Townsville hotel developer says NAIF has wasted their time

A game-changing hotel project in Townsville is under review after the Federal Government’s Northern Australia Infrastructure Facility has baulked at funding it.

• Luxury 5-star hotel to be built next to Townsville casino
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A game-changing hotel project in Townsville is under review after the Federal Government’s Northern Australia Infrastructure Facility has baulked at funding it.

The Morris Group is planning an $80m five-star hotel and super yacht marina adjacent to its Ville Resort-Casino in Breakwater Island to cater for growing tourism demand.

But Morris Group owner Chris Morris said he was angry the development financier had wasted their time by encouraging them to lodge an application and then telling them on Wednesday it had been knocked back.

“We are putting the whole development of a new hotel on hold until we work out what to do. I don’t mind if they had said it at the start. We wouldn’t have wasted our time.”

Meanwhile, federal Northern Australia Minister David Littleproud says he will be asking questions of the fund’s CEO, Chris Wade.

“I was not involved in the process in any way. This advice was provided solely by the NAIF.

I’ll be putting questions to the NAIF’s CEO,” Mr Littleproud said.

North Queensland-based MPs are also wanting to know what has transpired.

Townsville federal MP Philip Thompson said he supported the project and would be speaking with Mr Littleproud and NAIF.

“NAIF went to (Mr Morris) and asked him to apply. I want to find out exactly what has changed. To Chris and his staff, I’m sorry this has happened,” Mr Thompson said.

“Chris’s project is perfect for (NAIF). It creates hundreds of jobs.”

Morris Group is also asking for feedback on why their had been an “about turn”.

There have been suggestions NAIF could look at co-funding the project after originally agreeing it could be a sole funder or that recent changes in the minister and NAIF board had caused a change in attitude.

A NAIF spokesman said the fund was an independent organisation and talked with a range of proponents and potential proponents early in the process.

“Neither NAIF’s Independent Board nor the responsible Minister have been involved in any discussions about this project,” the spokesman said.

“NAIF is happy to continue speaking to the proponent about how NAIF can assist the project and potentially take it to NAIF’s investment decision stage.”

The Morris Group’s chief financial officer, Penny Cottle, said they did not understand why there had been an about turn from preliminary discussions three months ago where it was indicated the project was one NAIF would feel comfortable supporting and financing.

“This development is something that Townsville is clearly in need of and another instance, again, of the government showing a massive lack of support for what Morris Group are trying to achieve in Townsville,” Ms Cottle said.

Originally published as Townsville hotel developer says NAIF has wasted their time