The minutes of the Confidential session of the June Council Meeting, released yesterday, have given an insight into the extent of the divide between councillors on the sale of Akuna St.

Prior to Level 33 Property Group being awarded the tender for the sale of the Akuna St holding, on the recommendation of staff, Councillor Matt Brown attempted to reject the tender outcome in favour of entering into negotiations with Charlie Daoud’s Traders In Purple (TIP) to be the successful tenderer.

This echoes the motion he proposed in April 2021, which was rejected in favour of embarking on a competitive tender process.

Cllr Brown and seconder Councillor Warren Steel have been supportive of the urban design concept that Mr Daoud has for the site (including adjacent acquired properties) since it was first shown to councillors in December 2020.

Staff advice was to separate out the sale of the land from the issue of what will go on the site, for that will be decided on the lodgement of a DA governed by a site specific Development Control Plan.

While exactly what happened at the meeting remains confidential, the Minutes show Cllr Brown’s motion offered the following reasons why TIP should be preferred:

• TIP offered above market valuation
• TIP offered favourable settlement terms (90 days)
• TIP offered to build a community space (the old Mitre 10 site the value of which has not been taken into account and could be valued at more than $7 million which would then make it the highest bidder)
• TIP have provided good developments, such as Bathers, in our local community
• TIP have shown good faith to Council and the community by withdrawing their development application over 66 Collins Street which they plan to incorporate in the potential new development
• TIP provided a much more detailed submission of what they propose to build and which has already been viewed positively by many in the community
• TIP have indicated they wish to start work in the immediate future which minimises the risk of land banking.

Cllr Brown’s motion was defeated by the votes of Councillors Draisma, Keast, Larkins, Reilly and Rice; after gaining the support of Croxford, Renkema-Lang and Steel.

Traders In Purple's concept, to create a new street and other open areas

The motion to award the tender to Level 33 was passed along the same voting lines.

The amount offered for the land by the successful tenderer is still confidential and will be disclosed once the sale has settled in the 42 day term offered.

Following news of their lost bid, Charlie Daoud, whose family is thought to have already sunk $5 million into the site since Council first put it on the market in 2016, issued a statement saying, “Traders In Purple are incredibly disappointed that Council has chosen a different path for the Akuna Street precinct redevelopment.

“We have been involved with the site for many years and engaged some of Australia’s leading designers and placemakers, to propose a vision for a new civic heart, one that put people first and delivered the best social, economic and cultural outcome for Kiama.

A render of the Traders In Purple concept

“The ownership of adjoining properties enabled Traders In Purple to propose a superior outcome for the site opening up connections to four streets allowing for a range of community benefits, multiple new public areas and carparking options.

"This represents millions of dollars in ongoing community benefit likely not considered by council.

“Our visionary proposal has been embraced by local retailers and the business community and we are disappointed that we will not be able to deliver it for the community of Kiama.”

The Bugle has attempted to contact Level 33 to find out about their vision for the site.

On the announcement of the sale, Council said the EOI and selective tender process, managed by commercial real estate agency Savills, required prospective purchasers to nominate a purchase price and settlement terms, with Council commissioning its own valuation advice.

The EOI and selective tender process were conducted in accordance with Local Government Regulations and following a Probity Plan developed by legal advisers.

The motion that was passed says 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.