CURRENT operators of the Balranald Caravan Park have been ordered to vacate the premises by December, following a lengthy dispute with council.
Matthew and Dee Jess ran the park for five years, up to 2017, and were understood to have submitted a tender to extend their management a further two years.
At the time, council said the Jess’ had been successful in securing the tender, however were not satisfied with the current terms and conditions of the contract.
The disagreement between the two parties reached the Supreme Court of New South Wales in Sydney with a settlement reached last Wednesday.
Advisor to the operators, Peter Jess, told The Guardian the outcome was not the result the Jess’ hoped for.
“In council’s statement of claims they say they were losing money through the park. That’s not true,” he said.
“It was clearly demonstrated that year-on-year, the park’s revenue had increased.”
Peter said the Jess’ concerns were the money council was “meant” to put toward the caravan park.
“Council maintain the park reserve, but what the Jess’ found was that the money meant to be used to upgrade the park was used for recurring revenue, but not for the park,” he said.
Peter said the matter should never have reached the litigation stage.
“There was a process that should have been followed, whereby by mediation and conciliation,” he said.
“If council behaved in a responsible, corporate manner with the ratepayers at the forefront they could have saved themselves in legal fees.
“By adopting an adversarial approach, they have cost the ratepayers money that did not need to be spent, and will now have to recoup via rates.”
Balranald Shire Council general manager Michael Kitzelmann said as part of the transition of ownership, financial reporting would be transparent.
The legal fees for council for their part in the dispute will cost in the vicinity of $100,000.
Mr Kitzelmann said the council’s insurance would compensate council part of the fees, with funding also coming from the caravan park reserve.
The reserve holds funds used for capital works at the caravan park.
Mr Kitzelmann said the auditing would be completed externally and independently, with the results made public.
“The (caravan) park is an important community asset that has a key role to play in maximising investment in local tourism and the economy,” Mr Kitzelmann said.
“Council will in coming weeks share with the community how it now intends to manage the (caravan) park.”
Under the agreed court settlement, Matthew and Dee will be need to vacate the premises on or before December 1.
Mr Kitzelmann said the council regretted resorting to legal action to resolve the issue but said they “had no choice”.
“Council put the management of the (caravan) park to public tender after concerns were raised about governance and financial accountability issues,” he said.
“Both by external auditors and through the state government-initiated performance improvement order process.
“Following the tender process, Mr and Mrs Jess were offered a lease which they refused to sign.”
Mr Kitzelmann said with no lease in place, the operators were not entitled to remain in possession of the caravan park.
He said council took legal action when the Jess’ refused to leave.
“Council is pleased that the matter has been settled by both parties and that both can now move forward,” he said.
