Since the Shell Cove Marina was first proposed in the 1980's there has been one constant in the business plan. That is that Council would not be funding construction. Indeed, the quarterly Shell Cove report presented to Council says that it is Councils role to provide the land and it is Australand's responsibility to provide finance.
This was why Australand was allowed to take a bigger fee from project land sales than Council.The larger fee accounts for the fact that Australand is required to take on any commercial risk associated with the project.
Now that the business plan for the project has fallen over Council (i.e. ratepayers) are taking on the commercial risk yet Australand continues to collect the larger fee!
The business plan, as set out in the Shell Cove Management Agreement, tells us that all construction costs will come from either project funds (profits from land sales) or borrowings by Australand. We know there are not sufficient funds available from land sales to build the $140 million plus marina. That is why the project has stalled. Council has written to me stating that there is sufficient money to build the first of 3 stages in the marina ($30m). Then the money runs out. There is no money to build stages 2 or 3. Taking into account money already spent this will leave the project some $90 million short.Council has proposed to borrow approximately $20m to get stage 2 underway, but has no plan in place to finance the rest! Australand told their shareholders during an AGM that they have no intention of using shareholders funds to construct Council infrastructure. It follows that Council will have to borrow all of the shortfall in construction costs. After all, if Council shows they are prepared to borrow money for construction costs why would Australand risk their own money? Once Council has $20m of ratepayers funds sunk into the marina, they will have to continue funding it in order to get any value for money back for the ratepayers. This is not what we signed up for!
Council's own figures show that the Marina will be directly provide less than 50 jobs in tourism related retail. Is it good value for money for Council to borrow up to $90m to create 50 jobs? I think not.
There is a way forward for this project. A residential/commercial development on the coast near a major population centre will always be sucessful. We do not need to build a $140m Marina to make this project succeed. The biggest single jobs-producing aspect of this project is the associated business park, which is projected to create 1000 permanent full time jobs. Below is a press release I issued showing how we can benefit from these jobs without the huge debt associated with the Marina. It is time to start thinking outside the square when it comes to this troubled project.
MEDIA RELEASE
A new way forward for Shell Cove – the NBN
Peter Moran, Independent candidate for Shellharbour Council, today called on the Shellharbour City Council , Australand and the Federal Government to work together to find a new way forward for the troubled Shell Cove project.
“The current funding model has failed the community. That is why Council is approaching both State and Federal Governments to help fund the boat harbour construction. Meanwhile, the Shell Cove Business Park, expected to create 1000 permanent full-time jobs, languishes on the back-burner. The Business Park is not dependent on the construction of the boat harbour but Council chooses to put the boat harbour first. The Business Park is not expected to create a single job before 2018, and most likely not until at least 2020."
“I urge the Council to seek a new way forward, a way that will produce real jobs, real soon. Instead of asking rate-payers and taxpayers to relieve Australand of their burden to fund the project, Council should be requesting Australand to accelerate construction of the Business Park, using project funds, and asking the Federal Government for assistance to hook the Business Park into the National Broadband Network (NBN). The Business Park is planned to sit at the southern end of the Shell Cove project, just 4km as the crow flies from Minamurra, one of the test sites for the NBN. Shellharbour could host one of the first business parks in Australia located near a major population centre and connected to the NBN. That would be a real shot in the arm for the local economy and a boost for local jobs” Mr Moran went on to say.
“The current model for the project depends on a process that destroys a wetland in order to construct a marina that Council’s own figures show will directly create less than 50 jobs. The marina has been over 20 years in the planning and still we do not have a firm start date. Why hitch our community’s future to a failing plan when we could seize the opportunity create 1000 green jobs in the new economy?”
“I call on Shellharbour City Council, Stephen Jones, MP for Throsby, Gareth Ward, MP for Kiama, Anna Watson, MP for Shellharbour, Arthur Rorris, of the SCLC and all candidates for Shellharbour Council to support my plan.”
“The future is here. Let’s take advantage of it for the sake of ourselves, our children, our community and our environment” Mr Moran concluded.
Peter Moran
Independent candidate for Shellharbour City Council
0403 752838
