Central Coast Council financial crisis: Assets sales exceed target of $60m

Two of Central Coast Council’s latest asset sales has seen the council exceed its target of $60m. See what’s been sold.

Central Coast Council has officially exceeded its target of $60m in asset sales to help get out of its financial crisis.

The issue is set to come before Tuesday’s council meeting with council releasing its latest asset sales in Doyalson and Bateau Bay which takes the tally to $62m.

Asset sales, staff reductions as well as the 15 per cent rate rise were some of the key strategies to help council out of the crisis which saw the organisation plunge $565m into debt and face the threat of bankruptcy in late 2020.

The asset sales, one of the key promises to secure emergency bank loans, have gone directly to paying off the councils $200m in the unlawful use of restricted funds.

Council has sold 10A Cynthia Street Bateau Bay for $1.8m.

The latest sales include 200, 1550 and 740 Thompson Vale Rd, Doyalson for $5.5m. This 144ha parcel of land, known as Woodbury Park Estate, includes four lots with dilapidated and abandoned homes. It was initially purchased by the council for industrial rezoning.

The other sale is vacant land at 10A Cynthia Street Bateau Bay for $1.8m. This is $1.28m over the valuation of the vacant property opposite the Cynthia Street Community Centre.

During the asset sales program, council has managed to cash in on the pandemic market boom with many of its sales well over the valuations.

Late last year the council sold Warner Industrial Park, along Sparks Rd and Hue Hue Rd in Jilliby, for $27m following a valuation of $19.5m.

Central Coast Council has sold 144ha on Thompson Vale Rd, Doyalson for $5.5m.

The council also remains in negotiations with Landcom for the sale of the Gosford council building in Mann St.

Earlier this year the council, Landcom and State Government announced plans to convert the iconic building into a vertical TAFE along with housing.

Administrator Rik Hart said the money from this sale would be on top of the $60m sales program.

“That money will be used on top of the $60m to pay back the unlawfully used funds,” he said.

A council spokeswoman has told the Express that negotiations are expected to be finalised by December.

The Central Coast Council is negotiating with Landcom over the sale of the Gosford council building. Picture: Sue Graham

Landcom has plans to build a TAFE campus at the old Gosford council building.

Central Coast Council’s asset sale program has seen many properties sold, with others removed due to strong community objection.

Administrator Rik Hart said once the target is reached, he hoped to remove many of the proposed asset sales.

The asset sales program has come with its share of controversy, with some of the proposed sales facing fierce community opposition.

Some of these include the youth refuge and long daycare centre near Rumbalara Reserve in Gosford, Wyong District Youth and Community Centre in Kanwal, a carpark in Bullion St in Umina and green spaces across the region.

Round one of the asset sales saw the potential sale of Terrigal Bowling Club however this was swiftly scrapped by former Administrator Dick Persson AM.

Mr Hart has previously stated that once the target is reached, he hoped to take many of the proposed asset sales off the list.

Some of the other sales have included the Warnervale Town Centre site at 236-260 Hakone Rd and 99-107 Sparks Rd for $16m and 15-23 Hely St in Wyong for $4m.

Mr Hart signalled the “end of the financial crisis” in May after the Independent Pricing and Regulatory Tribunal of NSW (IPART) approved the extension of the 15 per cent rate rise for the another seven years as well as a 28 per cent rise in water rates over the next four years.