Coast ‘facing office blowout’

Erin Pearson
SURF Coast Shire faces a multi-million-dollar budget blowout unless it finds a buyer for its Grossmans Road offices by June 30, according to a senior officer.
Corporate services director Stephen Wall said State Government’s refusal to buy the site for a Torquay College expansion could leave council without enough money to build its new $10 million offices on Surf Coast Highway.
Mr Wall advised council to begin seeking expressions of interest in the Grossmans Road site to avoid a funding shortfall.
“Our financial model showed a financial inflow next financial year from this sale but if by June no funds are acquired council will find itself in a difficult position,” he said.
“Council will have to seriously look at changing the assumption that the funds will come in that year.”
Mr Wall said he wanted to “put it out there” that council no longer had a memorandum of understanding with the Education Department to buy the Grossmans Road site.
The meeting did not discuss alternative funding sources for the project, such as a rates increase.
Council had budgeted to sell the land to the department under the former Brumby Government to help pay for the new offices, part of the shire’s $40 million “community and civic precinct project”.
But the coalition had announced before November’s election that it would seek to build a new secondary school rather than expand the college onto the council land.
The Independent reported after the coalition won the election that it would deliver its commitment with a $20 million stand alone secondary college in Torquay’s north.
Councillor Libby Mears said council must get the new process right.
“I’m concerned over any possible delays for secondary education in Torquay but these are very significant developments for the future,” she said.
Cr Ron Humphrey, who won a council by-election in September, said the shire’s financial situation was a “shock”.
Council will appoint a probity auditor and agent to oversee the sale of the Grossmans Road site.