FAQs

A Business Plan describes a business proposal or major land transaction which in this case is the proposed expansion of the Cockburn ARC.  In accordance with the Local Government Act 1995, the City is advertising the Business Plan for public comment to:

• Provide an opportunity for the public to comment on the Business Plan and the proposed acquisition of this property; and 
• Satisfy the requirements of Section 3.59 of the Local Government Act 1995. 

In accordance with Section 3.59 before a local government enters into a major land transaction the local government is required to prepare a Business Plan. The Business Plan is to include an overall assessment of the major land transaction and is to include details of: 

(a) Its expected effect on the provision of facilities and services by the local government; 

(b) Its expected effect on other persons providing facilities and services in the district; 

(c) Its expected financial effect on the local government; 

(d) Its expected effect on matters referred to in the local government’s current plan prepared under Section 5.56;

(e) The ability of the local government to manage the undertaking or the performance of the transaction; and 

(f) Any other matter prescribed for the purposes of this subsection. 

The City’s components

695m2 of new and approximately 1999m2 of reconfigured space. This includes: 

• Increasing the gym floor space to 1500m2 
• Increasing the Body and Mind Studio to 250m2 
• Relocating and modifying the main group fitness studio 
• Relocating and modifying the indoor cycle studio 
• Converting existing administration spaces to increase gym floor space 
• Moving the administration spaces to other areas within the facility. 

FFC Components

790m2 internal + 465m2 outdoor terrace and seating. This includes:

• Spectator seating area and public amenity
• Gender neutral change-rooms and amenities
• DDA toilet
• Lift 
• Multipurpose room

The City will pay for the costs of the City’s areas from its own funds set aside for that purpose. The City’s areas will cost approximately $10.5m. 

The estimated costs for the FFC portion of the works is $7m. The funding up to $7m will be from the following sources:

• WAFC/AFL - $650,000
• State Government - $2.5m
• FFC cash contribution - $3.85m

FFC have requested access to a capital contribution of up to $1m through the City, without penalties for early payout and/or capital contributions.

It is proposed the capital contribution will be funded by the City and would be fixed to the remaining term of the initial 21-year period of the current lease (16 years), at the current West Australian Treasury Corporation (WATC) interest rate at the time of contract execution. 

FFC would make quarterly payments in the form of a rent to the City to repay the contribution plus the interest. Council would be required to endorse the capital contribution and repayment plan prior to approval which would be subject to a future report to Council.  As part of the same report, Council may consider a one off grant or contribution towards cost increases (if any) of the publicly accessible community elements of the FFC works.