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Sale of Bonaira will decide Kiama Council’s future

The Bugle App

Malcolm King

23 May 2024, 6:56 AM

Sale of Bonaira will decide Kiama Council’s future

Kiama Council’s future will be decided in a confidential session on Monday, when Councillors vote to accept, or reject, the sale offer for Blue Haven Bonaira.


Kiama Council gave CEO Jane Stroud the authority to negotiate with the preferred tender, whose identity is unknown. Council will make public its decision at the end of the meeting.



As reported in the Illawarra Mercury recently, Mayor Neil Reilly said the council had received the ‘highest and best offer’ and the meeting on Monday will determine whether to accept it or not.


"I can't pre-empt what the Councillors are going to do,” he said, “but, for my money, I think that we should accept.”


The day of reckoning is here and not everyone will be happy. Photo credit: ASU Center for Services Leadership.


In a joint statement, Labor Councillors Imogen Draisma and Stuart Larkins, said the sale of Blue Haven Bonaira should go through to ensure the Council meets its obligations.


The sale has had numerous reports, and was supported by the recent Rayner Report and the current Performance Improvement Order (PIO) issued by the Minister for Local Government, the Hon Ron Hoenig.



“The Kiama community have been clear with us that local control of Kiama Council is paramount. Our community fought hard to maintain local control of our council in 2016 when we faced amalgamation and we successfully stayed independent,” the statement said.


“If the council goes into administration, we not only lose local control but these hard financial decisions would be made by a distant department with no interest in our highly valued local amenities, our staff or our township,” Councillor Stuart Larkins said.


Cr Larkins said they would only support the sale, "to a tenderer with the highest expertise in the delivery of independent living units and aged care services".


If sold, the champagne corks won’t be popping at Blue Haven Bonaira.


“We must sell Blue Haven Bonaira to ensure Council is meeting its obligations of the PIO and is able to manage its debt, in particular, the Treasury Corporation (TCorp) loan,” the statement said.



“Should the sale of Blue Haven Bonaira and the services delivered from the site proceed… Cr Larkins and myself will continue to ensure that Council and the new owner of the facility work effectively to transition the workforce and maintain the high quality of services,” said Councillor Imogen Draisma.


To stave off administration, the Council made the tough decision to sell Blue Haven Bonaira, which was included in the 2023-2024 Council Budget projections and the Council’s Long Term Financial Plan and the Draft Budget for 2024/25.