The financial toll from a devastating arson attack on the Lake Macquarie City Council headquarters has skyrocketed, with the latest insurance estimate reaching a staggering $41 million.
Ballooning Costs and Ongoing Repairs
Initially, the fire that ripped through the Speers Point administration building on November 27, 2024, was thought to have caused around $30 million in damage. However, the council's 2024-25 Annual Report and a recent insurer's reassessment have revealed a far more costly picture.
A council spokesperson confirmed to the Newcastle Herald that the estimate had grown by $11 million. "Figures have been adjusted as the insurer has worked through the building and learned more about its condition and the time and cost for repairs," they said. The final cost won't be known until reconstruction tenders are sought after the building is returned to council control.
The blaze destroyed $7.5 million in assets, including essential infrastructure like air conditioning units, elevators, data cabling, and office furnishings.
Court Case Reveals Alleged Developer Link
The legal proceedings related to the attack have unveiled startling allegations. In Newcastle Local Court, 54-year-old East Maitland man Tony Charles Graham pleaded guilty to acting as the getaway driver.
The court heard that Graham and the alleged arsonist, 44-year-old Scott Matheson from Bar Beach, were reportedly hired by a middleman acting for a 'big developer'. Matheson's case was adjourned, with a plea expected next week.
The pair were identified after Graham's vehicle was captured on CCTV at a Warners Bay McDonald's drive-through just ten minutes after the fire was ignited. When asked about the alleged developer link, the council stated that police investigations are ongoing and they are being guided by official advice.
Long Road to Recovery for Staff and Security
The attack displaced approximately 450 council staff, representing 40% of the workforce. After an initial period working from home, they have been operating from temporary premises in the former Ausgrid building in Wallsend since February 2025, with costs covered by the insurer.
The timeline for a return to Speers Point remains lengthy. The council expects the insurer to hand back the damaged building in early 2026, with the aim of staff returning by early 2027.
A council spokesperson said security reviews, which are standard procedure, are yet to be finalised. "We've also conducted a post-fire security review of the administrative centre and will consider additional security measures as part of the rebuild," they stated.
