Wollongong City Council could end up with a $13 million new road built for free after handing over land worth $3 million for the Albion Park Rail Bypass.
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At Monday night’s meeting councillors will consider handing over council-owned land that is in the bypass corridor to Roads and Maritime Services.
In return, rather than RMS paying council the $3 million for the three vacant lots, it would see that the Yallah Road deviation is be constructed.
The bypass route will cut across Yallah Road, cutting off access to the Princes Highway from areas around Marshall Mount and Avondale.
As part of the deal, which council officers have recommended councillors accept, RMS will construct a Yallah Road overpass across the four-lane Albion Park Rail Bypass.
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Roads and Maritime Services have provided Wollongong City Council with a range of four options for the Yallah Road deviation priced between $13 million and $31 million.
At the low end, the $13 million option would provide two lanes over the bypass.
The top-priced $31 million overpass option will feature two lanes but with a bridge designed to fit four, with a commitment to add two lanes in the future.
“Compared to the estimated construction costs, the valuation figures suggest that there is a substantial financial benefit to council in pursuing compensation via the delivery of the Yallah Road deviation (in lieu of monetary compensation),” the council report stated.
Getting a bridge worth at least $13 million in exchange for just $3 million is a very good deal for council.
But it is understood there are benefits for Roads and Maritime Services.
The Yallah Road bridge would improve the traffic operation of the nearby Haywards Bay overpass.
Also, there are understood to be cost savings that would come from constructing the bridge at the same time as the Albion Park Rail Bypass.