Council axes Wollongbar housing project in high-stakes property showdown
Ballina Shire Council has dumped its Wollongbar Medium Density Housing Project after construction costs nearly doubled — a decision that exposed deep divisions over debt, housing and the future of council-owned land.
In a 6–4 vote at last week’s Finance and Facilities Committee meeting, councillors declined all tenders and moved to sell the 12 residential lots instead.
The lowest construction tender came in at $9.86 million — almost double the December 2024 estimate of $5.18 million.
When land value and design costs were included, council faced an estimated $2.72 million loss if it proceeded.
Councillor Phil Meehan said the project had simply become financially untenable.
“We have spent enough. The outcome hasn’t been what we were hoping for,” he told the chamber.
“It is now time to move on.”
Council has already spent about $690,000 on design and approvals.
The land will now be brought back to council with a further report outlining how the lots will be sold.
Greens bloc fights sale
Greens-aligned councillors Kiri Dicker, Simon Chate and Erin Karsten, joined by Labor-backed Councillor Therese Crollick, opposed abandoning the project.
Cr Dicker said selling public land during a housing crisis was indefensible.
“I completely refuse to support the sale of residential public land in the middle of a housing crisis,” she said.
“I firmly believe that public land should have public benefit.”
She argued council should explore partnerships with community housing providers instead of exiting the project.
Cr Karsten said council was walking away from its original intent.
“We came together to try and do something for our community,” she said.
“We should at least have the conversation before we just shut that door.”
But supporters of the sale rejected suggestions council should shift into housing delivery.
“We’re not a housing provider,” Cr Meehan said.
He warned that changing direction to social or community housing would undermine expectations of residents who had already bought nearby land.
“We have to be open and transparent with people. That was not the plan.”
Community backlash over ‘low-cost housing’
The Wollongbar project has drawn strong opposition from some nearby residents who said they purchased land believing the estate would remain private residential housing.
Councillor Eva Ramsey said altering course would damage trust.
“People who have already built and bought in these areas did so based on a clear understanding of what they were getting,” she said.
“It’s about fairness. It’s about certainty.”
The lots remain zoned medium density residential.
Council has already spent about $690,000 on design work, planning approvals and consultancy fees for the Wollongbar project — funds drawn from the Property Development Reserve.
With the project now scrapped, that investment will not translate into council-built housing.
Councillor Phil Meehan rejected suggestions the money had badly spent at a time when the council was under financial pressure and increasing rates.
“It’s not wasted. It’s educational for us and for council in terms of future thinking around such projects,” he said.
“It’s very informative.”
He argued the work undertaken had given council valuable insight into construction risk, procurement constraints and market realities.
Endeavour Close: ‘selling off the silverware’
The fate of 26 Endeavour Close, Ballina — a 1.5-hectare industrial waterfront site — was also fiercely debated.
A motion to sell the site by public auction was defeated 6–4.
Councillor Simon Kinny warned against diminishing council’s long-term asset base.
“I don’t like selling off the silverware,” he said.
“We should not be selling off good assets.”
Instead, council unanimously approved $60,000 compensation to TS Lismore to assist relocation and resolved to call for expressions of interest to lease the site “as is” or for a purpose-built development.
The other key tenant at the site, the Rainbow Region Dragon Boat Club, will be relocated to a temporary facility at Cawarra Park, until such time as a permanent facility is built under council’s planned masterplan makeover of the area.
Cr Michelle Bailey said the market should be tested before any sale of the waterfront Endeavour Close property.
“Land isn’t going down,” she said.
“Let’s just research this a little bit further.”
The site’s future will return to council once expressions of interest are received.
Above- an aerial view of the council owned property at 26 Endeavour Close
Main Image: Artists drawings of Council’s original concept for professional workers rental homes at Wollongbar
Tamar Street office block retained
Council also rejected a proposal to sell the former Department of Communities and Justice building at 89–91 Tamar Street.
Only Cr Dicker supported the sale.
“We need to be future thinking,” she said.
“People are not working in offices in the future.”
Instead, councillors resolved to retain and lease the building, subject to further reporting and an inspection of the building prior to next week’s council meeting when this and other decisions will be ratified.
The office block is viewed as a potential long-term income-generating asset, though councillors acknowledged it was designed for a single tenant and may require reconfiguration.
Council under financial strain
The property decisions come as council faces major capital commitments, including the Alstonville Cultural Centre refurbishment and the Twin Bridges duplication project.
Loan exposure and funding pressures were repeatedly referenced throughout the meeting.
Supporters of selling the Wollongbar lots argued the estimated $6 million return would strengthen council’s balance sheet at a critical time.
Opponents warned that once residential land leaves public ownership, it is gone for good.
