Federation Council has to commit $2.27 million to Lake Urana precinct in order to get $9 million from state government

Federation Council has been informed its expression of interest for the project has advanced to detailed application stage which commits it to chipping in $2.27 million to the total budget of more than $11 million.

An application from council for financial hardship was rejected.

Part of the project involves purchase of land, but it could be leased backed to farmers to reduce council’s financial exposure.

The project has seven individual components aimed up at making Urana more appealing to tourists.

Councillors Paul Miegel and Gail Law cautioned the long-term impacts on council finances.

“This project has the potential to be a game-changer for the Urana region,” Cr Miegel said.

“However on the downside is the contribution council is required to make in order for this project to proceed.

“I really support the project, but we can’t afford to put millstone around our necks from a financial perspective.”

Cr Law said the council wasn’t flush with funds.

“The $2.27 million is not a drop in the bucket and we’ve got to think of the whole Federation Council area, not just one section,” she said.

But deputy mayor Shaun Whitechurch said it was a once in a lifetime opportunity.

“Urana is only going to have one hope getting this sort of project off the ground,” he said.

“I can only support the fact we’re never going to be able to invest $2 million to get $9 million to see a return on the socio-economic structure of the Urana area and the whole Federation Council.”

Cr David Longley said Corowa and other places in the council area would benefit from the project.

The council will receive an update on the project next month.

General manager Adrian Butler said the government was “flush with money” and urging councils to put forward big-ticket projects.

“You are in a situation where you are being presented with projects that the government has got an appetite to fund,” he said.