The Rex Project, a major council initiative, promises to deliver a modern administration centre, library and facilities, including a community auditorium and cinema. 

The project is the first stage of a broader program which includes upgrades to Daylesford’s swimming pool and Town Hall.

Interim Chief Executive Officer of Hepburn Shire Council, Bruce Lucas, said a review of the project’s status in early June highlighted unanticipated challenges with the construction of the project, which has resulted in  budgetary implications. 

“The costs incurred will result in the budget being exceeded. This is due to unexpected works required and an underestimation of the actual costs at project inception,” he said.

The Rex project was initially costed at below the $1 million threshold, but is now anticipated to exceed this amount.

Mr Lucas said the new cost was not expected to impact the 2018-29 council budget but he would not comment on how much more the project would cost at this stage.

“This additional expenditure means that a planning permit is now necessary in order for construction to be completed,” he said. 

“What that means is we have taken steps to suspend work on the project whilst we now go through the application process for a planning permit.”

He said the delay was a “pretty significant decision with a pretty significant impact” and would not only impact the transfer of council services across to the Rex, but also other tenants including the Daylesford Community Cinema, which anticipated moving in to the space later this year. 

Mr Lucas said council would explore options to support the community cinema through the delay, but would not say whether that meant funding.

The original date of completion for the project was intended to be this October.

Mr Lucas said the revised opening date of the hub is “unknown… and he would not even try to prempt” a new date at this stage.

The date will depend on the planning permit process and whether adjacent property owners object to the plans, meaning they would go to VCAT.

Mayor John Cottrell called the delay a “hiccup” in the process.