New doubts over $80M Kangaroo Bay hotel and hospitality school project as deadline nears
“Put up or shut up”: Clarence aldermen have raised concerns about whether a major project at Kangaroo Bay will proceed as a deadline approaches, as the developers ask to meet with council. SEE THE LATEST >>
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THE proponent of a hotel and hospitality school development on Hobart’s Eastern Shore has asked to meet with Clarence City Council next week, as aldermen raise fresh serious doubts over the project’s future.
The $80 million development has been proposed for Kangaroo Bay, with Clarence City Council in June saying it had a clause to buy back the land if substantial work on the project had not started by November.
The council sold the land to Chinese company Chambroad in 2017 for $2.44 million, and thee company last year signed a memorandum of understanding with the University of Tasmania for the hospitality school component.
A council meeting this week heard the developers would meet with council next Monday.
Council could either decide to enact its buyback clause or grant the developer a further extension of time to begin work.
It is understood council wrote to Chambroad and UTAS in July urging action.
Several aldermen have cast doubt about the future of the development, including Alderman Luke Edmunds who said: “We don’t want Kangaroo Bay turning into the Macquarie Point of the Eastern Shore”.
“Since joining the council I’ve supported extensions to the original DA to allow the development to occur,’’ he said.
“It’s time for the proponents to put up or shut up.”
Alderman Tony Mulder said he did not believe a building permit had yet been lodged by the developer, which he said put into question the November timeline.
“I think it’s unlikely that the hotel will commence within the current planning permit,’’ he said.
“The question becomes then is will council extend the permit, and I will be urging my colleagues not to do so, to not extend the contract and get this sorry mess behind us.”
Alderman Brendan Blomeley said the development had been a “divisive” issue for the community and he said it was “deeply concerning” substantial works had not been started.
“Frankly, the last thing we need is a site that lays untouched and an eyesore for decades. Our community deserves better, much better,’’ he said.
“If the hotel and hospitality school does not progress, there are many other community-focused facilities, such as an arts, cultural, historical and maritime precinct, that could easily take its place.”
Alderman Beth Warren said she understood talks were continuing and that a building permit had not yet been lodged.
“As each week goes on it becomes more unlikely I guess and I think we have to start looking at what might happen if they don’t meet the deadline,’’ she said.
“I think it’s an unfortunate year for anyone to be starting a major development and certainly a hotel with the current demand having dropped, so I think we should be seriously looking at plan B if they don’t.”
Ald Warren said she did not vote for the previous extension and would not vote for another.
The developers and UTAS were both asked to provide an update on the development but declined to comment to the Mercury.
In June, Chambroad said the project continues to progress, but said the COVID-19 pandemic had slowed some processes down.
At that time, the developer said it aimed to start construction onsite by November and planned to announce a successful pre-building tender operator by July.
The Clarence City Council also said it had no update and that council had not made any decisions to date on the project.
A State Government spokeswoman said the government was supportive of the project, but would not answer if it had been asked to partly fund the project, nor would it rule in or out providing financial support.
“The State Government and Clarence City Council have worked closely over many years to create and develop the Kangaroo Bay precinct, including transfer of Crown land to the council,’’ she said.
“The Government understands that discussions between the proponents and partners are ongoing. It’s too early to assess whether further support might be appropriate.”
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