Developers of hotel and hospitality school at Kangaroo Bay ask council for extension
The construction of an $80M five-star hotel and hospitality school on Hobart’s Eastern Shore may be years away as developers request more time – but it’s unclear if council will grant it to them. LATEST >>
Tasmania
Don't miss out on the headlines from Tasmania. Followed categories will be added to My News.
THE developers of an $80 million five-star hotel and hospitality school planned for Hobart’s Eastern Shore have asked for two more years to get the project started, citing the effects of coronavirus as among reasons why it has stalled.
The request by Chinese company Chambroad Australia came in a workshop with Clarence City Council representatives on Monday night, as a deadline for substantial commencement approached.
It comes after significant concerns were raised about the future of the project by aldermen in recent weeks and speculation the council may enact a buyback clause for the land if construction had not started by the end of October.
In a presentation to the council, Chambroad said the extension was requested due to the “unprecedented pandemic and its economic impacts” and that the further time would allow better assessment of the commercial viability of the project.
Chambroad said its request for an extension was supported by the University of Tasmania — who have agreed to run the hospitality training school — and the office of the Co-ordinator-General.
The company said UTAS was a “willing and supportive partner” for the development but it was “unable to make a final commitment” about its part in the development.
A UTAS spokesman said COVID-19’s impact on the tourism industry and projected international student numbers made projects like Kangaroo Bay “particularly challenging at this time” — and the institution supported the extension.
Under the request, the new date for substantial commencement would be October 13, 2022, with regular reviews at the six, 12 and 18-month marks.
Chambroad Australia director and general manager Finely Zhang said the developers were committed to the project.
“The Kangaroo Bay development has been massively impeded by the challenges of the COVID-19 pandemic, impacting the key tourism, hospitality and tertiary education sectors,’’ he said.
“Chambroad Australia is committed to working with council officers to address issues raised by aldermen.”
PROJECT TIMELINE
- Early 2016 – Chambroad and TasTAFE signed a heads of agreement for a hospitality management college at Kangaroo Bay
- During 2017 – Planning advanced with the development application approved
- In late 2018 – TasTAFE withdrew from the project and the University of Tasmania was approached
- In July 2019 – UTAS and Chambroad entered a memorandum of understanding for a hospitality management and training college at Kangaroo Bay
- In June 2020 – Chambroad receives construction tenders for all buildings
- September 2020 – Chambroad asks council for a two-year extension for substantial commencement of the project, citing the impacts of coronavirus as being among reasons for the project’s delay.
- October 2020 – Council to decide on October 12 whether to grant the extension, or to enact a clause to buy back the land.
The company said it would work with council to find an ongoing use for the site until the start of construction.
Clarence Mayor Doug Chipman said aldermen appreciated the opportunity to be given “detailed insight” into the challenges facing the project.
“I can understand their request for a two-year extension,’’ he said.
“What I now need to understand is what the implications for council are with the two options.
“What are the pros and cons of agreeing to the request and what are the pros and cons of exercising the clause to buy the land back.”
Ald Chipman said it was expected a report would be done on the proposal ahead of the ordinary council meeting on October 12, which will be live streamed online.
Greens’ planning spokeswoman Rosalie Woodruff urged the council to refuse the extension request and look at alternative uses for the land.
“Enough’s enough – public land should be for public good,’’ she said.
“So far the promised hospitality school is just a pipedream, and residents are left with a fenced-off prime foreshore site and the haunting prospect of an oversized development years off in the future.”
Originally published as Developers of hotel and hospitality school at Kangaroo Bay ask council for extension