Kiama Council’s retirement village now faces uncertain future

After disposing of its aged care home to Hall & Prior in April last year, Kiama Municipal Council on the NSW South Coast has called an Extraordinary Meeting over its retirement village.

On Friday, 2 April, the council said it will consider options for the future of Blue Haven Terralong, which was built in Kiama from 1979, on Tuesday (7 April). The village was completed in five stages and features a total of 203 independent living units.

“In compliance with the State Government imposed Performance Improvement Order, Council will table an independent Asset Condition Report for the retirement village at the meeting,” the council stated in a news release.

“The Asset Condition Report has indicated that funding in the order of $51.2 million is needed for maintenance works in the next 10 years to bring the facility from a standard of “poor” to “average”.

“Bridging the funding gap is likely to need support from other levels of government or innovative ways of managing and/or delivering the retirement village service.”

Acting Kiama Mayor Melissa Matters said this was a critical point in understanding the future of Blue Haven Terralong.

“We have been very open and honest about the fact that the amount of money required to maintain the buildings from Stages 1-5 is beyond what we currently have budgeted and planned, or expected,” she said.

“I share with the residents in their concerns and shock over the amount of funding needed. These Council assets are also their homes, and I know myself and my fellow Councillors understand the gravity of that.

“Our immediate focus is how we ensure financial sustainability for Council and how we pursue options to lock in that funding that is so desperately needed for Blue Haven Terralong.”

Council has undertaken a number of reviews of Blue Haven Terralong, including building condition assessments and a fire safety compliance works and service review to ensure it continues to meet its responsibilities as a provider.

Residents have been informed about the report and have been encouraged to read all the documents and facts associated with the condition report, which are available on the Council website and have also been supplied to the community gathering spaces.

Council’s Chief Executive Officer, Jane Stroud, and Director Corporate & Commercial, Joe Gaudiosi, will meet residents at Blue Haven Terralong next week to discuss the road ahead and respond to questions as they arise.

“I spoke recently at a meeting with residents and shared my concerns that the condition report makes it really plain that many millions of dollars are needed to be spent, far beyond what our Council budget can accommodate alone,” Jane said.

“Without considering Special Rate Variations or more innovative models of leasing, joint venture, divestments or whole of government solutions, we are stuck between a rock and a hard place with a series of very aged assets that need redevelopment and investment.

“With cost of living pressures everywhere, we need to find some solutions and think differently to help our retirement village residents continue to age well in assets that are safe, useable and modern.

“Sadly, we are a long way from that.”