Project Phoenix Update – November 2024

This is an update for Project Phoenix and highlights the delivery of important milestones, activities since January 2024

This project would not be possible without the ongoing support and financial contributions of Sutherland Shire Council, NSW Government via NSW Office of Sport Surf Club Facilities Program (SCFP) and Australian Government via the Department of Infrastructure, Transport, Cities and Regional Development Communities Development Grants (CDG) program and the financial support of our sponsors and the personal time and effort of our members.  We acknowledge this support as a critical factor to the success of the project and on behalf of the members we extend our appreciation and gratitude for this continued support.

It is important to inform our members, that we had four building workstreams in progress at our surf club building site and these are under review and looking to combine these streams into a new works package for a new principal contractor to be nominated and selected by Sutherland Shire Council.

Project Phoenix: Main project covering new building and existing surf club renovation works. Sutherland Shire Council maintenance works: Construction of new facilities and heritage surf club building maintenance works and new DA for demolition works and reconstruction of heritage building eastern balcony, external building fins and eastern façade works. Project Peryman: Upgrade and refurbishment of the existing Peryman pool. Feros Hotel Group: Incorporating changes in design and layout of the commercial spaces as per recent approved DA and S.455 modifications for service preliminaries and base build works.

January to August 2024

Lahey Constructions Pty Ltd started to wind down operations in Q1 2024 and had ceased work on selected projects in January 2024 including North Cronulla SLSC building project and ceased trading in June 2024.

Lahey directors resolve to appoint administrators on 1^st July 2024, first administrators meeting held on 11^th July 2024 and second meeting held on 5^th August 2024 and Deed of Company Arrangement (DCOA) was approved by creditors.

Against this unfortunate set of circumstances and background, NCSLSC served Notice to Take Work out of Lahey Constructions hands in March 2024. This would allow NCSLSC to review status of project at commercial, operational and construction level and move forward with activities required to recommence the building project. Work started on pre tender phase with an EOI issued to gauge interest form suitable qualified construction companies and returned with strong interest from the invited construction companies.

Cost to Complete reports were supplied by Mitchell Brandtman Quantity Surveyors for Main Contract Works, Council Heritage Building Maintenance Works, Project Peryman – Pool refurbishment and Council had already requested an additional cost report for the demolition and reconstruction of the eastern balcony and associated heritage fabric repairs and foundation work.

NCSLSC continued with the preparation of new recommencement tender package with engagement of various consultants, architects and engineers to create a new set of documents required to issue a tender package for the recommencement and completion of the building works.

In parallel to the above process, NCSLSC was in discussions and meetings with key stakeholders including Sutherland Shire Council executive, mayor and senior directors, NAB, FHG, our lawyers and our members.  These included responses to numerous Council letters and information requests, meetings with Council CEO, acting CEO, Mayor and Directors over several weeks to confirm the framework and next steps that would form the foundation of a Council Report on the North Cronulla Surf Life Saving Club Redevelopment Project.

The outcome of these discussions, meetings and NCSLSC responses was a decision by Council to table a report called Council Report COR030-24 North Cronulla Surf Life Saving Redevelopment Project for the Council meeting of 15^th July 2024. The 20 recommendations of the report were resolved unanimously at the meeting. In essence, Sutherland Shire Council will be taking over, funding and managing the building project, issue a EOI and tender for a new builder, select the Principal Contractor and or sub-contractors and manage that process to the completion of the Main Contract Works, Council Heritage Building Works, Project Peryman building works and demolition and reconstruction of the eastern balcony and associated heritage fabric repairs and foundation work.

Copy of Council Report COR030-24 North Cronulla Surf Life Saving Redevelopment Project minutes.

A Special General Meeting (SGM) of North Cronulla SLSC members was held on 10^th August 2024. The club members in attendance at the SGM, approved the three (3) Notice of Motions to acknowledge and receipt of Council Report CRO030-24 recommendations, endorsement and approval to granted to enter into appropriate binding legal financial arrangements with the Council as per Council Report COR030-24 Recommendations and Endorsement and Approval to be granted to enter into formal agreement as required with Council Report COR030-24 recommendations.

September to November 2024:

Council issued an Expression of Interest (EOI) Construction and Remediation Works North Cronulla Surf Life Saving Club on Tuesday 24^th September and with a closing date of 22^nd October 2024.

Extract from the Council website on EOI details:

Council is seeking an experienced and competent Principal Contractor, that can complete this project to a high standard and quality of work. It is important that the scope & extent of works is clearly understood by any potential Principal Contractor, and that the project fits within their capacity & abilities. This EOI will serve as the initial evaluation of suitable contractors, to be short-listed for a request for tender (RFT).

The North Cronulla Surf Life Saving Club facility is a Council asset that serves as an important hub for local volunteers who deliver key community services and foster community well-being. The Club undertook a renewal and upgrade redevelopment project, to deliver a community facility that responds to the changing needs of our local community. The improvements include accessibility, improved community gathering spaces and health and well-being facilities.

Following a halt to construction in early 2024, Sutherland Shire Council has resolved to take-over the redevelopment and complete the project. As such, this EOI has been developed in search of a suitable Principal Contractor to deliver and complete the current works, in alignment with the objectives & outcomes of Council:

• Restoration of an important council & community asset
• Provision of new community amenities & facilities at North Cronulla
• Completion of idle project that is highly visible to the community
• Proactive support of local community organisation
• Act reasonably and in the best interest of the project & community
• Collaborative project delivery, focused on operational access for stakeholders

Submissions Received from:

• Arenco (NSW) Pty Limited, Cke Stainless Pty Ltd, Ford Civil Contracting Pty Ltd, Grindley Interiors Pty Limited, Hicon Building Pty Ltd, Jdv Management Pty Limited, Mccann Construction and Property Pty Ltd, Momentum Built P/L, Rahnch Constructions Pty Ltd, Raw Constructions NSW Pty Limited, Saha Projects Pty Ltd, Schiavello construction (NSW) Pty Ltd, Tj Traffic Control Pty Ltd and Xenia Constructions (NSW) Pty Ltd

Sutherland Shire Council has an updated message on their website at the following link:

North Cronulla Surf Life Saving Club Redevelopment

NCSLSC is currently working our lawyers and with Council to review the draft agreements required to facilitate the recommendations of Council Report COR030-24 North Cronulla Surf Life Saving Redevelopment Project. These agreements include a new Agreement for Lease (AFL) between Council, NCSLSC and Feros, associated Annexure A sub lease between Council, NCSLSC and Feros and a new 20-year property lease between Council and NCSLSC. These will take time to be reviewed and reach agreement on the terms and conditions of the proposed agreements.

Members, please be advised we are working through the complicated process with purpose, at pace and with diligence to ensure the best outcome for our members and the community.

The building progress can be viewed at our time lapse camera via this link.

We look forward to the Council announcement of the appointment of a new Principal Contractor and recommencement of building works in early 2025.

North Cronulla SLSC Board of Directors