KIAMA council endorsed the purchase of the Kiama Hospital site at their December meeting on Tuesday night.
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Council has agreed to buy the Kiama Hospital site from the Illawarra Shoalhaven Local Health District for $2.82 million.
A report provided the council with an overview of the proposed redevelopment of the hospital and requested endorsement to progress the project.
The council’s report estimated the total project development costs as $62,863,274.
Councillors endorsed the purchase of the Kiama Hospital site, based on the projected Long Term Financial Plan, with the inclusion of remediation costs.
In November, the health district rejected council’s call to remediate the asbestos contamination at the hospital site before selling it to the council.
The council had been in the process of buying the 3.3-hectare site from the health district for a 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 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 previously claimed it was the responsibility of the state government to remediate the site before the council buys the Bonaira Street property.
The council has estimated the remediation costs at $2.6 million.
The project has attracted $8 million ($4.8 million for the council and $3.2 million for the health district) from the state government via the $100 million Illawarra Infrastructure Fund.
The council has almost $11 million set aside in restricted funds.
Loans of up to $30 million will be sought.
The project’s timeframe shows that by June 2016, Kiama Hospital will no longer provide inpatient services, with the subdivision of the site and construction of Blue Haven’s new 134-bed residential aged care facility to start immediately after.
The new nursing home will be operating by October 2018.
The project also includes 36 independent living units and 22 assisted living units built.
“It’s been a long process getting to this point; a lot of work’s been done by the council and the council officers particularly getting us to here,” Mayor Brian Petschler said.
“We’ve got the basic outline of what we want to do, the concept plan.
“The issue of the residential will still be discussed later.
“It’s a big step for council… It’s a great site and keeps it in public ownership.
“We can get a significantly enlarged residential care facility for people who qualify for the aged care facility.”
The council has also faced criticism from residents over its plans to sell eight residential lots at the southern end of the hospital site for $1.2 million to help cash flow in the early stages of project.
The council has agreed to defer a decision on whether it will sell off the eight residential lots.
A ‘‘deed of agreement’’ is being drawn up which means the council can only use the site for the purpose of aged care.
The council also intends to spend $1million on the restoration of heritage-listed Barroul House, however this is flagged for the third and final stage of the redevelopment, and is not due for completion until May 2022.
Some works to stabilise the 1857 building are expected to take place beforehand.
Council will be seeking expressions of interest for a project manager in early 2015.
Council is aiming to prepare Development Application plans during the first half of 2015, and hope to have approval no later than September.
