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Negotiations regarding the Kempsey cinema will continue after council voted to endorse a new proposed timeframe for the project.
Councillors debated for nearly two hours at Tuesday’s extraordinary meeting over whether to continue negotiations with the Office of Local Government, which is the regulatory body regarding the Public Private Partnership that council has applied to enter alongside with Kempsey Central owners Gowings and cinema operators Majestic.
Council remains unable to sign off on legal contracts to commence the project until the Office of Local Government project review committee (PRC) provides a positive assessment of the Public Private Partnership.
Ahead of the meeting, Macleay Valley Business Chamber president Gary Scott spoke glowingly in favour of the project going ahead.
Mr Scott said the potential economic benefits of the complex negated perceived financial risks that accompanied council’s proposed $2m loan for the construction.
“Of course it comes with a risk. No business venture doesn't come with a risk,” Mr Scott said.
Mr Scott said that members of the chamber “wholeheartedly” supported the project going ahead.
“The cost of not doing this is a greater risk financially than going for it,” he said.
Before Mr Scott’s presentation, Cr Leo Hauville moved a motion to defer the meeting, saying that councillors didn't have enough time to go over documents received the day before.
Following 15 minutes of debate, the motion to defer was defeated, with Crs Saul, Hauville and Morris voting in favour of it, and the remaining councillors against.
Councillors then moved into debate about whether to endorse the new timeframe for the project, which would see council work to address the issues highlighted by the PRC.
Chief among these issues raised by the PRC were that council had not fully considered adverse comments made by independent consultants and that council had not made it clear that the public was fully aware of the financial risk of the project.
It was a debate where all councillors had their point of view heard
- Liz Campbell, Kempsey Shire Council mayor
Councillors then voted on whether to continue with negotiations and the new timeframe. The motion passed, with Crs Saul and Hauville voting against, and the remaining seven councillors voting in favour.
Mayor Liz Campbell called the vote a “good result” and said that council would now move to address the issues highlighted by the Office of Local Government.
“I think the result last night was a good result moving forward,” Cr Campbell said on Wednesday.
Cr Campbell said the lengthy debate gave all councillors an opportunity to air their thoughts on the project.
“It was a debate where all councillors had their point of view heard and we came to, from my perspective, a good decision.”
Council general manager David Rawlings said that the project was being considered from beyond a purely commercial viewpoint.
"There is no doubt that this project comes with some financial risk and council have endeavoured to explain those risks to our community. If we were purely making a commercial judgement more weight would be given to that risk.
"The discussion among councillors acknowledged the fact that the risk of not doing anything in the post-Pacific Highway bypass Kempsey, is too significant for the long term future of our community.”