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A Tasmanian Planning Commission panel has released a highly critical draft report on the planned Hobart Stadium suggesting that cost for the venue will rise to $992.5 million - a 39% rise on its initial $715 million projected cost - while also criticising the venue on planning and social grounds.

In its draft report - released this afternoon - the Tasmanian Planning Commission (TPC) panel described the new 23,000-seat stadium as "overbearing", "disproportionate" and against local planning schemes.

The draft assessment was written by an independent panel led by former litigation lawyer Paul Turner, SC, who will ultimately help the Tasmanian Government determine whether the venue should be approved.

It advises that the initial estimates provided by the group building the precinct, the Macquarie Point Development Corporation (MPDC), did not account for the money needed to ensure the precinct could be used safely and effectively.

It advises “as a result, the Panel finds that the cost of developing the stadium and the supporting infrastructure and services … are understated.

“The Panel also concludes that the estimated benefits … are overvalued.”

Construction of the stadium is a prerequisite for the arrival of the AFL’s Tasmania Devils, which was granted a provisional licence as the competition’s 19th team last year.

The team is forecast to join the AFL in 2028, contingent on the stadium at Hobart’s Macquarie Point being partially built. At a meeting of the AFL club presidents in early March, the League agreed to allow a second vote on the licence if the team’s entry is delayed by not having a completed stadium.

The MPDC submitted its application for the project back in September last year, as its price tag rose to $775 million, marking the start of the assessment through the Project of State Significance process.

The TPC has been assessing the proposal against the Integrated Assessment Guidelines that it published last year, and its findings have now been revealed.

The release of the panel’s report today comes after an independent report from economist Nicholas Gruen warned last year that the project could end up costing more than $1 billion.

The TPC panel has found that the benefit-cost ratio of the project would be 0.53, meaning the costs would be almost double the projected benefits. This is below the 0.69 estimated by the Tasmanian Government, but higher than the 0.44 figure from Gruen’s report.

In terms of design, the panel considered that the size and scale of the stadium would have a “significant impact” on the visual experience and spatial identity of Hobart’s Sullivans Cove, and that the size of the venue’s roof would intrude on the identity of the city.

The draft report also raises concerns about the level of borrowing required, noting "under its central scenario, construction of the Project would require the State to borrow - or otherwise finance at the same or greater cost - approximately $992 million.

"At the end of 10 years of operation the additional debt directly associated with the project's construction and operation would be approximately $1.86 billion."

"The additional debt the state would take on to build the project and to fund its operating losses may trigger a credit rating downgrade."

The Tasmanian Government has consistently said it will cap its contribution to new venue at $375 million.

Images: Current renders of the proposed Hobart Stadium. Credit: Macquarie Point Development Corporation.

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