Kangaroo Bay Hotel future hinges on Supreme Court decision
The Kangaroo Bay Hotel has been declared a ‘major project’, but there’s a glaring complication which could arise, even if it’s approved, as both parties claim ownership of the waterfront land.
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Even if the Kangaroo Bay Hotel is approved under the ‘major project’ assessment process, its future will likely still hinge on the outcome of a Supreme Court dispute around the ownership of the prime waterfront parcel of land the development is planned for.
This week Planning Minister Felix Ellis gave his blessing for the five-star boutique hotel proposal to be assessed as a ‘major project’, that is, by an independent panel as opposed to the Clarence Council.
It was the company’s second bid to be assessed as a major project after it was ruled ineligible by the former Planning Minister last year.
The actual plans this time remain the same, and developer Chambroad says it simply included more information about the impact.
“The government, after we failed on the first occasion, explained to us the real reason was they wanted a level of proof that a hotel could be a major project,” project manager Greg Hudson said.
“This project demonstrated on the second attempt there is about $500m worth of expenditure in the region and specifically 50 per cent of that is in Clarence and 50 per cent is the rest of the region as a result of building this hotel.”
On Thursday, Clarence mayor Brendan Blomeley said the decision to grant the special status ripped power away from the community.
“This is absolutely not the right decision … From our perspective it’s deeply concerning,” he said.
“This is just bypassing local planning authorities, that’s what this is about, let’s not split hairs here.
“It didn’t fit it 12 months ago, it doesn’t fit that now, the difference is it’s a new minister.”
Chambroad initially had approval for a hotel and hospitality school, and it was granted four extensions to substantially commence construction.
A clause in the sale and development agreement for the project specified that the council would have the option to buy back the land from Chambroad, if it failed to commence on time.
The parties are now locked in a Supreme Court dispute as to whether the council has the right to buy back the land.
The outcome of that matter could thwart the future of the project, even if it is approved by the panel.
“We are entitled to buy that land back, we will buy that land back,” Mr Blomeley said.
“It’s our land, they won’t be building on our land.”
Part of Chambroad’s argument is that it did substantially commence the build.
“Chambroad’s position is very clear, that is the land belongs to Chambroad,” Mr Hudson said.
Mr Hudson said the major projects process was the last hope for the hotel.
“It will be the end of the project if we were to not be successful, just like any project going through the application process,” Mr Hudson said.
“We could [pursue another hotel project if rejected], I think that’s unlikely, I think it’s more likely that we will see a high level of interest in the site as a commercial development for the future.”
Planning Minister Felix Ellis said he was aware of the Supreme Court dispute but that timing a matter for Chambroad.
He disagreed the community would not have say under the major projects process.
“Ultimately council will be able to feed into that process as well as all the local ratepayers,” he said.
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Originally published as Kangaroo Bay Hotel future hinges on Supreme Court decision
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