News
23 October, 2025
Yass Valley Council Puts Crago Mill on Hold
Yass Valley Council will not proceed with full completion of the Crago Mill Precinct Project because of its current financial position.
Yass Valley Council will not proceed with full completion of the Crago Mill Precinct Project because of its current financial position.
Council has resolved to ‘discontinue the full completion of Stage 2’ because of the costs involved.
It will allocate $400,000 towards a structural assessment and design work related to the historic Crago Mill building and will look at undertaking further work on the building if other funding sources become available.
It will fence the mill building and will spend $500,000 landscaping the area. It will also demolish the existing administration building because of the cost of bringing it up to current occupation standards.
According to a report discussed at council’s September meeting, council is facing a “significant financial sustainability challenge” and has been advised by the NSW Office of Local Government to ‘pull out all levers’ to improve its financial position and sustainability.
A review has found that proceeding with full delivery of the second stage of the project at a minimum cost of around $11 million “is likely to erode council’s current financial position creating unacceptable risk”.
The Crago Mill Precinct Project is a $53 million redevelopment initiative in Yass. The first stage – including a new council administration building and library – is well underway.
Stage 2 was to have included demolition of the existing administration building in Comur Street, refurbishment of the historic Crago Mill building and construction of a new ‘co-working, commercial tenancy building’.
While demolition of the existing administration building would only cost around $255,000 , construction of a new commercial building would cost approximately $7.4 million and remediation of the historic Crago Mill building would cost up to $5.5 million.
Completion of a structural assessment and design work on the historic building is considered important to ensure the project is ‘shovel ready’ should grant funding become available. In the meantime it will be fenced off.
Landscaping of open space at the site could take up to two years with a view to enhancing ‘environmental and social outcomes’. Landscape treatments will include “the construction of paths, dark sky compliant lighting, seating, fencing and planting schemes which will reduce the reliance on irrigation (post establishment), fertiliser, enhance biodiversity and promote flora suitable to Yass’s climate and where possible exhibit flora of the region”.
Council staff will investigate the feasibility of subdividing the land identified for the new commercial development with a view to offering it for sale.
Cr Fleur Flanery said she was disappointed council was not in a position to proceed with the project because it would be “fabulous” for Yass.
At the same time she said she was cognisant of the impact on council’s budget and it would be inappropriate to proceed with the full completion of Stage 2.
She also spoke about the importance of having open spaces and landscaping that “reflect the community” – prompting changes to the original staff recommendation.
Cr David Carter said the issue was one of financial sustainability and it would be ‘prudent’ to put a stop to any further works until council’s financial position improved.
He said council was not abandoning a heritage asset.
“I hope further funding comes through but at this stage this is the right decision for us to make as a group,” he said.
He also suggested that commercial property was “not necessarily the core business of council”.
Cr Alvaro Charry said he strongly supported the mill precinct project because it would stand at the “heart and soul” of the Yass community.
He said not to continue fully with Stage 2 wouldn’t necessarily solve council’s financial problems “but would a very clear signal we are taking steps in the right direction”.
He said not to proceed with Stage 2 was financially responsible and in the best interests of the community.
Cr Adrian Cameron said the financial issue was over-riding.
“We need to stop and take pause,” he said.
Cr Cameron said it was important for council to fully understand the structural integrity of the historic mill before proceeding any further.
“We need to get the building assessed and fixed as quickly as possible,” he said.
Crago Mill (originally known as Barber’s Mill) was built in 1870 and has been used to produce bran, flour and breakfast cereals. During the Great Depression it was converted to a rabbit processing and freezing works. It was most recently used as a produce store and the surrounding buildings sold to council.
Read More: Yass, Southern Tablelands