FOR just how much longer can Port Stephens ratepayers be expected to prop up two of the council’s poorest performing holiday parks, Thou Walla in Soldiers Point and Treescapes at Anna Bay?
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That was the question posed by councillor Geoff Dingle following the revelation in the recently released financial report (2014/15) that both facilities had fallen well below expectation.
In the case of Treescapes [formerly Samurai] it was another year in the red, taking the total losses over the past decade to around $17 million.
‘‘Treescapes lost $29,000 in 2014/15 while Thou Walla raised a mere $27,000,’’ Cr Dingle said.
‘‘The financial trail for Treescapes has lost [this council] around $17 million. The sale of the Treescapes’ 10 cabins was a disaster, they originally cost council around $130,000 each and we were supposed to sell them to raise capital to build amenities, camp kitchen and install services.
‘‘We ended up selling them at a loss ... to Middle Rock for close to $20,000 each.’’
Cr Dingle believes the council should have accepted an offer of around $1.5 million from two years ago and walked away.
Thou Walla, on the other hand, made a profit of $27,000 but fell well short of the projected figure.
‘‘According to the council’s contract signed in 2013, contractor [Wilfey] should have returned a profit of around $440,000 in 2015,’’ Cr Dingle said.
‘‘The council staff argued this poor result was because of the storm in April, however the storm only really physically impacted on the tent sites not the overall performance.’’
Wilfey’s Andrew Daff said despite the decimation due to the April 2015 super storm, his company was still committed to, and was achieving, its agreed triple bottom line metrics in co-operation with the council.
‘‘We are now looking forward to the relaunch of Thou Walla’s innovative and unique tourism accommodation product in 2016,’’ Mr Daff said.
The council’s property services manager Glenn Bunny said that Tresecapes was performing in excess of its projected targets detailed in a business case in less than a year of operation and had not yet operated through the Christmas peak season.
‘‘The council went to the market to sell Treescapes in 2013 and 2014 and no financially viable responses were received. In addition, the Crown did not support any of the proposals and therefore would not have agreed to an assignment of the lease,’’ Mr Bunny said.
He said that the Wilfey contract would cease on October 29, 2016 [with an option to extend a further two years], to be followed by a review process.
‘‘Thou Walla is operated by private enterprise and is located on community land, therefore it cannot be sold.
‘‘The new glamping eco-tents were opened for one day in April 2015 before the storm uprooted many trees in the park crushing the tents. The damage formed part of an insurance claim ... which is ongoing and new product ordered with delivery and reconstruction expected in the new year.’’