The Berrima Residents Association (BRA) and Business Southern Highlands (BSH) have joined forces to express their disappointment about the sale of the Berrima Gaol.
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"Community interests have been ignored, [and] been deliberately sidelined" BRA President Eric Savage said.
The jail was announced for sale on October 18 2021 through an expressions of interest campaign which Mr Savage said locals knew nothing about.
He said they were not consulted when it was put up for sale and were not notified about the sale, which was revealed on May 18 this year to developers the Blue Sox Group for $7 million.
Residents across the Highlands signed a petition, created in November, 2021, which called on the government to cease the tender for EOI in order for the WSC and community to be consulted.
The BSH business chamber also expressed concern around the sale with a press release proposing "a community buy-back to operate the gaol as a commercial enterprise" in an EOI.
The BSH, and BRA's EOI with other locals, proposed to follow the "social enterprise model" of Beechwood Gaol in Victoria and the Fremantle Gaol in Western Australia.
"Business Southern Highlands is obviously disappointed with the decision of the NSW State Government in relation to the Berrima Gaol," the release reads.
Mr Savage said while he understood the reason to sell the jail after it was closed in 2020, there was the opportunity to keep its legacy alive.
"When you think about what they would have to do to turn over investment, it is not compatible with the heritage," he said.
A statement from the Blue Sox Group about the development said they would work to accommodate the jail's history.
"The community can be assured that any reimagining of the sites future will be sensitive to all aspects of heritage," it said.
Mr Savage said the shared community vision was to transform the jail into a "world class museum" with tours and an arts precinct, a bicycle repair shop, a potential theatre and area for markets.
Cells would be repurposed into small-scale accommodation for visitors, and other cells would be leased for community purposes.
The jail, formerly known as the Berrima Correctional Centre, was opened in 1839 and housed maximum and minimum security prisoners.
It was also a prisoner camp in World War One for German mariners and then was operated as a tourist attraction before it was used to store munitions in World War Two.
"What will happen inside and outside the jail will define Berrima for the next 100 to 200 years," Mr Savage said.
The Blue Sox Group's proposal will see the jail transformed into a "unique hotel and entertainment precinct" information from the state government reads.
The development would include a "café, restaurant, bar, community and event areas, and spaces which will cater for small business opportunities such as antique and bookshops, personal services, art galleries, library and museum."
A statement from the Blue Sox Group said the project was in its infancy, but the desired outcome would be to "create a vibrant, family friendly community hub which the local community and visitors to the area will be able to enjoy for decades to come."
It stated that this vision could be fulfilled through the establishment of a "boutique style hotel accommodation" with an event space, hospitality venues, areas for the community to use, and spaces for small businesses such as an antique shop, art gallery bookstore or library.
Despite being unsuccessful, BSH expressed support to Blue Sox Group in the release, and looked forward to "...seeing the positive economic, employment and social impacts that the development of the gaol will deliver to Berrima and the region."
The Blue Sox Group statement said there would be "considerations towards public accessibility and how the history of the site may best be displayed to the public."
"Our vision for the site is founded on an underlying desire that any future use must be one of principally serving as a guardian of the history and heritage of the centre whilst bringing to the region a new and exciting place to work, visit, stay and enjoy," it said.
It continued to state that there would be community consultation in the planning and design process to see how the site could be repurposed, meet local needs, educate people about Berrima and promote local business opportunities.
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