Kiama Municipal Council on Tuesday night voted to approve a motion to further consider an unsolicited proposal and offer in relation to its holiday parks portfolio which was received from Reflections Holidays.
Council formally received an unsolicited proposal from Reflections last Friday and the offer was discussed by Councillors at a confidential meeting as part of April's ordinary meeting. The purpose of the discussion was to start the process of considering due diligence in accordance with Council's policy.
This potential strategic partnership will now be considered as part of Council's ongoing budget process with due diligence work commencing to assess the value and merits of the offer.
Kiama Mayor Cameron McDonald said the proposal represents a new and significant opportunity that deserves full consideration and could have vast benefits for Council, once the process has been completed.
"This is an exciting proposal that has emerged," Mayor McDonald said.
"It happens to land at a time during the final stages of our budget preparation.
"Because it has a material impact that changes our trajectory, it needs to be properly worked through before any final deal or final resolution is reached. There are many approval processes and sign-offs needed, and this is the start, not the end of the process.
"The proposed partnership between Kiama Council and Reflections Holidays could help shape the future of our tourism assets, while significantly improving Council's financial position.
"Reflections Holidays is the largest holiday park group in NSW with a well-established track record which reinvests all profit straight back into the 40 holiday parks, unique accommodation and camping grounds they operate in coastal and inland parts of the state."
Reflections Holidays CEO Nick Baker said: "We are genuinely excited by this opportunity to be considered as a key partner of Council and as part of the Kiama community and its future.
"Reflections has built its approach on working closely with communities, supporting local businesses and councils across NSW.
"We take pride in being a trusted partner and stewards in the places we operate, reinvesting all profit back into our parks to ensure they grow and flourish for future generations.
"We recognise the importance of these parks to the Kiama community and would welcome the opportunity to support their long-term success."
Mayor McDonald said the proposal could provide access to much-needed capital investment in Council's five holiday parks.
Council is currently working through a NSW Government-imposed Performance Improvement Order (PIO), requiring the organisation to return to a balanced budget and strengthen its long-term financial sustainability.
"Importantly, this is an option that was not on the table even a week ago," Mayor McDonald added.
"Until now, Council has been working with the information and pathways available to us to build a budget that meets the PIO and this does provide another option to consider.
"This is a complex matter and it's essential that we take the time to fully understand the implications before final decisions are made. We need to understand if the offer stacks up as our holiday parks portfolio is very valuable.
"Kiama has been named the NSW Top Tourism Town two years in a row so I'm not surprised we've received an offer on our holiday parks."
The draft budget will still proceed to public exhibition for 28 days, providing the community with the opportunity to review and provide feedback before any final decisions are made.
This proposal will now be considered alongside the existing measures as part of that process.
"The work that has been undertaken to date to understand our financial position and develop a responsible path forward remains valid and important," Mayor McDonald added.
"This work will continue but the pace and potential extent of changes to services and Council staffing will be reduced."
