The $45m Sydney surf club plan that has ‘scared the bejeebers’ out of ratepayers

A Sydney council will go back to the drawing board on its troubled bid to overhaul an ageing surf club, after residents baulked at a suggestion the complex should be rebuilt for up to $45 million.

Sutherland Shire councillors this week voted unanimously to rethink a long-running project to redevelop the North Cronulla Surf Life Saving Club, leaving open the possibility the 1950s clubhouse and a partially completed extension could be bulldozed to make way for an entirely new facility.

The council last year voted on an $8 million plan to take over the stalled redevelopment, which began in 2022, after the club ran into financial trouble and the builder walked away in early 2024.

But at a council meeting on Monday night, critics expressed alarm at the estimated multimillion-dollar price tag to knock down and rebuild the beachfront club.

A report to councillors recommended the council demolish the new structure and the outdoor pool, and raze a “substantial” portion of the old club, for an estimated $30 to $45 million.

Former independent councillor Leanne Farmer told the meeting she didn’t know “where that price came from”, but that it had “scared the bejeebers out of everyone”.

“I feel sorry for the club. They just want to get their club built. It’s a terrible situation,” she said.

The report said the foundations of the partly built extension might not have the capacity to withstand forces from “wave action” and that aspects of the building’s construction, which included concrete cracks and spalling, did “not meet expected standards”.

It also said the old clubhouse was in poor condition, despite recent remediation works, had building defects, and was not stable enough to withstand “extreme weather or seismic events”.

The report said there were “significant risks associated with the three structures in their current state” but, given the “substantial financial implications” of the project, the council might decide not to proceed with the redevelopment, or to opt for a reduced scope of redevelopment.

Mayor Jack Boyd noted the “enormously important” project would be “closely monitored and judged by the community”, and said the council must “ensure this vital community asset is reinstated”.

“We understand concerns around public expenditure and will take this into account when making any final decisions about a construction pathway,” Boyd told the meeting.

North Cronulla Surf Lifesaving Club president Geoff Budd, who supported the recommendations in the staff report, said the club had been “stranded” by the developer and would continue to work with the council.

“Before we enter into any formal agreement as a club, we have a constitution and will need to present to our members the business case created by council,” he said.

Farmer told the meeting the report was “flawed” and “misleading” because it “shifts blame and undermines the surf club which has served this community for 100 years”.

“It overstates costs, misrepresents responsibility, and tries to frighten the very volunteers who do council’s job on the sand every weekend. The report tries to make it sound like the surf club alone is responsible [for the building’s poor condition], and that is false.”

Farmer cited other Sydney surf club revamps that had cost roughly $10 to $16 million, and said the estimated cost was “so overinflated” and it “must be brought back into line with reality”.

Club member Luke Payne said the redevelopment was intended to “secure the club’s future, deliver improved facilities and to make the club financially viable so it could stand on its own and not be a burden to ratepayers”. Instead, the builder’s exit had left the club in “an unprecedented situation”.

“Why was there no financial contribution from the council? What tenant rebuilds a building on behalf of its owner? Club members shouldn’t have to be paying this for generations to come.”

Payne, who owns a building company, said the estimated cost “doesn’t stack up”.

The council said it had supported the redevelopment by guaranteeing loans of more than $5 million, and had contributed $2.6 million, as well as state and federal grants. It said it had “long-supported a model that empowers” the four surf clubs at Bate Bay - Cronulla, North Cronulla, Wanda and Elouera - to lead the redevelopment of their facilities.

Councillors voted to prepare planning documents and programming schedules in line with the staff recommendations, while exploring alternative options for demolishing all the existing structures and constructing a new facility to accommodate the club, public amenities and commercial space.

Boyd said: “We must prioritise public safety and deliver a building that meets today’s standards in the most financially responsible way possible, and I believe this decision will ensure the delivery of a safe and modern community facility that offers long-term value without placing extra costs on ratepayers.”

Also at issue was a council plan to reclassify part of the site as “operational”, rather than “community” land, which would effectively mean it could be sold or developed with fewer restrictions. That decision was deferred until the council decided on an option for the rebuild.

The surf club redevelopment last year attracted attention over former Sutherland Shire mayor and current councillor Carmelo Pesce’s links to prominent hotelier Chris Feros, whose company Feros Group was to operate a bar, restaurant and kiosk in the new additions to the redeveloped clubhouse.

The Herald revealed Pesce did not disclose an affiliation with Feros when he voted on the council plan to take over the surf club redevelopment, later insisting he was only an acquaintance, despite Feros previously declaring he was a friend of the mayor for a separate planning matter in 2016.

The Herald did not suggest Pesce did have a conflict of interest in that surf club vote.

Citing “public perception caused by a story in the [Herald] last year”, Pesce declared a significant non-pecuniary interest when the project came before the council on Monday. He left the chambers and did not vote.

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