History

October 2013

A SAM Foundation was established to raise money for a new, expanded SAM, and for the growth of the art collection.

February 2014

In response to a generous offer from Carrillo Gantner to donate $2m of Aboriginal art to the Shepparton Art Museum (should it be upgraded to accommodate it), Council committed funds towards a feasibility study for a new art museum.

July 2014

The Victorian Government announced additional funding for the feasibility study.

August 2014

The Copulos Family pledged to donate $1.5m over 10 years to the new SAM.

September 2014

Simon McArthur and Associates were chosen from a number of applicants to undertake the feasibility study.

September 2014

Simon McArthur and Associates began consulting with stakeholders.

October 2014

Simon McArthur and Associates completed consultation with 300 interested stakeholders, plus 300 people who had visited and stayed in regional Victoria and visited an art museum in the last 12 months.

January 2015

Simon McArthur and Associates completed the feasibility study / business case, which formed the basis of a report to Council.

March – April 2015

Council made the business case available for public comment, held a public information session, and conducted a poll both online and in hard copy at 26 locations around Greater Shepparton to gauge support for the business case.

May 2015

At the Council meeting on 19 May 2015, councillors approved the following recommendation 6 votes to 1:

1. Accept the findings of the Feasibility Study and Business Case for a New Art Museum in Shepparton and endorse the location at the site selected at the southern end of the Victoria Park Lake.
2. Note the new SAM project estimated capital value $34.5 million subject to documentation outlined in item 4.
3. Include the new SAM project into the Greater Shepparton City Council long term financial plan (LTFP) and strategic resource plan (SRP), noting the following recommended funding sources:
   1. $10m – Greater Shepparton City Council
   2. $10m – State Government
   3. $10m – Federal Government
   4. $4.5m – SAM Foundation (plus additional $8m for investment endowment to support future operational costs)
4. Prepare all documentation necessary to progress the new SAM project including (but not restricted to):
   1. Architectural design
   2. Construction plans
   3. Planning and building permits
   4. Victoria Park Lake master plan update
   5. Governance model and transition
   6. Project timelines and milestones

July 2016

In a two stage process to develop a design for the new museum, expressions of interest (EOI) were sought from suitably qualified and experienced architects. The EOI period opened on 29 July 2016 and closed on 31 August 2016. The EOIs were evaluated by an expert jury and shortlisted.

In stage two, the shortlisted architects were invited to develop concept designs for the new SAM on a site at Victoria Park Lake with a design competition endorsed by the Victorian Office Architects and the Australian Institute of Architects.

April 2017

In April 2017 Denton Corker Marshall were announced the successful winners of the design competition.

February 2018

At a Council meeting on 20 February 2018 an amended budget was endorsed by Council with a decision to use capital works funds rather than take out a loan for the building with a new estimate of $39.9m. This is an increase of $5.35m. Council’s contribution increase to $5.35m in upfront capital would be partially offset by an estimated $4.23m savings in loan interest expense.

The updated funding allocation was:

1. $15.35m – Greater Shepparton City Council
2. $10m – State Government
3. $10m – Federal Government
4. $4.5m – SAM Foundation (plus additional $8m for investment endowment to support future operational costs)

Two cost reviews during the detailed design phase revealed that to build to the current budget would result in the new SAM building having limited functionality and requiring further future investment to be operational. The project is consistent with the 2014 business case, competition guidelines and awarded design; there have been no changes to the business case concepts for the project.

February 2019

At a Special Council Meeting on 26 February 2019 Council endorsed Contract 1865 Principal Building Contractor Panel Recommendation and New SAM Budget Update.

During evaluation it was identified the tender bids were above the adopted build budget of $38.5M (including GST) and ranged from $47.3M to $51.7M (including GST).

With the bids being greater than the pre tendered budgeted amount, Council negotiated with the Federal and State Governments and the SAM Foundation to request an increase in Grant Agreements with Council. Negotiations with the Federal Government and SAM Foundation were successful allowing Stage 1. Stage 2 (landscaping and specialist equipment) will require an additional $2.5m (excluding GST), and Council will continue to negotiate with funding bodies to offset this capital requirement.  

The endorsed recommendation was carried 7 to 1:

1. Acknowledge that Council has secured additional funding from the Federal Government and SAM Foundation to offset the increase in the capital required for Stage 1 of the SAM Project.
2. Acknowledge and accept that Council will commence Stage 1 works with Stage 2 on hold until further funding is sourced from external funding bodies.
3. Endorse the revised Project Budget – Construction Phase of $47.4m (excluding GST) as detailed in the report to enable Stage 1 works to commence.
4. Accept the tender submitted by Kane Construction Pty Ltd for the lump sum Contract No. 1865 - Construction of the new Shepparton Art Museum with a value of $45,975,954.00 (including GST) with $2,750,000.00 (including GST) of the Contract sum conditional on funding gained for Stage 2.
5. Authorise the Chief Executive Officer to sign and seal the contract documents.
6. Authorise the Chief Executive Officer to sign off on monthly progress payments up to $3,300,000.00 (including GST) for Contract 1865.

The updated funding allocation is:

1. $15.35m – Greater Shepparton City Council
2. $10m – State Government
3. $15m – Federal Government
4. $7m – SAM Foundation (plus additional $8m for investment endowment to support future operational costs)