Construction of a long-awaited resort at the Kalgoorlie Golf Course has finally begun, five years after it was announced, as developers overcome cost blowouts and environmental hurdles building on top of an old rubbish tip.
The 122-room resort to be operated by American hotel chain DoubleTree by Hilton was announced by the City of Kalgoorlie-Boulder in September 2017.
It was originally hoped the resort could be completed at the council-owned golf course by the end of 2018.
But it was repeatedly delayed as work testing for underground gases was carried out over the old landfill site.
Construction finally began this week with the installation of the first of about 500 pilings.
Evan Campbell, from developer Collab Capital (formerly Pacifica Developments), said the pilings would be drilled about 12 metres into the old landfill site to safely suspend the structure.
He said the work would add about two months to the 18-month construction phase.
"When you're piling through old tips you never know what you're going to find, it could take a little bit longer, but it should be fairly straightforward," he said.
"We're not too concerned about that, so six to eight weeks and then we'll press on with the other works for the site."
Project costs have soared
The project's original budget in 2017 was around $22 million, which blew out to $31 million in 2020.
Mr Campbell said it was now expected to cost in the vicinity of $35-40 million, with an official opening targeted for mid-2024.
About 40 caravans are being relocated from Perth to Kalgoorlie-Boulder to house contractors during construction as WA's latest mining boom has resulted in an ongoing accommodation crisis.
Despite soaring costs across the construction sector, Mr Campbell said the finished product would be well worth it.
"The cost side of it is obviously challenging," he said.
"We've all heard what's happened with COVID, a bit of a perfect storm out there from a materials point a view, from a labour point of view.
"The project is fully funded … but the reality is it's going to cost a lot more than we first thought.
"But having said that, on the revenue side of the hotel, we believe it will trade better than on what our feasibilities were based on [because] this is going to be the first major food and beverage development in Kalgoorlie for 20 years."
Long wait for golfers
The Kalgoorlie Golf Course is ranked 62nd on Australian Golf Digest's list of the country's top 100 golf courses.
But the Goldfields Golf Club has been waiting for a permanent clubhouse since the $18.5 million course opened in 2010.
Its 488 members, accurate as of June 30, have been housed in a modular building for the past decade.
The City of Kalgoorlie-Boulder has been contractually obliged to build it after the land housing three old dirt courses was handed over as part of the 2004 deal for a grass course.
The long-running saga took another turn in December last year, when City councillors voted 11-1 to pay for additional site preparation works which will see the council's financial contribution towards the project increase from $7 million to around $12.5 million.
Mick McKay was the only councillor opposed.
Mayor welcomes construction work
Kalgoorlie-Boulder Mayor John Bowler welcomed the start of construction, saying the council has been working towards the resort for more than a decade.
"It's been a frustrating and slow time for us, but better late than never," he said.
"Out of this we'll not only get a new clubhouse, but a new pro shop [and] a four-and-a-half-star hotel."
While the City of Kalgoorlie-Boulder uses recycled water to maintain the fairways, the course has always run at a loss.
Council documents show the Kalgoorlie Golf Course ran at a $2.27 million loss last financial year, which was up from a $1.89 million loss in 2020-21.
The biggest expense in the latest reporting period was $1.03 million towards the resort and clubhouse construction.
Mr Bowler said he hoped the resort will improve the economics of running the course.
"You'd like to think so," he said.
"Once you get that lovely four-and-a-half star hotel overlooking the 18th green, you're going to get more golfers come [and] they'll stay longer to spend a day at our unique course.
"It will be one of the best hotels in regional Western Australia and it's something all Goldfielders can be proud of."
The start of construction comes on the eve of the next month's 2022 WA PGA Championship, which has been held at the Kalgoorlie Golf Course for the past decade and will see 120 of Australia's best golfers tee off.
The 2021 event was delayed by COVID-19 and played in April this year after WA's border was reopened.
