New Museum of Southland Faces Potential $19.5 Million Budget Increase

• Southland’s new museum project may exceed its budget by up to $19.5 million.
• Councillors will discuss options, including continuing with the current design or scaling back.
• A public consultation could delay the museum’s opening by up to nine months.

The projected cost for Invercargill City Council’s new Museum of Southland could increase by as much as $19.5 million due to rising costs and funding difficulties. Councillors are set to discuss the project’s future on Tuesday, including the need for a public consultation, which could delay the opening by up to nine months.

In a report prepared for the councillors, it was noted that the redevelopment of the Southland Museum and Art Gallery has been a topic of community discussion for a decade. Since the old museum was closed for safety reasons in April 2018, the city has lacked a permanent museum facility.

The Museum Governance Group had previously proposed a budget of $57.1 million to strengthen the existing building. However, public feedback favoured constructing a new facility, leading to a revised budget of $65.5 million in July 2022.

At the upcoming meeting, three options will be presented to the councillors. The first option involves proceeding with the current design and increasing the budget by $19.5 million, bringing the total to $76.8 million. The second option suggests reducing the scope of the project, resulting in a total budget of $71.3 million, still an increase of up to $14 million. The third option is to pause the project, maintaining a budget of $63.9 million but potentially facing a shortfall of up to $6.6 million.

The report highlighted the challenge of securing the necessary external funding. “We are continuing to engage on third party funding opportunities; however, the ability to achieve the $6.6 million to support the capital build of the Museum of Southland will be a challenge,” it stated.

To proceed with any of these options, public consultation is recommended. The council’s project team also confirmed that despite efforts to keep costs within the budget, adjustments to the Museum Governance Group’s requirements may be necessary.

The report mentioned that all existing contracts for the build include termination clauses, allowing the council to halt work if needed. It also noted that after the 2022 local election, councillors emphasised the museum as a priority project. The project faces challenges such as cost inflation and post-COVID-19 impacts, including issues with resourcing, cost of living, and supply chain disruptions. The next steps involve preparing consultation documents and planning based on the councillors’ decisions.