Chambroad issues legal challenge over Clarence Council’s Kangaroo Bay buyback
The battle for Kangaroo Bay will soon go from council chambers to court, as developer Chambroad refuses to accept the Clarence Council’s decision to reclaim the land. LATEST >>
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The Clarence Council’s decision to begin the process to buyback land at Kangaroo Bay will be challenged by developer, Chambroad, which had hoped to build a hotel at the site.
On Wednesday, the company announced it had lodged a notice of dispute with the council over its decision last month to reclaim the land.
“Chambroad will do whatever it can to progress the construction of the hotel,” Chambroad project director Greg Hudson said.
“It’s important to remember this land was originally sold to Chambroad on the basis that a hotel be developed there and the land is in fact specifically zoned for a hotel.
“We have invested more than $12 million in the project to date and we are not going to simply walk away from it because the Clarence City Council has backflipped on its previous support for the project.”
The company bought the land in 2017 and had plans to build a hotel and hospitality school.
It ran into a hurdle when it was unable to secure an educational provider, which resulted in it dumping the idea of a school.
The council’s agreement with Chambroad included a clause that Chambroad needed to substantially commence development by a certain date; if it didn’t the council would initiate a buyback.
After several extensions were provided to Chambroad and the company prosed redesigns, the council voted to reclaim it, at a cost of $2.4m plus GST and stamp duty.
Clarence mayor Brendan Blomeley said the council was aware of the steps taken by Chambroad.
“Chambroad have notified Council they are disputing the legality of the buy-back being exercised,” Mr Blomeley said.
“As this is a legal matter we will not be making any further comment at this time, however will endeavour to keep the community informed on this matter.”
Parties will first go through mediation, but if the matter is not resolved, it could end up before the Hobart Supreme Court.
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