North Sydney Council rate rise: Norths Collective speaks out against rate hike of up to 87 per cent

A leading Sydney pub group has joined a chorus of calls opposing a massive council rate rise plan triggered by cost blowouts on the North Sydney Olympic Pool redevelopment.

A leading Sydney pub group has joined a chorus of calls opposing a massive rate rise planned by a north shore council as it seeks to rake in millions of extra dollars in revenue to cover cost blowouts.

Norths Collective – which operates hospitality venues including The Greens and Norths Cammeray – has echoed calls from other businesses and residents opposed to North Sydney Council’s plan to jack up rates by as high as 87 per cent from next financial year.

The planned rate hike would impact both homeowners and business owners and has been triggered by escalating costs associated with the North Sydney Olympic Pool redevelopment.

The project has been plagued by construction issues including errors that forced parts of the redevelopment to be dismantled and replaced.

The pool was originally due for completion in 2022 but due to delays is currently estimated to cost the council $122m to complete – $58m over the original $64m budget.

Council last year released four options to increase rates, ranging from 65 per cent to 111 per cent over three years.

Construction activity at the North Sydney Olympic Pool site.

In response to the feedback, council released a document over the weekend indicating it favoured a revised option of 87 per cent over two years.

This option would see rates rise by 45 per cent in 2025/26 and 29 per cent in 2026/27 taking the cost of minimum residential rates to $1200 in 2025/26 and business rates to $1400 in 2025/26.

Luke Simmons, chief executive of Norths Collective – one of the north shore’s biggest employers - said raising rates would come at the “worst time” for the business and hospitality sector.

Norths chief executive Luke Simmons.

North Sydney councillors will vote on the proposed rate rise.

“It’s a real concern and a challenge for businesses because it will be a further hit at a time when the cost of everything else is going up,” he said.

“We’re getting cost increases from every angle – food, logistics, wholesale costs, government increase and excises.

“We try as hard as possible not to pass those costs onto customers and that means we have to absorb more costs which is a big challenge.

Norths runs venues including The Greens at North Sydney.

“With cost of living hurting everyone, it’s come at the worst time.”

Feedback from more than 1000 residents has raised similar opposition to the rate rise with many submissions calling for the council to look at other ways of plugging its financial black hole.

Local politicians including State Liberal MPs Felicity Wilson and Tim James and Federal independent MP Kylea Tink have also issued public statements this week opposing the planned rate hike.

A council report stated the increase would address the council’s financial deficit, reduce loan borrowing costs, help pay for asset renewal maintenance, and clear a backlog of delays.

North Sydney Mayor Zoe Baker.

“The additional capital costs incurred during the redevelopment of the North Sydney Olympic Pool have weakened the financial position of the council and are expected to place further pressure on its financial performance,” a council report stated.

“(A rate rise will) provide council with additional revenue to support the growing infrastructure needs and services required for the expanding population while also helping to reduce the financial burden on existing ratepayers.”

Mayor Zoe Baker previously said she shared the “community frustration and anger” over the rising cost of the pool project, attributing it to “financially perilous decisions” made by the former council.

North Sydney councillors will vote at a meeting on February 10 on whether to support the rate rise.

If approved by councillors, an application would then be made to the Independent Pricing and Regulatory Tribunal which would have the final say on whether the rate rise will apply.

Originally published as North Sydney Council rate rise: Norths Collective speaks out against rate hike of up to 87 per cent