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Developers Highlight Risks and the Need for Expertise in Kiama Council’s Property Strategy

The Bugle App

Lynne Strong

16 November 2024, 6:02 AM

Developers Highlight Risks and the Need for Expertise in Kiama Council’s Property StrategyGasworks Gate Valves


The Bugle’s recent article, Kiama Council's Strategic Property Acquisition and Depot Relocation: Vision Meets Concern, has sparked an important dialogue about the risks and responsibilities involved in council-led developments.


Central to the council’s strategy is the plan to rezone the Belvedere Street site for residential purposes. This move aims to address community needs, particularly Kiama’s housing shortage.


Mayor Cameron McDonald has highlighted the site’s proximity to the town centre and train station, describing it as an ideal location for residential development and a forward-looking decision by the newly elected council.



Developers interviewed for this story stress the significant financial and logistical challenges posed by contaminated sites, such as remediating the Belvedere Street site, which sits on a former gas works. Drawing on extensive experience with contaminated site remediation, one developer underscored the scale of these challenges. “The remediation process is rigorous, uncertain, and carries a high risk of cost blowout,” he explained. This warning comes in the wake of recent incidents where councils have struggled with complex property transactions that have highlighted a lack of expertise.


Developers have recommended that councils establish formal advisory groups comprising industry professionals and skilled community members. “Some councils resist setting up specialist citizen advisory committees who could provide critical guidance on project risks, timelines, and best practices,” another developer noted.



This reluctance to seek specialised advice has, in the past, resulted in costly missteps, such as the significant budget blowout on a council-managed retirement project. To avoid repeating these mistakes, councillors must step into their role as stewards of public interest, ensuring accountability and acting as a vital check on council administration.


By embracing external expertise and prioritising transparency, councils can mitigate risks, avoid financial pitfalls, and foster greater trust in their governance. As Kiama Council navigates this ambitious project, these insights highlight the critical importance of informed decision-making to ensure long-term community benefits.