ABC Radio news is today reporting that the State Government has asked the Derwent Valley Council to return $750,000 it was given four years ago towards the redevelopment of the Willow Court historic site. This follows similar action by the Federal Government and brings the tally of lost redevelopment funds to $1.5 million.
The council has been involved in a lengthy dispute with the Federal Government over its decision to withdraw funding for the project, even going so far as to launch a legal action which it quickly cancelled in the face of escalating costs. When questioned about the legal action, the council refused to comment – despite the matter being on public record on the Federal Court website. It is not known how much money was spent on the aborted legal action.
It is understood the council has sought legal advice on the State Government’s decision, and will be briefed by a lawyer at a closed council meeting this Tuesday night. Comment is welcome from the council and government on this matter.