QUESTIONS have been raised over council’s potential financial risk and how Motorcycling NSW will pay for the facility.
A document acquired by the Register relating to due diligence done on Motorcycling NSW revealed a number of points of concern.
The report advised Shoalhaven City Council not purchase the land until more detail was known about Motorcycling NSW’s business plan.
It also suggested council not proceed with the land purchase and lease agreement until proof of government grants and a letter of offer from a recognised financial institution had been received.
However the document stated that there was demand for such a facility and the economy of the Shoalhaven would benefit.
Motorcycling NSW general manager Daniel Gatt said the organisation had not yet had the need to show in detail how it would fund the proposal.
“It is a condition of our agreement that once the DA is finalised we will present that to council,” he said.
“Council has not spent a cent to date. Council will see our funding plan before its buys the land.
“There is no liability on council until we provide our financial bona fides. Council won’t buy the land until they are satisfied.”