The United Services Union (USU) says it has serious concerns over the financial viability of a decision by Kiama Municipal Council to shut down its central depot and set up in a new location.
Kiama Mayor, Cameron McDonald, yesterday announced the $6.3 million purchase of a prominent commercial property adjacent to its Works Depot on Belvedere Street.
The acquisition of the Shoalhaven Street site will unlock significant opportunities for both Council and the community, the Mayor said.
He said the newly acquired site will enable Council to reimagine the use of its current depot, which it has owned for nearly a century and has served as a hub for outdoor operations since the 1960s. After decades of incremental upgrades, the facility has reached its limits in terms of safety, functionality, and community value, the Mayor says.
“Our current depot site is outdated and no longer fit for purpose. By relocating to a custom-built facility at Minnamurra, we’re prioritising the safety of our hardworking staff, while also freeing up a valuable site here in the heart of Kiama for future development,” said Mayor McDonald.
He said the purchase was an unanimous decision by the newly elected Council.
The USU’s Stuart Geddes argues the numbers “simply don’t stack up”.
“While we are not opposed to the development of a new depot for staff at the current Minnamurra Waste site, the concern we have is the Council does not appear to have presented any costings regarding remediating the former depot site safe for residential construction,” said Mr Geddes.
“We understand the depot is built on a former gas works site that will need significant remediation work before the site can be sold.
“The council hasn’t presented the cost of doing any of this and there is no way of even telling if this decision will make commercial sense let alone leave enough money to fund a new facility at Minnamurra.
“In another worrying development, we have had this Council crying poor for the last two to three years and selling off assets at a whim, so it is concerning that they have also announced they are spending $6.3 million to purchase land adjacent to the old depot to develop,” he said.
Mr Geddes said Council staff represented by USU say there has been no consultation regarding yesterday’s announcement.
“The current depot contains services such as an on site carpentry workshop, a mechanical workshop and a panel beating workshop, but there has been no clarity as to whether all these services will be maintained in the move.”
“The lack of detail and transparency around this decision and the fact we believe full costings have not been presented to councillors is concerning, particularly when we have seen this council propose significant privatisation of services and service reviews of commercial assets in the past.
“For us it appears that the council should be providing further detail and if the costings and consultation haven’t taken place the decision may have jumped the gun,” he said.
Mayor McDonald maintains that while it’s a big investment, it’s also “a big opportunity” for the community.
“Our current depot site is outdated and no longer fit for purpose. By relocating to a custom-built facility at Minnamurra, we’re prioritising the safety of our hardworking staff, while also freeing up a valuable site here in the heart of Kiama for future development,” he said.
He said Council aims to rezone the Belvedere Street site for residential development, helping address the local housing shortage and making productive use of centrally located land a short walk from the train station and Kiama’s town centre.
“This strategic move aligns with our broader goals of fostering responsible growth and addressing pressing community needs,” said Mayor McDonald.
“We’re very excited to reimagine this site for residential use. It’s a suburban site that’s increasingly ill-suited to industrial operations, but is the ideal location to add much-needed housing. This project is just one example of Council working together to make bold decisions that serve Kiama’s long-term interests.”
Council envisages the the relocation and development plans will unfold over the coming years.
“There are lots of processes to be worked through – rezoning, masterplanning, design, environmental reports, safety inspections and workforce matters. All that said, this is a strong strategic decision, and our workforce has welcomed the news and looks forward to the opportunities this move will open up,” said Kiama Council CEO, Jane Stroud.
The Council says the land purchase will be paid over three years, “ensuring fiscal responsibility while enabling a smooth transition for Council operations”.
