Eden luxury hotel work stalls as Core Asset Development clashes with Bega Council over planning backlog

The delivery of two of the Far South Coast’s largest and most expensive projects to date have been thrown into jeopardy according to developers, amid an ongoing row with council over a roundabout.

The $120 million Sapphire of Eden hotel and apartment complex promised to bring a “new standard of luxury living” to the Far South Coast when developer Core Asset Development was first given planning approval by local council in late 2021.

Comprised of 80 apartments and another 80 hotel rooms, the project was due to be completed in late 2023, about a year after work on the renovated Australasia Hotel – Core Asset Development’s other big Eden project – was also due to wrap up, in mid 2022.

Despite construction on both projects breaking ground, their future is now in doubt, with work being halted on both sites amid an ongoing dispute with the Bega Valley Shire Council over a proposed roundabout adjacent to the four-storey tower complex, CAD claim.

Managing director Mark Toma blasted the council for what he labelled as “appalling behaviour”.

He claims the council had “bungled” various consents required for work to be completed, with the Australasia Hotel in its final stages.

“The Bega Valley Council has deliberately slowed the projects due to a roundabout dispute,” Mr Toma said.

“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.

“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.”

Large cruise ships returned to the port city of Eden for the first time in June, more than two years after they were shuttered due to Covid.

CAD claims both projects were expected to have created more than 1200 jobs and 300 ongoing positions, a majority of whom would be locals.

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

Mr Toma said CAD had led the charge in “revitalising the South Coast's hospitality sector”, but could not continue to invest millions of dollars in both projects when faced with continuing obstacles erected by the “incompetence of the council and its underlying agendas”.

“Previously agreed written commitments and development and various meetings to allow the construction of the projects to continue have been thrown out by council officers,” Mr Toma said.

“They now have made unrealistic demands, with the whole approval process bogged down over many months.

“Council officers have also advised us that the council have about 500 development applications sitting on their desks, with many dating back to the bushfires from two years ago.”

In a statement, the Bega Valley Shire Council’s director of community, environment and planning Emily Harrison said council staff had been working with CAD since the lodgement of the development applications for both the Sapphire of Eden and the Hotel Australasia.

“At the same time, council has been experiencing a significant increase in development applications due to an increase in bushfire rebuilds and general development across the shire,” Ms Harrison said.

“There is also a skills shortage in the planning field which has affected our ability to backfill vacant positions and recruit additional staff.

“These issues are being experienced by many councils in NSW.”

As a result, Ms Harrison said the council’s development assessment timeframes are currently longer than expected for all development applications, construction certificates, building inspections, occupation certificates, s138 certificates, and subdivision certificates.

Australasia Hotel, Eden. Picture: Facebook

“We have been very open with CAD, other developers, and the community about these challenges and what we are doing to address them. Most recently, we have employed a number of contract staff on a short-term basis to help address the volume of DAs, and we continue to prioritise bushfire rebuild and employment generating DAs,” she said.

“The number of DAs before council fluctuates, and are at varying stages – some have recently been uploaded to the portal awaiting initial review, other applications are on hold pending submission of additional information, some applications are awaiting allocation to a planner, and others under active assessment.”

Ms Harrison said there was a valid consent for the Sapphire of Eden which CAD was able to act on to commence construction of the development, but had instead submitted a modification application for the development which is under assessment.

Valid consent also exists for Hotel Australasia, Ms Harrison said, with another DA having been submitted for assessment.

Nonetheless, Mr Toma said that an appeal had been lodged with the NSW Land and Environment Court, and is currently before the court.

In a statement, Mr Toma also hit out at the State Government.

“It seems to us that the NSW Government is no longer interested in regional tourism,” he said. “The Planning Minister Anthony Roberts is refusing to meet with us.”

The office of Anthony Roberts has been contacted for comment, but did say that planning decisions were a matter for local council.