New SAM update – What’s Next?

Work is continuing on the new SAM project with the governance model, a Federal Government funding application and a design competition all underway.

Governance Model

A workshop with councillors, the Project Board and other key stakeholders was held to discuss all theo ptions for governance of the new SAM. As a result the Project Board has engaged Russell Kennedy lawyers to provide Governance direction for a Company Limited by Guarantee. This is the only effective way for Council to share the expanded operating risks of a new Art Museum, and to secure capital and operating funds required if the project is to be feasible. The Council cannot deliver the project on its own.

SAM will be governed by a skills based Board on which Council will have two nominated representatives. It recommends the Board comprise individuals with designated skills relevant to a significant cultural institution, able to assist the Governance Board in its objectives.

The new SAM is contingent upon this governance model, the project cannot otherwise be realised, as the private funds required would be unable to be raised under an alternative model. It is recommended the existing collection remain in the ownership of the Council as will the new building which will be leased to the Art Museum Board for a peppercorn rent. The Art Museum Board may also accept and own works of art, which will enable gifts to the Museum which would otherwise not occur, with private donors often unwilling to give art to a local government entity.

The draft constitution of this new Company Limited by Guarantee will be presented to Council in April.

 Funding Applications

Council was successful in obtaining $10m in funding from the Victorian State Government through the Regional Infrastructure Fund as announced on 3 March 2016 by Jaala Pulford, Minister for Regional Development. An application to the Federal Government’s National Stronger Regions Fund was submittedon 15 March 2016.

 Capital Contribution

 Greater Shepparton City Council   $10m (Council committed to this amount in May 2015)
 Victorian State Government    $10m (Committed March 2016)
 Federal Government       $10m (Application submitted 15 March 2016)
 SAM foundation      $4.5m (Confirmed)

  Operational Contribution / Trust Fund

 SAM Foundation  $8m 

The SAM Foundation will raise the $8m as an endowment to support operating costs. The total capital cost for a new SAM is $34.5m.

Council will then own an asset three times that value which will generate $58.1m in economic activity over the two year construction period, equating to the creation of 72 direct jobs and a total of 181 jobs including all direct, industrial and consumption effects, across the region.

The SAM Foundation have confirmed funds of $2m and are confident of securing the additional funds. The SAM Foundation ‘Giving Tree” has already secured around $25,000 from community donations and is still growing.

Architectural Design competition

The Project Board is currently working on a Procurement Plan for the architectural design of the new

Shepparton Art Museum. This is a two stage competition that will be conducted in accordance with the Australian Institute of Architects’ Competition Guidelines and endorsed by the Institute. The design competition will start with an Expression of Interest which will ask for a design approach and a vision for the new facility as well as a capability statement.

From the Expression of Interest, a shortlist of architectural firms will be asked to submit a concept design for consideration.

The management of the design competition and the full design phase will be overseen by a panel of experts including the formal position of a Competition Advisor.

Site Location at Victoria Park Lake

The new SAM will be built adjacent to Victoria Park Lake on land vacated by the Shell Service Station and the Lake Cafe whose leases expire in May 2017. An environmental audit has been conducted with EPA involvement and once the site is vacated remediation works will begin.

The plan to create an elevated building, with a reduced footprint at the site of the existing Shell Service Station on Victoria Park Lake has been endorsed by the Catchment Management Authority. VicRoads are advising on entry and exit points for vehicles.

Construction Phase

Once the design competition is finalised and there is an approved design, building permits and preliminary works can begin. The project is estimated to be a two year build from start to finish.

Further information about the project https://greatershepparton.com.au/council/consultation/new-art-museum