At time of purchase, it was recognised that although the site was not part of any identified need or strategic plan at that stage, it was reasonable to suggest that properties such as 15 Cadell Street with its main street frontage, were rare and anticipated to retain its value in the immediate to long-term property market, while Council considered future options to utilise it.

Constructed in 1985, the building is in average condition with floor coverings and guttering requiring attention. In addition, the wastewater system is approaching end of life and, a building inspection has identified five (5) key recommendations to improve the building valued at $43,800 (ex GST) excluding the wastewater system.

The annual servicing cost of holding this property is $26,540 (insurance, maintenance, utilities, cleaning and includes $18,860 in depreciation). Council receives a minor rent of approximately $6,000 per annum from tenancy, plus rates and charges. Activation of the building for professional commercial or community use is challenging due to the condition of the building. Upgrade works to the building to improve the appeal requires budget.

At the time of purchase, Council excluded the property from the community land classification, meaning Council is not required to undertake community engagement when considering any uses for the property, including sale. However, although community engagement is not compulsory, it remains at the discretion of the Council should they wish to undertake community engagement as part of their decision-making process, as has occurred in this case.

The Council Administration will work with the tenants to ensure they remain fully informed throughout the process and, that appropriate time and protections are provided to accommodate the potential impacts for their business as an outcome of the future decision for this property.

• Decrease borrowings which would improve the Council's financial capacity
• Decrease interest charges by $42,000 annually and $470,542 cumulative over the 10 years of the long-term financial plan.
• Prevent further capital and renewal expenditure on maintaining the property.

• No changes to borrowings to improve the Council's financial capacity
• Ongoing interest charges of $42,000 annually and $470,542 cumulative over the 10 years of the long-term financial plan.
• Capital and renewal works are anticipated to be required in keeping the building open, with budget considerations for Building Inspection works ($43,800), pending wastewater upgrades ($10,000) and yearly maintenance ($2,000 / $4,000 per annum).

The Council Report and Minutes from the 19 January 2026 Council Meeting are included as an attachment to this consultation process. This Report includes a range of alternative options for this property.

The value of the property has been redacted in order to assist Council in achieving the highest possible return on this investment if the final decision is to sell the building, however, it is estimated that the value of the property would well exceed $800,000.