Mayor Neil Reilly and Council CEO Jane Stroud are frustrated that a major opportunity to improve Kiama Council’s financial position, by selling land it owns at Spring Creek, is being stonewalled by the State Government.

“30 years ago we did State Rail a giant favour by not subdividing and developing the land at their request, as that would have stopped quarrying,” says Mayor Neil Reilly.

“We said that for $1 million we would agree to a caveat on the land with regard to vibration [from the quarrying] and that when the technology was improved we could have that caveat removed.

“They haven’t held up that end of the bargain.”

The covenant has the effect of limiting the ability to build housing on the land until quarry activities cease.

Council owns both five fully serviced housing blocks on Glenbrook Drive (2772m2), and a 22.7 acre (9.2ha) holding of residential zone land opposite and to the north of them.

Some master planning was done on the site in 2018, but it has not been formally subdivided. It is believed it would yield upwards of 90 blocks, possibly as many as 120.

First National Coast & Country’s Terry Digger says standard blocks in the area are selling for $900,000 to $1.1 million.

The map showing the Spring Creek holding in red and the five blocks outlined in orange to their left

Ms Stroud says that developer contributions could fund better access to the suburb, upgrading the bridge over Spring Creek and possibly even providing a ramp onto the highway.

Back in August, the Minister for Regional Transport and Roads, Sam Farraway, rejected their appeal to lift a covenant preventing the sale of the five blocks on Glenbrook Rd, “as quarry operations are not scheduled to cease for a number of years… it is inappropriate to consider the release of the covenant at this time.”

Ever since Council has been seeking meetings with the Minister for Local Government, Wendy Tuckerman, and the Minister Farraway without success.

“There is a large degree of unfairness in the caveat we have,” says Mayor Reilly.

“Since it was put in place decades ago the quarrying has cut down and the technology used for blasting is so much more effective and the vibration is so much less than it was.

“Besides which, there are many properties that have been approved and built closer to the quarry than our landholdings.

“There is no justification for not lifting it.”

Ms Stroud says, “In Council’s divestment register it appears as some of the land most ready to be sold, but it is out of bounds.

“We need to do whatever we can do to restore Council’s financial position and to address the Performance Improvement Order, and this is an obvious action.”

The Member for Kiama, Gareth Ward, says he is doing what he can to help, having conveyed Council’s concerns after the August decision.

“I have encouraged the Minister to meet with Council to better understand and appreciate their concerns. I've also encouraged the Regional Parliamentary Secretary to meet with Council so that he can join the advocacy effort.”

Such a meeting has just happened with the Parliamentary Secretary for Wollongong and the Illawarra, Peter Poulos.

‘I took the Parliamentary Secretary, Peter Poulos out to Spring Creek yesterday and he saw and understood first hand the need for his colleagues to lift the caveat over council’s land holdings in that area,” said the Mayor after the visit.

“He is a strong advocate for the council to realise both the sale and ongoing revenue potential for that development.”

Mr Poulos told The Bugle, “As the Parliamentary for Wollongong and the Illawarra, I take the view that my role is to advocate directly to Government and in particular Ministers when I am approached to do so.

“I intend to once again revisit this matter on behalf of the Council and will reinforce my previous representations to Minister Farraway.”

The five blocks on Glenbrook Road are surrounded by houses, some of which are closer to the quarry, yet can't be sold

When approached for comment, a spokesperson for the Minister for Local Government, Wendy Tuckerman, said, “Decisions around the covenant on the land at Spring Creek near Bombo Quarry are a matter for the Minister for Regional Transport and Roads.

“The temporary financial advisor appointed to Kiama Municipal Council under the Performance Improvement Order will assist the council at a time when it must make significant decisions to ensure its long-term financial sustainability.

“The Minister for Local Government recognises the work being done by Kiama council to address its financial challenges and encourages the council to continue these efforts.”

No response was received from Minister Farraway’s office.

The two endorsed candidates for the March State election support the lifting of the covenant.

“I share the concerns of Kiama Council about this covenant and support the efforts to repeal it,” says Labor’s Kaitlin McInerney.

“Our electorate is in the midst of a housing crisis and keeping land that has been earmarked for development for 30 plus years locked up on such outdated terms is not tenable. It hobbles our ability to welcome new residents to the area and play our part in housing a growing population NSW in a sustainable way.”

The Greens candidate, Tonia Gray, is looking to future decisions that need to be made once the covenant is lifted.

“Any future development and major decisions should be underpinned by balancing out the three ‘Ps,’ Planet, People and Profit,” she says.

“Spring Creek has sensitive wetlands and we need to hear how these factors are balanced out and addressed.”

As yet, a decision as to whether Council would embark on subdivision itself, as it has done in the past, or sell it to a developer has yet to be made.

“We have to get a market valuation, consider what it costs per lot for development and how resourced we are as an organisation, and together with the councillors make that decision,” says Ms Stroud.

“I haven’t ruled it out yet, but we need to weigh up the facts.”