City of Ballarat mayor Des Hudson said council was not aware cancelling the Regional Victoria Commonwealth Games was on the table.
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On Tuesday morning, Premier Dan Andrews announced the Victorian Government would no longer be hosting the 2026 Commonwealth Games.
Cr Hudson said he wants to think of it as a "glass half full situation", and a blow out cost of up to $7 billion would be something taxpayers and the community would ultimately pay for.
Cr Hudson said while the announcement was disappointing and Ballarat council had already invested possibly hundreds of thousands of man hours, he was pleased with the infrastructure Ballarat would gain.
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"We're certainly committed to ensuring that the state government delivers on what they've committed to for our community, and I certainly have great confidence that that will be the case," he said.
"We could have not been chosen to be one of the areas and then we wouldn't be getting this long lasting legacy.
"The trade off is yes, the Commonwealth Games are not going to be delivered but all of the other associated infrastructure will happen and we will be the beneficiary of that."
The government confirmed Ballarat would still be getting Mars Stadium expansion of 5000 permanent seats, with improved accessibility access and a new athletics track.
Another project confirmed was the Ballarat train station upgrade, which Cr Hudson said was interesting as it was not a specific games project.
"That $49.18 million was already forecast and a line item in this current budget, so we expect that to be absolutely guaranteed," he said.
Council's Economy, Experience, and Commonwealth Games directorate role, which was announced earlier this year, will continue on.
"The Commonwealth Games was just one part of that business, but there is tourism, economy, business investment and other things," Cr Hudson said.
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"We still needed that position to be within the city of Ballarat."
Cr Hudson said this announcement came down to what sort of legacy to leave for Ballarat.
"I have two young girls and I think of what the legacy, what the cost of living might have been for them as we go forward," he said.
"The state government has made a decision on the future of the Commonwealth Games and decided that now is not the right time with cost of living pressures.
"We're seeing even in our own projects, that cost of inflationary pressures, labour forces, that projects and delivery for key capital projects continue to rise."
Cr Hudson said the government never stipulated a dollar figure for how much the council would need to invest.
"The Commonwealth Games delivery was not part of our long term financial plan, it wasn't in our 10 year budget. So for us to think we could suddenly find an amount of $5, $10 or $15 million that would ultimately be either ratepayers money or we would have to commit to borrowings and that was never part of the equation," he said.
Athletes' Village
Cr Hudson said the greatest concern was around the athletes village at the former Delacombe saleyards and if the site's remediation had been rushed.
"If there is a better opportunity, at a better planned outcome for the sale yard site that removes King's caveat, the contamination of soil, extra drainage - we get a better long term outcomes for social and affordable housing," he said.
"If you look just further down the road and the state government as part of their massive rebuilds at the moment, and they're demolishing the Leawarra public housing estate, that clearly shows that model wasn't necessarily the best thing."
Cr Hudson said the site rehabilitation timeline was "ambitious".
With the announcement, Cr Hudson said he was "quite comfortable that what we get is going to be a better outcome."
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