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 Wollongong council hit with $2.6 million ICAC bill 

Wollongong council hit with $2.6 million ICAC bill

22/07/2008 8:00:00 AM
Wollongong ratepayers face a whopping $2.6 million legal bill in the wake of the city's corruption scandal.

A financial report to be tabled at tomorrow night's council meeting reveals the city's rocketing legal costs - with between $813,000 and $1.13 million spent on trying to reverse potentially suspect developments.

The council could not reveal the exact figure last night, but a comparison with last year shows costs have jumped by more than two thirds.

In 2006-07, the council spent $1.47 million on legal services and this financial year that has jumped to $2.6 million due mostly to "ICAC related matters".

Since administrators were installed in March the council has sought legal advice about three controversial proposals highlighted in ICAC's hearings.

In April the council withdrew its support for Frank Vellar's proposal for the historic North Beach Bathers Pavilion. The controversial developer, who engaged in "serious corrupt conduct" according to ICAC, wanted to transform the building into a modern restaurant and cafe complex on a 35-year lease.

Also in April, the council revealed it would challenge the consent for Mr Vellar's $100 million Quattro proposal at the junction of Keira and Flinders Sts in Wollongong.

Together with his then lover - former senior planner Beth Morgan - Mr Vellar managed to engineer the approval of the Quattro development which was rubber stamped on August 18, 2005.

To undo the consent the council has taken Mr Vellar, through his company Sebvell Living, to the Land and Environment Court where it must prove the development was "tainted by corruption".

The Mercury understands the council has investigated whether it could challenge developer Glenn Tabak's Victoria Square residential development.

Mr Tabak also admitted in ICAC hearings to having a sexual relationship with Ms Morgan who was assessing the $31 million project.

The council's legal advice suggested it would be difficult to overturn the Victoria Square consent given the building has been finished and is occupied.

The council's court challenges have come at a cost to the council which is attempting to claim $813,000 through insurance.

The report will be discussed at tomorrow night's meeting of Wollongong's three administrators.

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