Council has moved to support the Eden Killer Whale Museum (EKWM) by agreeing to act as guarantor for a $600,000 loan needed to complete the museum's upgrade.
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EKWM presented a plan for expansion of the museum to council on 28 April 2021. Council said the project was partially grant funded but required additional external financing of $600,000 to fund potential cost overruns and fit out expenses and the EKWM asked council act as guarantor for a loan to cover these costs.
Council staff recommended against acting as guarantor, and were concerned council would effectively be "undertaking" this loan.
"Consideration needs to be given to why enter into such an arrangement when council has no invested interest in this facility and its expansion does not align with council's Long-Term Financial Plan or Asset Management Plans," director of business and governance Iliada Bolton said in a report to councillors.
Ms Bolton was also concerned that the move would set a precedent for other community groups or organisations to seek similar support of this nature.
But councillors were of the opinion the project warranted their support.
Mayor Russell Fitzpatrick accepted council could be liable but believed the situation was "out of the normal".
"I hear staff warnings and know they must advise against this to protect council but at the end of the day we are here to support the community and I don't think this will be a problem," Cr Fitzpatrick said.
He said it was a major tourist attraction in Eden which ran with the support of many volunteers.
"It is outstanding and well worthy of council's support. Once the cruise ships come back there will be big numbers coming through the museum," he added.
Crs Tony Allen, Robyn Bain and Cathy Griff all spoke in favour of support for the EKWM with Cr Griff saying that "whales are us is a symbol of the whole shire".
Council unanimously agreed to act as guarantor for a building extension loan of $600,000 on a principal and interest repayment loan over 15 years. The EKWM must provide detailed financials for the project, no later than October 31 each year to confirm that EKWM is in a financial position to meet repayments.