Shoalhaven City Council Mayor Joanna Gash says no decision has been made on the management of the combined Shoalhaven Entertainment Centre/catering division and the Nowra Visitor Information Centre, despite approaches to Wollongong City Council.
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The suggestion to approach Wollongong came from Shoalhaven council's controversial Organisational Review Transformation Task Force, which endorsed council staff to explore the option.
The move could see Wollongong council take over the management of the three sections on a fee-for-service basis or on a contracted basis.
It could also include the possible relocation of the Shoalhaven visitor centre to the Shoalhaven Entertainment Centre. However, concerns over insufficient parking for motorhomes and caravans have been raised.
The $23.5 million Shoalhaven Entertainment Centre opened in 2008, when veteran Shoalhaven councillor Greg Watson was mayor.
Cr Watson said the Shoalhaven centre was subsidised to the tune of $700,000 last financial year, "but that's just what it costs".
"That is the cost of operating centres like this," Cr Watson said.
"Our swimming pools cost $3 million a year, libraries cost millions and don't make a profit, it is facility we fund for community," he said.
Cr Watson said it would be a "mad idea" to have Wollongong manage the centre.
"It would be like putting Dracula in charge of the blood bank," Cr Watson said.
"We are effectively in opposition to Wollongong - they are trying to get conferences and attract our customers and we are trying to attract their customers to us."
Cr Gash said the council was looking at its options.
"We are coming up with options under the review and are looking at all of them," she said.
"No decisions have been made. We are reviewing everything and this is one of the things that will come up shortly."
Cr Watson said Shoalhaven council had advertised for a new centre manager after the previous one departed six months ago.
Simon Hinton, the chief executive officer and artistic director of the Merrigong Theatre Company, which manages the Illawarra Performing Arts Centre, said IPAC had held discussions with Shoalhaven council about how the two venues might operate together.
"Since then, Shoalhaven City Council has shown no further interest in this proposal," Mr Hinton said.