Adelaide Aquatic Centre Redevelopment: Construction Licence and Lease Agreement (Denise Norton Park / Pardipardinyilla (Park 2))

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Project summary

To facilitate the State Government’s Adelaide Aquatic Centre Redevelopment project (Project), the Department for Infrastructure and Transport (DIT) requires:

  • a construction licence (draft Licence), and
  • a long-term lease agreement (draft Lease Agreement).

The City of Adelaide undertook community consultation for a period of 21 days to provide an opportunity to submit comments in respect of these agreements with Council as part of its decision making in August 2023.

This consultation was to seek feedback on the draft Licence and draft Lease Agreement with the City of Adelaide for the new Adelaide Aquatic Centre, which will be owned and operated by the State Government.

As the State Government has already undertaken consultation on the project, any comments that relate specifically to the redevelopment of the new facility should be directed to the State Government’s engagement team. For more information, please visit DIT’s project website:

Adelaide Aquatic Centre - Department for Infrastructure and Transport

If you have any feedback about the project, please contact DIT directly:


Update

At its meeting of 10 October 2023 (Item 13 - Recommendation 1 - Item 3.1 - Adelaide Aquatic Centre Redevelopment - Consultation Results), Council resolved:

THAT COUNCIL

  1. Notes the assessment of the community consultation findings.
  2. Notes that a further report detailing the essential terms and the negotiated draft Lease Agreement will be presented to Council in November 2023.

Please note that it is proposed to take the negotiated draft 42-year lease agreement back to Council in the first half of 2024 instead of November 2023.

Click here to read the minutes of the meeting.

Project summary

To facilitate the State Government’s Adelaide Aquatic Centre Redevelopment project (Project), the Department for Infrastructure and Transport (DIT) requires:

  • a construction licence (draft Licence), and
  • a long-term lease agreement (draft Lease Agreement).

The City of Adelaide undertook community consultation for a period of 21 days to provide an opportunity to submit comments in respect of these agreements with Council as part of its decision making in August 2023.

This consultation was to seek feedback on the draft Licence and draft Lease Agreement with the City of Adelaide for the new Adelaide Aquatic Centre, which will be owned and operated by the State Government.

As the State Government has already undertaken consultation on the project, any comments that relate specifically to the redevelopment of the new facility should be directed to the State Government’s engagement team. For more information, please visit DIT’s project website:

Adelaide Aquatic Centre - Department for Infrastructure and Transport

If you have any feedback about the project, please contact DIT directly:


Update

At its meeting of 10 October 2023 (Item 13 - Recommendation 1 - Item 3.1 - Adelaide Aquatic Centre Redevelopment - Consultation Results), Council resolved:

THAT COUNCIL

  1. Notes the assessment of the community consultation findings.
  2. Notes that a further report detailing the essential terms and the negotiated draft Lease Agreement will be presented to Council in November 2023.

Please note that it is proposed to take the negotiated draft 42-year lease agreement back to Council in the first half of 2024 instead of November 2023.

Click here to read the minutes of the meeting.

Consultation has concluded
  • Background

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    As part of the State Government’s election promise, funding has been committed to redevelop the existing Adelaide Aquatic Centre in the Adelaide Park Lands located at Denise Norton Park / Pardipardinyilla (Park 2).

    On 10 June 2023, the State Government announced that it had committed $135 million towards delivering a health and aquatic wellness centre in Park 2.

    At its meeting of 27 June 2023, following State Government’s engagement with local residents, Council received an update on the project including revised project timeline, confirmation of the final location of the redeveloped centre and an overview of the proposed Project Agreement between the Minister for Infrastructure and Transport (DIT) and the Corporation of the City of Adelaide.

    To facilitate the delivery of the project the following are required:

    • a construction licence (draft Licence); and
    • the grant of a long-term lease (to commence after construction is complete) that does not exceed 42 years (draft Lease Agreement).

    At its meeting on 11 July 2023, Council resolved to undertake consultation on the:

    • draft Licence, and
    • the essential terms of a proposed draft Lease Agreement.


    Legislation for the Granting of Lease and Licences in the Park Lands

    Section 202 of the Local Government Act 2005 (LG Act) and section 21 of the Adelaide Park Lands Act 2005 (APL Act) establish provisions under which the City of Adelaide (CoA) may grant a lease or licence over community land in the Park Lands.


    Strategies and Policies that Govern the Adelaide Park Lands

    Adelaide Park Lands Management Strategy 2015-2025

    Under the Adelaide Park Lands Act 2005, the CoA must adopt a management strategy (strategy) as prepared by Kadaltilla/Adelaide Park Lands Authority. The strategy for the North Park Lands Precinct speaks to the enhancement of the Adelaide Aquatic Centre to meet community expectations and generate a greater focus on servicing the play space and picnicking areas through increased offerings and better access to the existing commercial operations.

    Community Land Management Plan

    Under the Local Government Act 1999 the CoA must adopt a Community Land Management Plan (CLMP) for those areas of the Park Lands under its care and control.

    The current CLMP, comprising of separate ‘chapters’, has been reviewed and the management information for 30 parks and six squares has been brought together into a single document covering all the Adelaide Park Lands.

    The Park 2 CLMP, can be viewed on page 21 and is referenced as Chapter 2.

    Consultation on the draft consolidated CLMPs can be viewed by visiting the Your Say Adelaide website.


    Essential Terms – Proposed Draft Lease Agreement

    As this area will remain under the Council’s care and control, following completion of construction, a form of lease will need to be granted, not exceeding 42-years. The arrangement will operate as a ground lease whereby the lessee will be responsible the operation of the new Adelaide Aquatic Centre, including but not limited to:

    • all repair, maintenance and renewal obligations of all new and existing assets (built and landscaped),
    • occupation and use of all areas at the lessee’s risk (including being responsible for maintaining any insurances), and
    • payment of all occupancy costs including utilities and services.

    The Minister has indicated that total leased area would be approximately 29,305sqm (see Image 1), which includes the building footprint, car park and external areas. Overall, it is 1,000 sqm smaller than the total footprint of the existing centre.

    The proposed draft Lease Agreement also seeks a nominal rent recognising the significant $135.0M capital investment and that the State Government will take on all operating and maintenance responsibilities for the new venue and site.

    Image 1 – draft Lease Agreement Plan – 29,305 sqm


    Draft Construction Licence

    To facilitate the construction of the new Adelaide Aquatic Centre, a construction licence will be required so that a works compound (compound) may be established to keep the area safe during the construction phase. The compound will typically be used for site buildings (such as amenities / site offices), storage of plant, machinery and materials and temporary stockpiling of soil during construction.

    It is proposed that the draft Licence commence in October 2023 and finish in December 2025.

    The proposal received from the Minister indicates that the compound at its maximum will be 35,000sqm (3.5ha). As the draft Licence is part of and required for project delivery, we are also consulting on the draft Licence to complete the community consultation engagement, noting that:

    Stage 1 – September 2023 – 31 July 2024 (see Image 2).

    • Size – approximately 25,000sqm (2.5ha),
    • Site establishment and enabling works, and
    • Construction of main building and associated services.

    Stage 2 - 1 August 2024 – December 2025 (see Image 3).

    • Size – approximately 35,000sqm (3.5ha),
    • Demolition of existing centre and construction of Return to Park Lands Zone,
    • Construction of car park,
    • Return the southern side of the new centre back to Park Lands as agreed as part of the Return to Park Lands Zone (flat grass area with landscaping and trees planting as agreed with City of Adelaide), and
    • Completion of main building, northern landscape area and car park.

    Image 2 – Temporary Works Compound (Stage 1 – approx.25,000 sqm)

    Image 3 – Temporary Works Compound (Stage 2 – approx. 35,000 sqm)