Clarence City Council to reconsider extension of time and conditions for Kangaroo Bay hotel and hospitality school
The Clarence City Council has granted developer Chambroad an extension for its Kangaroo Bay development, but with one condition removed. HEAR FROM THE DEVELOPER >>>
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UPDATE, FEBRUARY 10:
CLARENCE City Council has granted a further permit to Chambroad’s $80m proposed Kangaroo Bay hotel and hospitality school development.
Council officers had recommended the council revoke its decision from a special meeting in late December and reconsider its position on the conditions it imposed.
Council will grant an unconditional 20-month extension for substantial commencement to begin by October 2022 and negotiate the conditions in place to allow the council to be updated on the project.
There had been a clause proposed to “acknowledge the challenges” that had confronted Chambroad due to the COVID-19 pandemic and their ability to meet deadlines, but this was removed by aldermen.
Clarence Mayor Doug Chipman said the removal of the reference to the pandemic was because some alderman were concerned if it was still here in 18 months time, the developers would be able to use that as a reason to ask for another extension.
He said he hoped Chambroad would now move forward and bring the project to fruition.
“They’ve now got the opportunity to pull it together,” he said.
“It was important that we [the council] avoided the financial and legal risks associated with not granting the extension and we also preserved the buy back option under the contract.”
Chambroad raised concerns with some of the conditions adopted by the council following its December meeting.
Chambroad Australia director and general manager Finely Zhang said on Wednesday the company remained committed to the project.
“We welcome the decision of the Clarence City Council, granting Chambroad until October 2022 to begin substantial commencement onsite,” he said.
“Chambroad Australia has already spent more than $10 million on the development and will now work with the University of Tasmania and the council to complete what will be a once in a generation project for the municipality and Tasmania.”
Last year, more than 2200 people signed a petition urging council to reject the extension and buy back the land.
FEBRUARY 4:
A CONTENTIOUS proposal for an $80 million hotel and hospitality school development on Hobart’s Eastern Shore will come before Clarence City Council again next week amid concerns by the proponent over council-imposed conditions.
Council’s monthly meeting on Tuesday night will consider an item about the Kangaroo Bay project, less than two months after the council granted the developers an extension of time to get the development underway.
In the meeting agenda, council officers have recommended that council revoke its decision from a special meeting in late December and authorise the council’s general manager Ian Nelson to write to Chinese developers Chambroad.
If approved by aldermen, that correspondence would include confirming the council’s grant of an unconditional extension of time to October 2022 and to negotiate non-contractual conditions which would allow council to be updated about the project’s progress.
Chambroad raised concerns with some of the conditions put forward by council following the December meeting as part of the extension, which were proposed to assist the council to monitor the project’s progress.
On Thursday, the council said aldermen would consider granting an unconditional 20-month extension of time to substantially commence the project.
A report is expected to be presented to the council meeting to “reframe” its approach to the said conditions.
Mr Nelson said under current circumstances, council could lose oversight of the project altogether if it did not provide an unconditional extension of time.
He said there could be consequences for council if the extension was not granted, such as losing its right to buy back the land if the extension of time was not finalised by April.
Mr Nelson said it could also include damages for failing to meet its obligations under the agreement it has with Chambroad.
“I have been talking to Chambroad to try to reach an understanding that protects the interests of ratepayers and council, while also recognising Chambroad’s rights under the sale and development agreement,” he said.
In October, Chambroad’s request for another two years to start the project was rejected after a tied vote at council.
More than 2200 people signed a petition urging council to reject the extension and buy back the land for public use.
But leading up to the subsequent meeting, Mayor Doug Chipman said council was forced to reconsider its position due to a legal matter.
The effects of the COVID-19 pandemic has been blamed as one of the main reasons for the project being delayed.
Alderman Luke Edmunds said he and his colleagues were led to believe Chambroad had accepted the conditions.
“I hope this haggling is not simply an attempt to run down the clock to extinguish the ‘buy-back’ once and for all,’’ he said on Thursday.
Alderman Richard James also questioned the need to reconsider the conditions.
Alderman Brendan Blomeley said it was a disappointing development, but added:
“What has dogged this project since day 1 has been the brazen, albeit effective misinformation campaign waged by a noisy minority hell bent on stopping development in our city,’’ he said.
Chambroad has been contacted for comment.
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