UPDATED TO INCLUDE COMMENTS FROM LEVEL 33

In response to The Bugle asking for an update on when the sale of Akuna Street will be settled, Council has revealed that, a month after the successful tenderer was announced, contracts have not yet been exchanged with Level 33 due to legal advice being sought.

When contacted, Level 33's Eddy Haddad was surprised by the news, "We are all ready to exchange."

The sale of the prime central Kiama site is a central element of Council’s plan to urgently improve its going concern and liquidity position. In June, Council had a negative cash balance of $1.2 million for the month, and a quick sale was being relied upon to correct this.

A statement from Council says, “A number of matters have been raised and Council is seeking legal counsel. Until these matters are resolved, the contract will not be executed.

“An initial meeting with Council’s legal counsel occurred last Friday 22 July and matters are being worked through.

“We are unable to comment further at this stage for legal reasons.”

While the amount offered by Level 33 is not yet known, it did offer a 42 day settlement which would be almost over by now in normal circumstances. Budget documents revealed an estimated sale price of this and other smaller land sales of $23.4 million (using a mid-point between the Akuna offers).

The motion authorising the sale said that proceeds from the sale of the land will be directed to Council's Land Development fund, Employee Leave liabilities, Loan Restrictions – TCorp, and Blue Haven Independent Living Unit deposits restrictions; as well as providing cash injections to Council’s operational and capital budgets.

Mr Haddad says, "Level 33's vision is to work closely with Council and residents to achieve a high end result that the area requires, with apartment buildings and large format retail specialty stores on the ground floor, including a supermarket.

"We will be appointing urban designers and architects to design the best outcome for the site."

He says his family owned builder/developer firm takes a lot of pride in its work, "We are here to set a benchmark in the Kiama area."

The Town Centre DCP, expected to be endorsed soon, will guide what can be built on the site.