KIAMA Mayor Brian Petschler is disappointed by the state government and area health board's "hardline" stance regarding council's purchase of the Kiama Hospital site.
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The Illawarra Shoalhaven Local Health District recently rejected the council's demand it remediate the site before selling it to the council, with remediation costs estimated to be more than $1 million and as much as $6.5 million.
The council is in the process of buying the 3.3-hectare hospital site from the Health District for a $58 million Blue Haven aged-care development, with the health service to build a new facility for outpatient services.
The 20 sub-acute beds from Kiama Hospital site will be relocated to Port Kembla and eventually to a redeveloped Shellharbour Hospital.
The recent discovery of asbestos in areas of fill on the site complicated negotiations regarding the site's purchase.
The council had claimed it was the responsibility of the state government to remediate the site before the council buys the Bonaira Street property.
The $58 million project has attracted $8 million ($4.8 million for the council and $3.2 million for the health district) from the state government through the $100 million Illawarra Infrastructure Fund.
Member for Kiama Gareth Ward said he supported the decision of local health officials to stand firm on the site costs.
The ISLHD said it would transfer ownership on the basis of "sold as is".
"We put the decision-making powers back in the hands of locals and I support their decision," Mr Ward said.
Mr Ward said should the project not proceed, the fate of that funding would be a matter for Infrastructure NSW.
Cr Petschler said the figures for remediation were an early, worst/best case estimate.
He said the government and area health board had taken a "hardline" stance on the matter, and the council would see if remediation help was available.
"We think the site is ideal for several reasons," he said.
"One, it keeps it in public ownership; two, it gives us a chance to increase the number of beds for aged care, and it provides another 70 jobs.
"We're looking at ways in which if we are forced to do it alone and have to rehabilitate the land how we can minimise the cost of that, and whether that means restructuring the way we do it.
"For instance, Barroul House might have to wait until fairly late in the piece, rather than be restored early.
"We want to be in a position before the end of the year so that we have a clear picture of where we go on the basis (of) we get no support from government to clean up a government site, on top of which we've got to spend a million dollars to restore Barroul House."
On Tuesday night, councillors will be presented with a report in response to an October resolution from councillors that the council ‘‘prepare a business plan for the development of this site’’.
On Tuesday night, Kiama councillors will be told that during the planning stages documents have been prepared and reported to the council and further refined.
‘‘These plans together constitute the business plan,’’ council staff wrote.
Documents include financial feasibility studies, architectural plans, a capital expenditure review and the business case presented as part of the Restart Illawarra application.
