The Crago Mill Precinct project had long been followed by controversy, especially around its multi-million dollar price tag. Photo: Sally Hopman.
A regional council has backflipped on the second stage of a $50 million development, in the hopes of being able to better balance its books.
Stage 1 of the Crago Mill Precinct Project is underway, which covers the construction of a new administration building and a new library, and is expected to be finished by late 2025.
A proposed second stage would include knocking down the existing administrative building, refurbishing the historic Crago Mill and the construction of a new commercial building.
Yass Valley Council (YVC) commissioned a review, carried out by external consultants AEC Group, about the impact moving ahead with Stage 2 would have on its finances.
The report found that any movement on Stage 2 would constrain the council’s cash reserves and affect its financial stability (when compared to only completing Stage 1).
It also featured modelling that estimated the total cost would be $56.2 million.
During a recent meeting, councillors took a vote on how they should respond to the report’s findings.
Councillor Fleur Flanery won support for her motion that would effectively press ‘pause’ on much of the planned Stage 2.
She said stepping back from the planned Stage 2 “disappoints me enormously”, but described the financial risk to YVC as simply too high.
“I feel that it would be fabulous for Yass, but I’m also highly cognisant, or highly aware, of the difficult situation that Yass Council [is in].”
It means the council won’t be moving ahead with Stage 2 as planned, though demolition of the existing council administration building will still go ahead.
The meeting heard the latter decision was driven by the high cost of repairs that would be needed before it could be put into use.
YVC staff will also consider how the land could be subdivided ahead of a potential sale.
Councillor Flanery’s motion also called on the council to set aside $500,000 for landscaping (in addition to funding covering a minimum of two years of landscaping maintenance), up to $50,000 for fencing around the Crago Mill site and $400,000 for structural assessment and design work.
Councillor Flanery also accepted a suggestion that she clarify wording in part of the motion, where she called for staff to prepare a report on how funding could be used in the project.
This means the council’s position became that it would be open to accepting either grant or beneficiary funding to support further work on the Crago Mill building (rather than using loans).
Councillor Alvaro Charry urged his fellow councillors to support this motion.
He argued it showed both Yass Valley residents and the NSW Office of Local Government that it was working to improve the council’s books.
“It acknowledges our financial reality that we cannot, at this time, responsibly commit millions of dollars to complete the redevelopment of the historical mill or build new commercial premises without placing further strain on our ratepayers.
“At the same time, it ensures that immediate and responsible steps are taken by this elected body, … [to] improve amenity and create a welcoming, culturally inclusive space for our community to enjoy.”
Councillor Adrian Cameron said the review represented a chance to “stop and take pause” on YVC’s financial situation and how it could best manage the Crago Mill site (especially around its structural concerns and historical elements).
In a foreshadowed motion, Mayor Jasmin Jones proposed requesting that a report be prepared for councillors within the next 18 months about funding opportunities so they could move forward with the Crago Mill Precinct.
“We still have grant applications live right now … I would hate to signal to the grant providers that we have discontinued a project.”
In a statement on Friday (26 September) following the meeting, a YVC spokesperson said the decision was a new start for the project.
“It has been estimated that not proceeding with the construction of the commercial building and refurbishment of the historic Crago Mill building will save $15 million over 10 years,” they said.
Further information on the Crago Mill Precinct is available on council’s website.
