Bega Mayor slams attack on council ‘integrity’ amid developer dispute

Bega Valley Shire Council Mayor Russell Fitzpatrick has hit back at claims the council purposefully slowed approval for two multimillion dollar projects amid an ongoing spat with the developer.

An ongoing legal battle over two multimillion dollar projects on the Far South Coast flared up again on Tuesday as the Bega Valley Shire Council Mayor hit back at claims the council slowed approvals.

Developer Core Asset Development announced earlier this year that it was taking the council to the NSW Land and Environment Court over alleged delays in the Sapphire of Eden and Australasia projects.

The $120 million luxury Eden complex comprises of 120 apartments and hotel rooms and was due to be completed in late 2023, about a year after work finished on the renovated Australasia Hotel, also in Eden.

Despite construction on both projects breaking ground, their future was in doubt according to CAD, with managing director Mark Toma blasting the council last week for what he labelled as “appalling behaviour”.

He claimed the Bega Council had “bungled” various consents required for work to be completed amid a dispute over a proposed roundabout adjacent to the Sapphire, with the Australasia Hotel in its final stages.

“The council’s poor handling of the various consents for the Sapphire of Eden has been going on for over one year – and six months on the Australasia – with the community the loser,” Mr Toma said.

Sapphire of Eden hotel and apartment complex. Picture: Core Asset Development

“Both developments would have generated much needed jobs in a regional economy and important hospitality and tourism infrastructure in an area where cruise ships have now returned.”

In a statement, Mayor Russell Fitzpatrick said accusations by Mr Toma that council staff had deliberately slowed or poorly handled the applications were “categorically untrue” and that staff acted in good faith.

“Council has been supportive of these two developments since their inception,” Mr Fitzpatrick said.

“Staff prioritised both of the original development applications, and are currently reviewing the modification for the Sapphire of Eden and the second development application for the Hotel Australasia.

“There is a proper planning process that must be followed. Until a development consent is granted or a modification application approved, there are no guarantees and work cannot commence.”

Mr Fitzpatrick said it was CAD special adviser John Palasty, alongside Mr Toma, who chose to set and announce opening dates for the Hotel Australasia before a second DA had been assessed.

“That is his prerogative, but council did not agree to being able to meet a date,” Mr Fitzpatrick said.

The Far South Coast mayor further claimed that Mr Palasty and CAD had repeatedly undertaken unapproved works at the Hotel Australasia, and had “blatantly” ignored orders to cease.

Speaking with local media last week, Mr Palasty said CAD would resubmit its application for the Sapphire of Eden, which would see the number of towers reduced from three to four with units already sold.

Bega Mayor Russell Fitzpatrick. Picture: Facebook

Ms Palasty further claimed that he had offered council $100,000 to investigate the design of a roundabout at the junction of Chandos and Imlay St at the heart of the dispute, in return for a construction certificate.

In response, Mr Fitzpatrick said Mr Palasty had already agreed to a condition requiring the construction of a roundabout for the Sapphire of Eden development.

“Council staff had advised Mr Palasty they would consider a modification application to remove the roundabout condition if Core Asset Development could provide evidence that the development did not trigger the need for a roundabout. These conversations are ongoing,” the mayor said.

“Mr Palasty has a valid consent to start work at the Sapphire of Eden site – yet he has chosen not to commence. Instead, he has initiated proceedings in the Land and Environment Court for deemed refusal of the modification application.

“We have made it very clear to Mr Palasty and other developers looking to invest in our shire that we currently have a significant increase in development applications, coupled with a shortage of planners, which is affecting our turnaround times on all DAs – we have been open and upfront about this.”

The dispute comes at a difficult time for the shire, which lost more than 450 homes in the Black Summer bushfires. After more than two years, many are now finally being rebuilt, clogging application processes.

Australasia Hotel, Eden. Picture: Facebook

“Rebuilding following such a traumatic experience takes time,” Mr Fitzpatrick said.

“We also have an unprecedented increase in development in the shire – from mums and dads looking to build a family home, to older people looking to downsize into a manageable property, to people who are moving into the area now they can work from anywhere thanks to the lessons we’ve learnt from the global pandemic, to property developers looking to put the shire on the map.

“These challenges are being faced by many councils across NSW, and while we have reallocated resourcing to expand our development assessment capacity, there is a significant shortage of planners across NSW.”

Mr Fitzpatrick said while he appreciated the interest in the shire by developers, the council also needed to balance the interests smaller scale – “but still important” – developments.

“Council has a duty to the community to maintain the integrity of the planning process and will not be pressured into making rash decisions,” he said.

“Our staff work extremely hard to process and support development applications, and to attack their integrity due to multiple factors outside their control is downright appalling.

“When people resort to name calling, you have to wonder why.”