribution agreement. Current Estimate or Tender Price: NA Any known or anticipated variance to budget: NA Projected costs for future financial years: It is likely that Heritage Victoria will require a detailed archival quality photographic record to be produced by the City. This should occur prior to the settlement of the sale and a budget allocation of approximately $10,000 will be required in the 2014/15 financial year. Any ongoing recurrent expenditure required: None, assuming the property is sold. If it is not sold then essential repairs and maintenance will be required. This may be offset by any rent that is received. Conclusion The former BME is a fantastic heritage building that helps tell the story of Bendigo’s development through its impressive architectural expression. Once restored it has the potential to become one of Bendigo’s most visited heritage buildings and to help drive private sector investment into the heart of the city centre. The City has rescued this building from sliding into an unrepairable state and has invested a considerable amount of human and financial resources to get it to the stage that it is now a viable option for it to be returned to private ownership. The final stage in the City’s stewardship role is to sell the building to an owner who is capable of delivering the project to the standard that this building deserves. Given the amount of private sector interest that has recently been shown, it is likely that this will now become a reality. Attachments Nil

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20140212 agenda