At its monthly meeting on Tuesday, December 20, council considered supporting a Department of Sustainability and the Environment proposal that a six month lease be granted to the Bathhouse lessee while the redevelopment

and new leasing process were being finalised.

In view of the delays, redevelopment is expected to be delayed until the second half of 2006. The current lease runs out in April.

Council's chief executive officer Victor Szwed said a modest lease period would ensure the Bathhouse contin`ues operating while the redevelopment and tendering processes were being finalised.

"This will also provide a clearer timeframe for bathhouse employees and businesses in the area," Mr Szwed said.

The report to council recommended the terms of the six-month lease be similar to the current lease terms and the lessee and community were advised of council's decision.

"Council has also been awaiting advice from the State Government on additional funding to cover the costs resulting from the redevelopment being delayed since late 2004," Mr Szwed said.

"The redevelopment was placed on hold as a result of the State Government's decision reversing its earlier approval of a new lease incorporating redevelopment."

The Bathhouse has been an icon feature in this region for over 110 years. It was last redeveloped in 1991 and helped in the economic resurgence of the region. Popular with locals and visitors, the Bathhouse is in need of refurbishment

and redevelopment to ensure that it provides a quality experience for many years to come.

Mr Szwed said newly elected councillors had met three times over the past two weeks to be briefed on this vital project and had discussed in considerable detail the issues and planning for a full redevelopment to be achieved.