State Acts On Land Furore
Illawarra Mercury
Tuesday July 29, 2008
THE future of one of two planned hotel developments for Nowra is in doubt after the intervention of NSW Local Government director general Garry Payne.
Mr Payne has written to Shoalhaven City Council asking it to reconsider the decision to sell council-owned land to developers Huscorp.The council has agreed to suspend negotiations with the company. Several issues were raised by the department over the sale process, including the fact part of the land has been identified by the department as community land.Under the Local Government Act, a council has no power to sell, exchange or otherwise dispose of community land.Mr Payne is also concerned that there was no documented account as to why council invited Huscorp to present its development proposal when it failed to lodge an expression of interest within the required time frame.He also stated there was no documented account why Huscorp was chosen as the preferred purchaser, or why council was prepared to sell the land to Huscorp at a substantial discount to market valuation.Mr Payne said the council "appears to have failed to heed its legal advice to consider obtaining further valuation advice".It had also ignored its own community consultation strategy. The proposed development, which includes adjacent nine-storey apartment buildings, bears little resemblance to that described in the advertisement for expressions of interest.Shoalhaven Council has faced strong community criticism over its dealings with Huscorp.It has been accused of selling the land for the hotel neighbouring the new Shoalhaven Entertainment Centre and another council-owned car park in Huskisson at less than market value.In April, the council rejected a motion from Councillor Gareth Ward to suspend dealings with Huscorp after two of the company's directors resigned pending criminal charges.Shoalhaven council general manager Russ Pigg said the council would suspend its negotiations with Huscorp as requested."We will re-research each point raised and then seek a round-table with the department to work through the issues before council makes a final decision," Mr Pigg said.The department identified issues with the land sale in a review of Shoalhaven City Council similar to one it conducted into Shellharbour City Council in late 2005. Plans for a rival hotel on the Shoalhaven riverfront, backed by the Shoalhaven Business Chamber, have been lodged with the NSW Department of Planning.
© 2008 Illawarra Mercury
