$12 million loan

By Casey Neill
KNOX Council will borrow $12 million to build a regional basketball stadium, despite rate hike concerns and claims of missing cash.
Baird Ward councillor Peter Cole said the Eastern Recreation Precinct was a fantastic project that would benefit thousands.
But he slammed council plans to burden Knox ratepayers with construction costs through a two per cent rate rise.
“They should not have to fund $12 million for a precinct that will be used by people from all over Victoria,” he said. “This is a basketball levy.”
Cr Cole also questioned the whereabouts of more than $150,000 contributed to a basketball development fund during the 1990s. He believes the council contributed to the stash.
CEO Graeme Emonson said he would have to ‘research’ before commenting on the fund.
Councillors last Tuesday (19 May) voted to include the stadium cash allocations in its draft budget, opening the move up for public comment.
Cr Cole encouraged people to have their say.
The State and Federal Governments have each contributed $7 million to the stadium’s $27.65 million first stage.
But Cr Cole said neighbouring councils and the State Government should chip in more.
Cr Cole said he hoped Knox Basketball Incorporated would contribute $1 million to the project to match Soccer Victoria’s commitment.
KBI will offer $500,000 towards fitting out its precinct offices. “Basketball needs to show a bigger commitment,” he said.
Knox Basketball CEO Simon Brookhouse said the organisation could wind up contributing more cash to the project. “How much I couldn’t tell you,” he said.
Mr Brookhouse said the association’s problem was pumping money into a facility owned by someone else.
“You get to a point where equity becomes an issue on land that’s not yours,” he said.
He said KBI had decided on its contribution following negotiations with the council and project working party.
He said it would also contribute to the facility through ongoing rent.
Mayor David Cooper said the stadium was an opportunity that could not be missed. “This is two and a half years’ work. It’s not just something that’s cropped up,” he said.
Cr Cooper said the council would continue to seek external funding, including philanthropic contributions or sponsorship.
Cr Darren Pearce supported the centre, despite an election campaign based on stopping unnecessary rate rises.
He said the facility would be a valuable community asset ‘purely from cold hard finance’. He said it would also attract people to the city to spend money.
“There is a calculated risk in this investment,” he said. “But that’s what moves us forward as a society.”
Cr Adam Gill said the loan was a ‘huge financial commitment’, but said there was potential to save money on the project in the current economic climate.
Cr Gill said the facility offered health benefits in a time when obesity and type two diabetes were on the rise.
He said young people who participated in team or club sports were also less likely to be involved in crime. “I don’t think you can put a financial figure on that,” he said.
Cr Mortimore said the need for extra courts was out there and would particularly benefit young people.
“I see this as an investment in the social well-being of our community,” he said. “We invest in building the character of our youth.”
Stage one will include six new courts plus a 3500-seat show court and create more than 350 jobs during construction.