Shellharbour council will move to keep the future revenue from its prized Shell Cove marina away from the clutches of Wollongong residents in the event of a council merger.
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In a report to Tuesday night’s meeting, corporate policy director Lee Furness recommended councillors quarantine the expected millions, so the money can only be used “for the benefit of present and future citizens of the current Shellharbour local government area (LGA)”.
The project – which includes the housing development, town centre, golf course and marina – is estimated to be finished by 2025, the report says. At that time, the council and developer Australand are expected to share in a surplus of $60 million, with the council receiving more than $30 million.
However, there is a provision for the funds to be distributed before the end of the project, which would allow the council to allocate the capital to certain projects and its own investments, the report said.
“It is important for council to come to a view on the protection of the capital given the government’s proposed merger with Wollongong,” Ms Furness said in the report.
“If the merger were to proceed this would see the capital taken by the new entity and possibly used for activities which may not be to the benefit of Shellharbour residents.”
While there is no concrete suggestion for how the council will secure the money only for Shellharbour LGA residents if a new council is formed, Ms Furness set out several New Zealand examples and suggested councillors allow staff to further “investigate” how to protect the surplus.
“There is no doubt that it is the role of the council to be the guardians of the interests of the citizens,” her report said.
“To this end the council has an obligation to do everything it can to safeguard the anticipated capital...”
Under NSW Government rules, councils subject to a merger proposal cannot make “significant and/or ongoing financial commitments that will be binding on a new council”. Additionally, under the Local Government Act, councils may not “deliberately or needlessly” expend resources to minimise the resources available to a new council.
However, Ms Furness said the Shell Cove windfall had not been factored in to Shellharbour council’s financial calculations ahead of the merger plans, so believed it was “prudent” for the council to protect the money.
The attempt to “safeguard” the Shell Cove money is the latest effort from Shellharbour council to ensure its residents remain segregated from Wollongong citizens in the event of a merger.
For instance, last month councillors voted to seek an interim heritage order for its northern boundaries and have repeatedly warned there would be a “takeover” from Wollongong if the merger goes ahead.
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