The Ceduna District Council will have to pay $330,000 to buy a slipway for its Thevenard marine offloading facility.
The council was notified of this update at its March meeting in a report from chief executive officer Geoffrey Moffat but the additional cost is not expected to push the project over budget.
When the council applied for federal funding through the National Stronger Regions Fund in July 2015, the Department for the Environment, Water and Natural Resources advised that a 99-year lease would be sufficient to secure the land, consistent with another lease over the sea bed on which the facility will be built.
However, Crown Lands informed the council a lease was not possible due to the nature of the proposed development and its use, and instead the council must buy the land, valued at $330,000.
Mr Moffat said the project budget “has sufficient flexibility to provide for the cost of land acquisition”.