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The Queenstown Lakes District Council first announced plans to renovate the playground, between the Queenstown Gardens and The Bathhouse Restaurant, last August.
At that stage it was to have cost $670,000 and be completed by last Christmas.
Council community services general manager Thunes Cloete said safety and a need to revisit the original design had been huge factors through the process, resulting in the increased budget and delays in the delivery timeframe.
''We had originally budgeted $670,000 to complete the project; however, this needed to increase to reflect the higher construction costs associated with meeting design and safety standards and to ensure the space would meet the needs of families now and into the future.''
The revised cost was $999,000, which included a grant of $100,000 from the Central Lakes Trust.
The work would increase the size of the playground and include installation of new play equipment, safety surfacing, more seating and walkways.
''This project is about creating a family-friendly environment in a high profile, town centre location and a destination play space that can be enjoyed by children and adults from all over the district and the world.
''It also sits beautifully within our unique natural environment with features such as climbing rocks, the use of wooden materials, riparian planting along the creek, extensive landscaping, and organic shapes throughout, whilst retaining shade and structure through the existing trees,'' Dr Cloete said.
It was being built by John Fillmore Contracting (JFC Ltd), which built the Margaret Mahy Playground in Christchurch.
Dr Cloete said the project, which will be called the Queenstown Gardens Commemorative play space, was due for completion this October.