to offer Nowra Gateway site to Huscorp

for a bargain basement $990,000

By DAVID WHEELDON

SHOALHAVEN City Council will offer a developer the Nowra Gateway site for around a third of its value.

The 9500 square metre block sits next to council chambers on Bridge Road and the Princes Highway.

A large hotel and residential component is proposed for the site, over which council has been negotiating with developer Huscorp.

Council held a confidential extraordinary meeting on Tuesday, where it was recommended the land be offered at “the increased discounted price of $990,000”.

But a confidential addendum report before councillors showed there had been seven expressions of interest over the land, including one for $1.86 million for an area of 6273 square metres, about two-thirds the area being offered to Huscorp.

That offer equates to around $296 a square metre, compared to the $104 per square metre deal offered to Huscorp.

The addendum report from the general manager Russell Pigg also warned councillors about shortcomings in the financial arrangements the property steering committee was recommending.

“Council is reminded that the original purpose of negotiating the sale of this

land was to achieve a hotel development to complement the Shoalhaven Entertainment Centre.

“The proposal recommended by the property steering committee gives potential for the objective not to be achieved.”

The deal includes Huscorp gaining access to all the internal roads next door at council’s administration building, which could amount to significant savings in necessary infrastructure.

The access roads component was agreed to in principle, remaining subject to further assessment in the development application period and to legal negotiations over sharing the access.

The deal comes with other conditions.

Huscorp will be asked to agree that if a hotel is not built on the site, and council decides not to enforce its buyback option, then the full market value of the land would be payable.