Shoalhaven City Council will formally move to call in the Shaolin Foundation’s outstanding mortgage payments on the Comberton Grange property at Falls Creek on Tuesday afternoon.
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General manager Russ Pigg has prepared a report for the Property Steering Committee recommending issuing formal notice to make payment of all outstanding funds under the mortgage agreement.
That will give the foundation a month to pay the outstanding fees.
Mayor Joanna Gash said she would move the recommendation.
“As a result of recent developments [the foundation’s second $1 million cheque for the land not being honoured] we will move formally to give the foundation 30 days to make all payments and to meet the terms of the agreement,” she said.
“That still allows the foundation a month to do it all if it wants to. It will take in the date for the third cheque [February 23].
“It’s been a really hard decision. I had to weigh up the advantages for the city and weigh up somebody’s word of honour. I have put myself on the line with this.
“I’m never too proud to say if it doesn’t come off at least we gave it every opportunity for the city.
“We brought it to head in two years. It has been sitting with past councils and under previous mayors for years.
“As I have said before if the foundation didn’t come good with its payments I would be the first to make sure we reclaim the land.
“We have a quarter of a million dollars deposit, $1 million in the bank and $600,000 in the bank in interest payments and we still own the land.”
Cr Gash took exception to a statement by fellow councillor Andrew Guile that she and some other councillors were “too close” to the developers and should exclude themselves from future decisions on the project
“I find it offensive, he [Cr Guile] has known Patrick Pang from previous council terms a lot longer than I have,” Cr Gash said.
“Cr Wells and myself went to meet the Abbott to assure him that comments made by certain politicians didn’t reflect how we felt here.
“He [Cr Guile] has also been to China at the expense of council.”
This was emphatically denied by Cr Guile.
“I was billed by council for the entire trip as per the agreement I made with [then mayor] Paul Green. I went at the invitation of Paul Green.”
“I have the receipts and cheques to prove everything was paid for by ourselves, including meals and there weren’t that many,” Cr Gash said of her own trip.
“I did it at my own expense because I believed in the project.
“There has been so much negativity on this issue caused by two councillors who have never supported this project and done everything in their power to see it fail.
“Previous mayors have also been there. The role of the mayor is to try to bring the best to our city I have done the best I possibly can. It’s time he got over the sour grapes.”
General manager Russ Pigg said he had not spoken to Mr Pang in the past couple of business days but had been dealing with foundation secretary Phil Balding.
“The latest advice I had, they were making every endeavour via Patrick to make good the funds today [Tuesday],” he said.
“Council took the three cheques on face value and good faith and things looked good when the first cheque was honoured but it doesn’t look as good the foundation’s second cheque was not honoured. I don’t know what to make of the whole thing now.
“The current circumstances are why I have recommended to go to a more formalised path and bring closure to the whole matter.
“The benefit to the area could be enormous through tourism and economic development. We have bent over backwards to try and help – we have strung out enough rope. Now is the time to start hauling it back in.”
