The City of Busselton have recommended that council reject the tenders to construct a performing arts and convention centre after bids exceeded its budget by at least $13 million to build the facility.
Tenderers indicated that in the current market prices for materials, trades and high demand had increased costs, which had seen steel, concrete and timber prices rise.
Construction of the centre has been a divisive issue in the community with ratepayers who are against the development expressing it is was too expensive to build and maintain as it was.
Last August, council voted in favour of the centre which was expected to cost $30.3 million with the city borrowing $17 million over 20 years to cover construction costs.
Contributing to the development was a $10.35 million federal government grant and a further $10.65 million contribution from the city.
If council decide to reject the tenders the federal government grant will need to be returned.
City officers have recommended that council do not accept any of the tenders, instead to support a design review to see what could be accomplished without compromising hte functionality of the building.
They are also seeking support to undertake a community survey to inform future decisions on the project.
Council will vote on the matter at its meeting on June 23, 2021.