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Kangaroo Bay hospitality school and hotel developers committed to project despite setback, says director

The Kangaroo Bay hospitality school and hotel developers have reconfirmed their commitment to the $80 million project and will work with council after it failed to make a decision on whether to grant the company an extension of time to begin work.

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THE developers behind a controversial $80 million hotel and hospitality school at Kangaroo Bay remain committed to the project, says their Australian director after the company failed to secure an extension of time from council.

A Clarence City Council vote on a recommendation to allow Chinese developers Chambroad two more years to progress the project was tied and lost 6-6 on Monday night.

Artists impressions of the proposed development at Kangaroo Bay on Hobart's eastern shore.
Artists impressions of the proposed development at Kangaroo Bay on Hobart's eastern shore.

Council now has six months to consider the implications of its contractual obligations and whether it will or pursue a buy back of the land.

During a debate that went late into Monday night, discussion covered the level of community opposition to the project and whether council could legally refuse the extension.

Over 2200 people have signed a petition urging council to reject the extension and buy back the land for public use.

Anne Geard and Cheryl Davison handed a petition to Clarence City Council urging the buy back of the land at Kangaroo Bay. Picture: NIKKI DAVIS-JONES
Anne Geard and Cheryl Davison handed a petition to Clarence City Council urging the buy back of the land at Kangaroo Bay. Picture: NIKKI DAVIS-JONES

One of the reasons council was advised to allow another extension was the COVID-19 pandemic had presented challenges to Chambroad and the University of Tasmania.

Chambroad Australia director and general manager Finely Zhang said the company remained committed to the project.

“Chambroad Australia will now work with the Clarence City Council following its decision,” he said.

Chambroad Australia director and general manager Finely Zhang. Picture: RICHARD JUPE
Chambroad Australia director and general manager Finely Zhang. Picture: RICHARD JUPE

Councillor Tony Mulder said “the ball is now in Chambroad’s court”.

“If they are truly committed to the project as they claim, they will appeal our decision arguing that the extension should have been granted due to the pandemic,” he said.

During the meeting, Mayor Doug Chipman said instigating a buy back now meant council risked legal action from the developer and could end up paying up to three times more than the value of the land – or over $6 million.

jessica.howard@news.com.au

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Original URL: https://www.themercury.com.au/business/kangaroo-bay-hospitality-school-and-hotel-developers-committed-to-project-despite-setback-says-director/news-story/4580fa1514ea4d2dc1db7b8872cfeedc