Council’s October meeting was told a lack of suitable, quality housing is one of the major impediments contributing to the skills and servicing gap in Berrigan Shire and that this has clearly impacted the council’s skilled worker recruitment and is also a major issue for Murrumbidgee Local Health District and local aged care providers.
Council will investigate building the units on land it owns at 45 Lewis Cres, Finley.
In a report to council, deputy chief executive officer Matthew Hansen said council had $300,000 from the sale of 27 Davis St, Finley and also had access to about $250,000 from the recent sale of land in Lewis Cres. It would need to identify a funding source for the balance of the works.
“There is an argument that the council has a role to play in ensuring suitable housing is available for key workers needing to relocate to the shire for work, including direct provision,” Mr Hansen said.
The Lewis Cres townhouses may be the start of longer term council involvement in housing supply.
“Council staff are now able to start on the development of additional housing,” Mr Hansen said, explaining that 45 Lewis Cres was the first proposed project.
Construction costs are estimated at $780,000.
The recommended funding model for the project includes a $500,000 loan over 10 years with interest-only repayments; interest and other operating costs to be funded from rental income; and sale in 10 years with proceeds from the sale paying the principle and surplus (if any) used to fund the development of new housing. Rental income was estimated at $31,200 per annum.
Council has asked the CEO to prepare a design and construct specification for the two townhouses and a capital expenditure review, with both documents to be presented to council by February 2024.
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