Parliamentary Committees

Public Works Committee: Tucker Street Apartment Project

Mr BROWN (Florey) (11:02): I move:

That the 95^th report of the committee, entitled Tucker Street Apartment Project, be noted.

In response to the housing crisis, the state government has made a $177.5 million election commitment to improve public housing through the Public Housing Improvement Program. As part of this investment, the government has committed to building an apartment building at Lot 2 Tucker Street, Adelaide.

The South Australian Housing Trust will head the project and proposes to build a 20½-metre high structure that contains 50 studio apartments, which aligns with both the plan for A Better Housing Future and the Public Housing Improvement Program. The building will provide onsite services, office spaces, meeting rooms and common areas, and the site's convenient CBD location will offer residents ready access to existing amenities and services.

Two concept options were considered to deliver the project. Option 1 identified a city location, which benefits from convenience and accessibility to amenities and existing services, the ability to incorporate support services, appropriate zoning provisions, alignment to customer demand and proximity to employment opportunities. Option 2 proposed delivery in the suburbs, which would provide greater opportunity for private outdoor space and the ability to deliver multiple dwelling typologies. It would, however, be limited by service accessibility, lack of public transport access, misalignment with customer demands and have a greater impact on the community. Option 1 of a city location was selected because it best reflected the project drivers.

Development application for the project was lodged in February this year and planning consent was granted in June. The agency has secured a licence agreement on the adjoining site to support construction, which will aid contractors and optimise construction time efficiency. Due to the site's previous commercial use, a preliminary site investigation was undertaken and found no Environment Protection Authority referral triggers.

The proposed built form is responsive to its surrounds and consistent in scale to neighbouring high-density development, and the ground-level interface is designed to be sympathetic to the nearby single-storey heritage buildings. The project requires the relocation of an electrical transformer and the work will be completed by SA Power Networks. SA Water has advised that a water supply upgrade is required on Tucker Street as well as the potential for a future supply upgrade on Hutt Street. Construction is expected to begin in early 2025, with completion anticipated for June 2026.

The project has been allocated $19.2 million. The estimated total cost of the project is $20.2 million, indicating a potential budget shortfall of $1 million. SA Housing Trust has stated they are confident this deficit can be funded from the redirection of funds within their approved budget. Budget provision of $3.1 million over the forward estimates post construction has been made for the provision of support services to the residents. Other associated costs with ongoing management and maintenance of the project will be drawn from existing budgets.

Given the urgency to ease the housing crisis, the project has explored all opportunities to accelerate the project schedule, including:

overlapping design and town planning approval processes;

adopting a design and procurement model to allow tender to occur on a staged design process that overlaps with construction activities;

performing critical lead-in works ahead of the building contract; and

designing the building to make use of streamlined construction technologies.

The project will be delivered following best practice principles for project procurement and management as advocated by the state government and construction industry authorities.

The project management process includes evaluation and review of solutions against the brief, preparation of a project program, establishment of a cost plan, appointment of a lead professional services contractor and cost manager, and development of formal communication channels between end users, stakeholders and the SA Housing Trust. Additionally, construction procurement will be undertaken via a competitive tender process in line with state government requirements.

A risk assessment has been undertaken in accordance with SA Housing Trust's risk management framework, and the project has been identified in the medium range of risk. Risks identified include:

the project representing a new and uncommon operational model by co-locating dwellings and services;

the scale of the project being significant for the SA Housing Trust; and

the project progressing with an accelerated schedule, which may be impacted by delays from activities outside the agency's control.

To overcome potential issues, an independent adviser has been engaged to oversee the building procurement and the project team of external consultants is highly experienced in the design and delivery of high-density apartment developments.

The project aims to deliver resilient public housing that is prepared for a changing environment, with housing that increases energy efficiency and reduces energy demands for customers. To reach these goals, the built form incorporates a range of design features, including:

natural ventilation and materials of thermal mass that support passive temperature control, supplemented by individual air conditioning units, allowing more responsive temperature control to each dwelling;

selective finishes that improve internal environments, with the choice of appliances, fixtures and utilities aiming to reduce operational costs and the use of water and electricity;

the decision to not use natural gas at all;

the management of waste streams to support recycling and organic waste; and

landscaping that will benefit biodiversity and the tree canopy.

The South Australian Heritage Places Database has identified several local heritage places adjacent to but not within the project area, and the proposed development is not anticipated to impact the heritage values of these places. Nearby Pirie Street and Hutt Street are part of the national heritage place The Adelaide Park Lands and City Layout, and the development is not anticipated to impact this place as the structure does not have a frontage to Hutt Street or Pirie Street. The Register of Aboriginal Sites and Objects has not identified any sites within 200 metres of the development.

The project will be overseen by a project steering committee which is responsible for strategic direction, reviewing progress, key decision-making and ensuring project alignment with the state government's election commitment. Public notification is not required for the project's development application, and consequently no public consultation has occurred for the project. However, SA Housing Trust representatives attended an information briefing session with local residents facilitated by the member for Adelaide. A media and communications team from SA Housing Trust will manage formal inquiries relating to the project as they arise.

The committee examined written and oral evidence in relation to the Tucker Street Apartment Project. The witness who appeared before the committee was Mr Tom Currie, Director, Major Projects and Housing Initiatives, South Australian Housing Trust. I thank the witness for his time.

Based upon evidence considered, and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public work.

Motion carried.