Kiama Mayor Neil Reilly has rejected suggestions the council is engaged in a "fire sale of assets".
During a recent NSW Budget Estimates session, Local Government Minister Ron Hoenig was quizzed by Greens MLC Dr Amanda Cohn about the sale of Blue Haven's Bonaira aged care centre.
Dr Coen said she was concerned the sale could be completed in a few months and asked if the minister would intervene to stop that.
The minister said he has asked the Office of Local Government to look at a range of matters about Kiama Municipal Council.
"I'm also very concerned, bearing in mind their financial position," Mr Hoenig said, "in relation to other asset sales that have been occurring, because I want to be satisfied - not directly related to Blue Haven, but generally speaking - whether or not the council are getting a fair return for the other assets that they are selling - whether or not they are a fire sale of assets."
Mayor Reilly said there was no such "fire sale" taking place.
"My point is that it must be a very slow burn because the only thing we've sold in the past 12 months is a parking lot that was scheduled for sale for eight years," Cr Reilly said.
That would be an under-utilised car park in Akuna Street, which sold last month for an as-yet undisclosed price.
A separate parcel of council-owned land in Akuna Street was sold last year.
"That was bought by council I think in 2016 for about $8 million," Cr Reilly said.
"We finished up selling it eight years later for $28 million - I wouldn't call that a fire sale."
In terms of the Office of Local Government acting on the minister's request to look into things at the council, Cr Reilly said that was hardly new.
"We meet with the Office of Local Government on a weekly basis," he said.
"They're interested in our long-term financial statements, they're interested in the way we are divesting to ensure that we're using the proper probity processes. They make sure that we are doing things on an up and up basis.
"The minister is aware that we are meeting on a weekly basis, so that's a good point of contact for him to see if everything is going on the up and up."
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