COUNCILLORS have decided to forge ahead with the first step towards leasing out a kiosk at Newcastle Ocean Baths while trying to reassure the public the project is not a foregone conclusion.
After some argy-bargy about whether to push the decision back again, a move Labor councillor Declan Clausen called an attempt to "gag discussion", Newcastle councillors decided to ask the minister for local government for permission to grant a lease at the baths.
Almost all public submissions objected to the plan, with concerns centred on commercialisation and alcohol.
At Tuesday's meeting, independent councillor Peter Gittins said he felt it was "very pre-emptive" to move forward before the development application (DA) for Stage Two works is approved.
"Time is on council's side, I do not see the need to rush," he said.
Councillors already pushed the decision back in April, deciding to wait for new lord mayor Gavin Morris to be sworn in.
The proposed lease would be for five years with a further five-year option. The council needs the minister's consent because members of the public objected to the plans.
Several councillors and chief executive Jeremy Bath stressed Tuesday's vote was procedural only and did not lock in a future cafe operator or approve the Stage Two DA.
Independent councillor Mark Brooker reassured the community the council was not putting the cart before the horse.
"I do understand that there's fear in the community that we are racing headlong towards some predetermined outcome," he said.
"I don't believe we are.
"This is a fairly simple matter of process, I understand the anxiety, but I don't believe it's founded."
Councillors' approval came with strings attached: if a future operator wants to serve alcohol, City of Newcastle will need to undertake "broad community engagement" to see if the public supports it.
The council plans to put out an expression of interest to find a suitable operator for the proposed kiosk in 2026/27.
More than 170 submissions made on the proposed lease will be handed to councillors for review before any decision is made on an expression of interest.
A report to councillors estimates Newcastle Ocean Baths maintenance costs to be about $830,000 a year over a 30-year period.
The report said the rental income from a future cafe would represent a "small but responsible" contribution to the costs of running the baths.
Mr Bath said it was the third time in about a decade the council had asked the minister for permission to grant a lease longer than five years. He said it had typically taken six to 12 months to hear back on similar applications.
Mr Bath said the decision would have no bearing on the Independent Planning Panel and state government agencies' assessments of the project.
"What is being proposed tonight here is debate exclusively about a lease of a property," he said.
The council boss said he expects the Stage Two DA to be determined in the next six months, likely before City of Newcastle hears back from the minister.
Mr Bath said the council would not launch an expression of interest until it had ministerial consent.
Earlier in the meeting, Cr Morris' lord mayoral minute asking the chief executive to "carefully consider" incorporating public feedback into the next phase of the project had unanimous support.
Cr Morris acknowledged views on the baths were divided, but warned the facade was precarious.
"I do not want this project to be delayed, that would be irresponsible of us," he said.
"We all need to work together to ensure that this project progresses and that its ultimate design is something that we can all get behind, even if it's not the perfect solution for everyone."
Councillors have asked Mr Bath for a memo showing how he had considered public submissions and how any changes to the DA might affect the estimated cost of the project.
A request was made for any proposed changes to the design to be communicated with the public.
