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Planning Minister Michael Ferguson says Kangaroo Bay hotel not eligible to be declared major project

The developer behind a $50m hotel proposed for Hobart’s Eastern Shore has been dealt a blow by the Tasmanian government – but the company has vowed to continue fighting.

Kangaroo Bay Hotel, Project Director Greg Hudson. Picture: Chris Kidd
Kangaroo Bay Hotel, Project Director Greg Hudson. Picture: Chris Kidd

Plans for a $50m hotel at Kangaroo Bay have hit yet another snag, with Planning Minister Michael Ferguson dismissing a push to have the development assessed under Tasmania’s Major Projects process.

It comes after the Clarence City Council rejected the developer Chambroad’s proposed 155 room-hotel earlier this year, prompting the company to seek an alternative avenue for approval.

In an effort to bypass the council, Chambroad indicated it would try to convince the state government to allow the project to be assessed under the Major Projects process, which would have seen it examined by an independent panel appointed by the Tasmanian Planning Commission.

The Kangaroo Bay $50m hotel proposal by developer Chambroad.
The Kangaroo Bay $50m hotel proposal by developer Chambroad.

However, Mr Ferguson scotched that idea on Friday, saying that while he believed the hotel was an “excellent local project”, it did not meet all of the criteria to be considered a major project.

“In making my decision I have taken advice from the government’s planning experts who have carefully considered the proposal and sought advice from a range of councils, government agencies and adjoining landowner,” he said.

“I have concluded that while the hotel would be significant for the local area, it does not have the regional impacts or complexity required for a major project.”

Only two projects have been declared as major projects to date: the new Bridgewater Bridge and the $2.7bn North East Wind Project.

“While the government would like to see this project proceed, it should be assessed without prejudice by the Clarence City Council as a normal development application,” Mr Ferguson said.

Planning Minister Michael Ferguson. Question time in the Tasmanian parliament. Picture: Nikki Davis-Jones
Planning Minister Michael Ferguson. Question time in the Tasmanian parliament. Picture: Nikki Davis-Jones

The council is now locked in a legal battle for control of the Kangaroo Bay land, for which Chambroad still holds the titles.

Chambroad project director Greg Hudson said the company still planned to proceed with the development.

“Chambroad is keen to resolve Clarence City Council’s attempt to stop the development and buy back the land through mediation that has already commenced,” he said.

“Chambroad has a long-term commitment to investing in Tasmanian enterprises and will continue to work with other Tasmanian businesses.”

Clarence Mayor Brendan Blomeley. Picture: Chris Kidd
Clarence Mayor Brendan Blomeley. Picture: Chris Kidd

Clarence Mayor Brendan Blomeley welcomed Mr Ferguson’s announcement, saying it was “the right decision”.

“Council has referred the matter of the buyback clause of the Kangaroo Bay Wharf Site with Chambroad for mediation,” he said.

“As it is an ongoing legal matter, I can’t speak to it further, except to say we will keep the community updated on progress as soon as we can.”

robert.inglis@news.com.au

Originally published as Planning Minister Michael Ferguson says Kangaroo Bay hotel not eligible to be declared major project

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Original URL: https://www.dailytelegraph.com.au/news/tasmania/planning-minister-michael-ferguson-says-kangaroo-bay-hotel-not-eligible-to-be-declared-major-project/news-story/03a616485e7d28a4589f81717d114cd5