A regional council deciding the future of its aquatic centre · Business Cases and Feasibility Studies
Choosing the $6.2m cheaper option, with the numbers to prove it
The pool was fifty years old and failing. Community groups wanted a new centre; the budget said refurbish. A state grant round closed in ten weeks and needed a business case in the funder's format.
The new centre only worked if visitation doubled. The refurbishment costs $6.2m less over thirty years and serves 90% of the same users.
Insight
Over thirty years, a staged refurbishment with a new heated program pool cost $6.2m less in net present value than a new centre, served 90% of the same users, and fitted the grant's co-contribution limits. The new-build option only worked if visitation doubled.
Advice
Proceed with the staged refurbishment, apply for the grant on that option, and put the new-build case on hold until visitation data justified it.
Opportunity
A $6.2m lower whole-of-life cost and a funding application that met the program's criteria on the first submission.
Results
The business case was lodged in the funder's template before the deadline, and council resolved to proceed with the refurbishment option.