AT BEGA Valley Shire Council’s first meeting since electing a new mayor, the question of what to do with some white elephant real estate caused much debate.
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The council is facing a bill of $700,000 for a strip of land on Arthur Kaine Dr opposite Merimbula Airport recently valued at just $25,000.
In 1999, council resolved to purchase Crown land from the NSW State Government and use the site, along with council land adjoining it, to create the Merimbula Cultural Centre.
The land was independently valued at $350,000 in 1999, however rezoning of the land has significantly devalued it and its now worth just $25,000.
The State Government has decided it wants the full 1999 valuation price plus interest on the land, bringing the bill to almost $700,000.
Deputations to NSW Treasurer Andrew Constance and Minister for Natural Resource, Land and Water Kevin Humphries to have the interest waived have failed.
Staff recommended seeking to rescind the original purchase offer, but there is no guarantee the council won’t still be presented with the full bill by the State Government.
Mayor Michael Britten instead had a new recommendation, seeking to retain the land while staff investigated using it to establish an airport precinct.
“On the basis of the location, I don’t think at this stage we should rescind when down the track we may need to buy this land back or negotiate with a new owner,” Cr Britten said.
“We need to explore all our options before we rescind outright.”
This received support from all other councillors present bar Cr Keith Hughes (Cr Tony Allen was absent).
“I’m very concerned council is leaving itself open to a bill for $700,000 for land that is of no practical use,” Cr Hughes said.
“If it is needed it could be bought down the track for a lesser amount, the sooner we rescind that original option to buy the better chance we’ve got of escaping it without a huge financial penalty.”
At the meeting council voted on delegates and chairpersons for council committees for the next 12 months.
There was also a well-received unanimous affirmative vote to seek tenders to build two squash courts at the Pambula Aquatic Centre, with members of the Pambula Squash Club giving this decision a round of applause from the gallery.
