Two organisations are vying for the chance to take over management of the former Byron Hospital site

The vision for the site, bought from the state government for $1 and slated to become a community hub, involves a mix of education, dining, health services, community facilities and other offerings.

A tender is set to be awarded soon for the old Byron Bay Hospital site. Photo: Christian Morrow

The future of the old Byron Hospital site should be a step closer this month, with a tender expected to be awarded for the management of the vacant facility.

Byron Shire Council voted on March 26 this year to put the former hospital’s management out for tender and interest was received from Byron Bay Community Association and Social Futures.

The council’s staff have recommended the tender be awarded to the organisation recommended in a confidential document when the matter goes before the ordinary meeting on Thursday, June 24.

They have also recommended the lease and management agreement should “include a clause that stipulates that any net profits generated are to be reinvested into community and social services delivered within the Byron Shire Local Government area following reimbursement to council of establishment costs, loan and building sinking fund repayments”.

The old hospital site in Byron Bay.

The state government accepted a plan to sell the site to Byron Shire Council for $1, to keep the property in community hands, in late 2018 after the new Byron Central Hospital opened.

“A tender was required to assist council in managing this high profile and time intensive facility so that the best outcome could be provided for the community,” the council’s staff said in their report.

“Being such a unique request, it was possible that council would manage the facility itself, however there was keen interest from multiple community groups and multiple tenders were received.”

The planned lease and management agreement would allow for parts of the premises to be sub-let for a range of uses, “including education, food and drink premises, information services, health services, community facilities, arts, cultural and creative services”, they said.

“The proposal is to attract a mix of commercial, not-for-profit and possibly government uses,” the report said.

The planned redevelopment of the site has been recommended to be financed by an internal loan from the council’s Water Fund.

“Council’s draft 2021-2022 budget … is formed on this basis.”