Kiama mayor Brian Petschler wants it known Kiama council played no role in the decision to relocate beds from Kiama Hospital.
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Kiama council is in the process of buying the 3.3-hectare hospital site from the Illawarra Shoalhaven Local Health District for a $58 million Blue Haven aged-care development, with the health service to build a new facility on the land to continue delivering outpatient services.
The 20 sub-acute beds from Kiama Hospital site will be relocated to Port Kembla and eventually to a redeveloped Shellharbour Hospital.
Kiama Hospital Auxiliary president Barbara McClure said the auxiliary and community was angry about the loss.
Labor candidate for Kiama Glenn Kolomeitz described the relocation of Kiama Hospital's beds as deception, but Kiama MP Gareth Ward said the beds would eventually move to new state-of-the-art facilities on the Shellharbour Hospital campus.
Cr Petschler said the council was being unfairly criticised by some who said it was the council's decision to relocate beds.
"We were approached by Terry Clout who was the CEO of the then South Eastern Sydney Illawarra Area Health board some four years ago about the long term use of the hospital site," Cr Petschler said.
"In the meantime we have had a series of discussions with the old area health board and the old government - then the new area health board and the new government - which has led us to where we are now.
"We have responded to the area health board and the government's decision to move the beds, we have not had an play in that decision to move the beds.
"If we don't get the site I don't know what would happen to the site, but there would be no beds there and it would presumably be sold off and used for other purposes."
Kiama council is also facing criticism over its plans to sell eight residential lots at the southern end of the hospital site to fund the project.
The Kiama Residents Against Sell off of Hospital land (KRASH) will host a community meeting on Tuesday, October 28, at Kiama Leagues Club from 7.15pm.
The council said the sale of the eight residential lots would assist with cash flow during the early stages of the project.
Cr Petschler said the value of the development sits at $58 million subject to final planning.
"We don't have unlimited resources," Cr Petschler said.
"I don't think any organisation can look one or two million dollars in the face and say we are happy do away with that, especially for a reserve which would be at the rear of the block and available only to some people who immediately adjoin it."
Cr Petschler said the site can't be developed for aged care use because of fire regulations.
"The whole site, other than that area at the rear, will be in a parkland setting which will be free for people to use, with pathways and Barroul House at the centre of it as a community facility.
"The ... council is already having difficulty maintaining these reserves to the state we want to keep them now."
