Construction of Bega’s police station included a 13-month pause after the initial contractor went into voluntary administration. Photo: NSW Police.
A South Coast council has knocked back a request to waive more than $1 million in fees tied to a major construction project.
NSW Police wrote to Bega Valley Shire Council (BVSC), asking it to waive a combined fee of just over $1 million for its use of public land (UPL).
During the construction of the Bega Police Station, a site on the town’s Hill Street was used as a storage space.
Construction began in 2022, before Project Coordination entered voluntary administration in early 2024, when the estimated cost was $16 million.
New contractor, Sydney-based Pattersons Building Group, started on the project in March after the works were put out for a new tender.
Work recommenced in early 2025 and was completed later that year.
Following those difficulties, NSW Police Infrastructure and Assets Command Acting Assistant Commissioner Kylie Endemi APM asked for the fee to be waived.
“Given the circumstances of the original contractor’s insolvency, the constraints on public funding, and the significant community benefit provided by the facility, the NSW Police Force respectfully requests that council waive any outstanding use of public land fees associated with this project,” she wrote.
“We appreciate council’s support in bringing this important community facility to completion and thank you for your ongoing cooperation.”
But in a recent meeting, councillors voted to refuse the request.
Council papers state that BVSC policy was that larger construction projects weren’t given regular invoices for UPL fees.
“This approach helped to reduce the risk of applicants ‘overpaying’ or needing to have refunds processed if the construction schedule changed,” the papers state.
According to the documents, two UPL approvals were provided during the police station’s build.
During the meeting discussion, councillor David Porter questioned why the request was coming from the police, rather than one of the construction companies involved in the project.
“I guess I would question if we would normally entertain requests from third parties.
“If councillor Haggar was building a house, and I wrote the council and said, ‘Please don’t charge him for something’, would council entertain me as a third party about what he should pay?”
But the council’s director of community, environment and planning Emily Harrison said there was a direct connection between the NSW Police and the construction company.
“They were both the building company, or the construction companies, that were engaged by NSW Police to undertake the project.
“My understanding is that the construction company has had conversations with NSW Police, and they are now coming to us.”
Ultimately, councillors backed a suggestion from Mayor Russell Fitzpatrick that they refuse the request.
He said granting the waiver would be an “unfair” financial hit to the community.
“Any waiver of UPL fees would effectively transfer this cost burden to the Bega Valley Shire community,” he said.
His alternative motion also called for BVSC to write to Member for Bega Doctor Michael Holland, as part of a push to ensure all applicable UPL fees were paid.
“I acknowledge that the police are now over budget on the police station, and the problems with contractors, but we’ve had the same problems as council, ourselves, [in] trying to get things done.”
The two-storey Bega Police Station includes a public front counter, a custody area, a task force room, command offices, exhibit storage and staff amenities.
