“The University will be required to consider cancelling this M$160 project”: Inside the SA8 clusterfuck

Figure 1 — Email Chain between ANU and ACT Government

During November last year, following a months-long negotiation with the ACT Government, the ANU paid nearly two million dollars for a small plot of uninhabited land for its latest student accommodation project (see below, BLK 1), according to documents released by the Australian Capital Territory Planning and Land Authority (ACT PLA).

Figure 2 — Block 1, which the ANU eventually acquired for $1,815,000

The University’s ‘Student Accommodation 8’ (SA8) project, located on a far corner of the campus, was meant to provide nearly 2,000 beds to alleviate University’s housing crisis. As of now, the $146m project has been delayed for nearly two years and has seen a sharp reduction in its number of beds due to unsuccessful negotiations with the ACT Emergency Services Agency (ESA) over land access.

The documents obtained under Freedom of Information (FOI) reveal the details of the University’s unsuccessful negotiation with the ESA to relocate its construction of an emergency services site. The ESA had initially intended to build where a significant portion of the SA8 site is currently being built, before partially relocating its “critical facility” in a compromise with the ANU.

Documents previously released under FOI reveal how it was not until very late in the process that “the ESA became aware of the extent of planning the ANU had undertaken.” According to the recently released documents, the ANU did not consult the ESA until it was informed by the National Capital Authority (NCA) that it would not approve its construction until the ANU consulted the ESA over the placement of an emergency services site.

Following an initial meeting on 26 February 2019, then ANU Director of Property Development repeatedly sought to resolve the matter with the ESA as a matter of “urgency”. The emails obtained from the ANU Director as part of the negotiations were rife with grammatical errors and often addressed critical ESA counterparts with “g’day”.

Figure 3 — Gday Gents email

In an email on 6 March 2019, the ANU Director sought clarification on the site and warned that “[t]his matter has now reached a critical stage where the University will be required to consider cancelling this M$160 Project [sic] Your advice ,in [sic] the manner sought , would [sic] therefore be appreciated [sic]”

Following another meeting with the ESA, the Director sought to push the project further, writing on 12 March 2019 that, “I’m concerned that time is passing when we need , not [sic] to identify every issue, but the envelope for potential ESA facility and consequent advice to NCA [sic]”

Despite the ESA clarifying they needed to undertake consultation with other stakeholders, the Director responded on 13 March 2019 that they “have been requested by [then COO] Chris Grange from the ANU” to follow up urgently.

Following the ESA’s response, the Director responded again on 13 March 2019 that “A week makes the difference between our ability to open the Student Accommodation for the beginning of Semester 1 2021 and having to cancel or at least delay the Project for 1 year at best [sic]”.

In a formal letter to the ANU on 29 March 2019, the ESA note that they’ve identified a potential option for compromise following its consultation with stakeholders. Five days later, on 3 April 2019, the ANU notifies the ACT Government about their “Agreement in Principal [sic]” and claim that the ESA has agreed to a new site for the emergency services station.

Except that, two days later on 5 April 2019, the ESA writes back to the ANU saying that they never reached an agreement on the position of the ESA site, restating that they only identified an option for discussion so to allow the land release process to continue.

On 1 May 2019, the ANU Director emails the ACT PLA asking for the matter to be resolved within 48 hours for so they can submit their papers for the University Campus Planning Committee agenda.

On 6 May 2019, in an email “[s]ent from my iPhone, please excuse brevity and typos”, the Director asks that the ESA’s proposed compromise be “THE LAST PLACE” for the site to be located, since it would result in the loss of one building with approximately 250 beds.

Yet, despite no agreement being reached, the University pushed on with construction works even though the sale of the land had “not been anywhere near [ACT] Cabinet”. In an email on 7 August 2019, the Director notes that he was informed that the ACT Government did not support the NCA works approval and that any early works should not have been approved.

In an email on 13 August 2019, the ANU “concedes that it has marginally encroached upon” ACT government land as part of its construction preparation works. They also admit to “a further minor incursion” as part of its works preparation.

This results in a written direction from the ACT Government that “the ANU will consult directly” on any further construction on their land, which the ANU said it “understood”. According to the ESA, it resolved the emergency services site matter with the ANU in August 2019.

Over one year later, on 18 November 2020, the University then signs an agreement to purchase the 6,526sqm of uninhabited land for a total of $1,815,000.

Figure 4 — Price and Sale of Land to ANU

Previous comments by an ANU Spokesperson indicates that SA8 will be completed by October 2022. They did not confirm the extent of the budget overrun due to these delays. The University has previously blocked a FOI request into an Ernest & Young review of the project.