Central Coast Council financial crisis: Asset sales scrapped after $60m target achieved

The future of the remaining asset sales on Central Coast Council’s hit list – identified to help get the council out of financial disrepair – has been revealed as council reaches its $60m target.

Central Coast Council will not sell any more assets for financial gain.

The council has exceeded its $60m target from its asset sales program with Administrator Rik Hart confirming that council would not continue to sell assets.

“I do not intent to go hunting for any more assets,” Mr Hart told the Express.

“There will be no more sales for financial purposes.

Mr Hart has conformed the council would not sell any more assets for financial gain.

It comes as council announced its latest asset sales in Doyalson and Bateau Bay which took the total amount from the asset sales program to just over $62m.

The asset sales program was one of the key strategies that council used to get out of the financial crisis which saw the organisation plunge more than half a billion dollars in debt.

Money from asset sales was put directly into the $200m council needed to pay off for the unlawful use of restricted funds.

The council recently sold 200, 1550 and 740 Thompson Vale Rd, Doyalson for $5.5m as well as 10A Cynthia Street Bateau Bay for $1.8m.

Central Coast Council recently sold 200, 1550, 740 Thompson Vale Rd, Doyalson for $5.5m to reach its $60m target.

Hr Hart pointed out that out of the $62m in sales, the council made a 63 per cent profit partly due to the real estate boom brought on by the pandemic.

“$24m of that was actually profit for the value we held in our books,” he said.

“The timing worked really well for us.”

Mr Hart said there had been talk around the council selling the Doyalson land for $5.5m after purchasing it for $7m.

This 144ha parcel of land, known as Woodbury Park Estate, includes four lots with dilapidated and abandoned homes.

Mr Hart said the land was initially purchased by Wyong Council for the purpose of industrial

rezoning.

The Doyalson land was unable to be rezoned for industrial use.

Council also sold 10A Cynthia Street Bateau Bay.

“Wyong Council paid a premium price for it at the time but due to the environmental constraints the land cannot be rezoned for industrial which is why the price dropped,” he said.

Mr Hart said he was keen to look into the council’s land holdings that may be able to be used for affordable housing.

“I am also keen to talk to the Darkinjung (Local Aboriginal Land Council) about land that can be made available for social housing providers,” he said.

“This is something that can help towards the coast’s affordable housing issue.

“In saying that, all councils should be looking at their asset register. We should always be looking at our assets and identifying any that are lazy and not worth holding onto.”

Mr Hart said the council ended the financial year with a $46m surplus.

“There’s no pressure now, we have achieved everything we said we were going to do,” he said.

The only sale expected to go ahead in the near future is the sale of the old Gosford council building in Mann St which was announced earlier this year.

Council remains in negotiations with Landcom which has plans to turn the building into a TAFE campus and housing.