NOWRA Anglican College will take over the Bomaderry Preschool, with council having reviewed submissions made during a community consultation period.
Sydney Anglican Schools will lease the Bomaderry Community Preschool in Birriley Street for five years at a cost of $1 per year, in line with other premises leased by community groups for preschools.
Seven submissions were received during the period, all objecting to the granting of the lease.
Among the objectors was the Shoalhaven Heads Public School principal.
The objectors claimed NAC had a commercial interest and would act as a feeder centre, guaranteeing enrolments into the college.
The transfer to the college had not been done by way of a public tender process, objectors said.
Parents were also concerned they would no longer have the opportunity to send their children to a community-based, secular and inclusive preschool catering for a broad spectrum of families.
Objectors believed NAC was not fully representative of the local community and should be charged the full commercial rental rate, not a peppercorn community rate.
A common theme of the submissions was the suggestion council was transferring assets of a public nature to the private sector.
Despite the submissions objecting to the move, council staff recommended the proposed lease be supported.
Councillors voted to accept the proposal from Sydney Anglican College.