The Community Environment Network (CEN) is calling on Central Coast Council to put a stop to its asset sales program, with sales to date having already exceeded the original target of $60M.
“Administrator Rik Hart has publicly declared that the 2020-21 financial crisis is officially over, and that Council is on its way to achieving a healthy surplus for the 2022-23 financial year,” CEN Chair, Gary Chestnut, said.
“Mr Hart has stated that $62M worth of property has been sold by Council since it commenced its asset sell-off in November, 2020, which means its $60M target has been reached.
“It makes sense that Council doesn’t need to sell any more land and we would like Mr Hart to declare a moratorium on land sales immediately.
“The community has heard many mixed messages about the need to sell Council’s assets including that it was a requirement for securing $100M in loans from a commercial lender.
“Promises have been broken: environmental land has been sold and community land placed on the chopping block; ‘fire sale’ prices have been accepted when the community was told that wouldn’t happen.”
Chestnut said with multiple properties still listed for sale, it was time for them to be withdrawn from the market.
He said shortly before announcing the selloff of assets in late 2020, Council had introduced a Land Transactions Policy (LTP).
“Clause 12 of this policy requires Council, as a minimum before selling land, must prepare a business case, land transaction plan and financial impact analysis assessing the strategic value of the land having regard to need, the geographic context, environmental values and applicable strategic plans,” Chestnut said.
“While the financial urgency of late 2020 may have given Council an excuse not to comply with Clause 12, there is no longer any financial need to rush through further asset sales.
“All remaining assets listed as part of Tranche 1, 2 and 3 of the asset sales program must be withdrawn from sale as an act of good faith to the community which continues to bear the brunt of higher water and land rates along with cuts to infrastructure and services.
“If Council wishes to go forward with the sale of any remaining assets, it should do so in full accordance with its own Land Transactions Policy.
“Now the financial emergency is over any failures to adhere to its own LTP should be treated as breaches of the Council’s Code of Conduct.
“The time for the urgent sale of assets has passed.”
Gary chestnut
“Mr Hart should tell the public whether he supports a moratorium on the continued Asset Sales Program and when a full business case report on any further assets will be presented to Council.”
Chestnut said a comparison of the table presented at the August, 2022, Council meeting which listed the assets that had already been sold against those listed for sale in November, 2020, and April, 2021, revealed that Council had not finalised the sale for over 60 lots that it had proposed to sell.
“The fact that over 60 assets remain for sale raises many questions,” he said.
“Why was so much property listed for sale in the first place?
“If the sale of around 37 lots reaped over $60M, what were staff and the Executive Leadership Team thinking when they endorsed the sale of so much more land than was required?”
Included in assets yet to be sold is the site of the former Gosford Council chambers in Mann St, which has been earmarked for a new TAEE building under a MoU with the State Government.
But a freeze on asset sales is not on the cards.
A spokesperson said Council’s financial recovery, assisted by disposal of assets that were surplus to requirements, has enabled it to invest extra funds into priority areas the community has indicated they want to see, such as remediation of roads, management of vegetation and assessment of development applications.
“Council will continue its program of disposal of property assets that are surplus to current and future community needs – with the funds being invested back into identified community focused needs.”
council spokesperson
“While the asset sales program is regularly reviewed, the current program is guided by previous resolutions of Council.
“Identification and disposal is undertaken in accordance with relevant Council policies, including clause 12 of Council’s Land Transaction Policy.
“Assets earmarked for sale are sold through an open market process and are publicly advertised, unless Council has resolved to sell direct to a particular buyer like a government department.
“All asset sales concluded and assets being prepared for sale are listed on the Council website.
“Current market conditions are likely to yield a positive financial outcome that will benefit ratepayers and the community as a whole.
“The on-going review of Council’s property portfolio aims to achieve operational efficiencies and help optimise future economic development, conservation of natural areas and social improvement on the Central Coast.”
The spokesperson said negotiations with TAFE and Landcom on the sale of a site in Mann St incorporating the former Gosford Chambers building are continuing with an agreement to extend the target completion date to December, 2022.
Terry Collins
Well if the council is now flush from the sale of OUR assets, is now a good time to fix the streets and roads destroyed by this excessive rain, it killing our private assets our cars bikes, and trucks, filling holes and tapping down with a shovel is not a permanent fix, is it?
Central Coast Council has no community consent or consensus to continue the non-essential disposal of community assets!
Its assumed discretion must stop.