Kiama Municipal Council has unanimously endorsed a revised agreement for the sale of Blue Haven Bonaira to Hall & Prior Aged Care, lowering the gross sale price from $95 million to $89 million. The decision, made during a confidential session of this week’s extraordinary Council meeting December 10, raises questions about the handling of the process and the financial implications for the community.

The adjustment follows findings during due diligence, which identified building issues requiring rectification. However, with the sale still expected to settle in February 2025, some residents and stakeholders may question whether this outcome truly represents the best value for the community.

Council initially celebrated the $95 million agreement in July 2024, but the $6 million reduction has now been attributed to building issues that were reportedly known since the facility’s completion in 2019.

Mayor Cameron McDonald acknowledged the price adjustment but defended the move. “The adjustment to the price was necessary to reflect the reality of the building’s condition and the work required to address these issues,” he said.

The Council projects a $19 million surplus from the sale, primarily to clear its $15 million TCorp debt, which Mayor McDonald described as crucial for the Council’s financial recovery.

“This divestment is critical to our path toward financial sustainability,” he said. “It allows Kiama Council to refocus on our core responsibility of delivering municipal services.”

Building defects have been a known issue at Blue Haven Bonaira since its completion in 2019, and the Council has reportedly worked to address them over the years. The due diligence process uncovered additional problems, further reducing the facility’s valuation.

Council has initiated legal action against the contractor responsible for the construction, but is this too little, too late? Many residents may question how such defects were allowed to persist and what accountability measures were in place to ensure the project met expectations.

Hall & Prior CEO Graeme Prior visited the site this week, pledging a seamless transition and a commitment to resolving the building issues. “We are focused on ensuring the sale process is handled with care, transparency, and professionalism,” he said.

Mayor McDonald conceded that the Blue Haven project offers lessons for the future, including the need for improved project management and oversight.

“Our new Council came into office with a good awareness of the issues involved with the Blue Haven Bonaira build,” he said. “We are focused on putting the past behind us and moving forward for our whole community.”

Kiama Council has emphasised transparency throughout the divestment process, offering updates via its website, newsletters, and meetings. But key decisions, such as the price adjustment, were made in a confidential session. 

As the sale moves toward settlement, some in the community continue to question whether this decision truly represents the best path forward given the precarious nature of Council finances and operational issues.