A Senate committee urged the Palaszczuk government to reconsider the decision to host the event at the Gabba and the massive rebuild in an interim report released on Thursday.

“It may also be unwise and inappropriate for the government to insist that a redeveloped Gabba host the athletics for the Games,” the report has found.

The review comes after Victoria withdrew from hosting the 2026 Commonwealth Games after claims of an estimated $7 billion cost blowout.

Costs for the Gabba rebuild have more than doubled, now estimated at $2.7 billion, increasing capacity by 8000 seats to 50,000, with land between the stadium and nearby Southbank declared a priority development area.

The new Gabba will be the official home of the Brisbane Olympic and Paralympic Games and is billed as “one of the most accessible stadiums in the country”.

Heritage-listed East Brisbane State School has been earmarked for demolition, a decision that has sparked a backlash from the local residents and has come under fire from the committee.

“State governments should not use major events as an excuse to fast-track already-planned urban development against the wishes of their citizens and local communities, and without due diligence,” the report found.

The committee was also concerned about the proposal to build an expensive Whitewater Centre at Redland, proposing facilities purpose-built for the Sydney Games as a cost-effective option.

The senators recommended Canberra work with the Queensland government, affected communities and Games organising bodies to urgently review the decision to host athletics at the Gabba, plus plans to demolish East Brisbane State School.

“The review should consider the feasibility of alternative options, including using existing infrastructure, and work to find a solution that is acceptable to these communities,” the report states

Committee chair and Nationals senator Matt Canavan said all infrastructure options should be considered.

“Look, this is an interim report, so we’ll have a lot more to say about the Olympics in our final report,” the Queensland senator told ABC radio on Friday.

“I do think those local communities of East Brisbane and Redlands need a lot more consultation.

“Look, we’re gonna put on a good Games, I’m really confident of that, but I do think we’ve fallen down in how we’ve involved the local community.”

The state government previously has defended the project, saying the rebuild would be necessary even without the Olympics due to the Gabba’s age and because reconstruction was less “risky” than a refurbishment.

That was disputed by several witnesses at the hearing who said the stadium could be upgraded or rebuilt on a smaller footprint if it was not used to accommodate Olympic athletics.

The final report is expected to be delivered in December. The Queensland government has been contacted for comment.