Whitsunday Regional Council rejects Eureka Group Holdings Bowen development request

A multimillion-dollar aged care provider’s plan to develop an ‘affordable rental retirement village’ at Bowen could have trouble getting past the council. Here’s why.

The 11 Dalrymple St complex was originally developed and operated for long term rental retirement living but was converted to short term accommodation during a subsequent mining boom. Picture: WRC

A $150 million company’s plan to open a new aged care facility at Bowen has hit a stumbling block in a dispute with the council over development costs.

Whitsunday Regional Council has deferred a request from ASX-listed Eureka Group Holdings to waive more than $500,000 in infrastructure charges, rates increases and development application fees associated with converting Port Denison Motor Inn back to its original use as an aged care facility, resolving to go back to the negotiating table to try to reach a compromise.

The 11 Dalrymple St complex was originally developed and operated for long term rental retirement living but was converted to short term accommodation during a subsequent mining boom. Picture: WRC

At the October 28 meeting at Bowen, Cr Gary Simpson said it was only fair that Eureka Group paid something towards the proposed change of use – from short-term accommodation to retirement facility – as any profits raised through the proposed new business “will go out of town”.

Development Assessment Manager Doug Mackay’s report to the council highlighted $86,000 in headworks contributions that appeared to have never been paid when the building was first approved for retirement living in 2001, and councillors agreed Eureka Group should at least settle this sum.

Eureka Group Holdings argues changing the use of the Port Denison Motor Inn back to a retirement facility will include ‘no physical change to the existing asset’. Picture: WRC

Eureka Group, which reported $6.28 million profit last financial year, is yet to buy the Dalrymple St motor inn site and the council accepted the company could walk away if its request was not met.

A Eureka Group spokeswoman declined to answer questions when contacted on Wednesday, but a letter from the company copied into the council meeting agenda stated the proposal was “only viable without council-imposed fees, charges and rate increases”.

Gold Coast-based Eureka Group Holdings owns 33 retirement villages, specialising in ‘affordable rental accommodation for low-income independent seniors’. Picture: WRC

The letter further stated the change of use would include “no physical change to the existing asset” and would result in “minimal impact”.

It argued the case for additional aged care facilities in Bowen to “satisfy significant unmet need for affordable housing by a vulnerable but significant section of the local population”, highlighting there was “only one rental retirement village in Bowen” and that it had “comparatively high” rental pricing and a waiting list.

Eureka Group Holdings declined to comment on its plan to open a new aged care facility at Bowen’s Port Dennison Motor Inn, except to say it was 'looking at a number of opportunities throughout Queensland' and that 'all official announcements will come through the ASX'. Picture: WRC