Chambroad's $80m Kangaroo Bay hotel and hospitality school proposal faces next step

The drawn-out saga around a hotel and hospitality school on Hobart's Eastern Shore continues with council set to meet to once again discuss the $80m project. LATEST >>

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THE stalled $80m proposal for a new five-star hotel and hospitality school at Kangaroo Bay on Hobart’s Eastern Shore will again be considered by the Clarence City Council on Monday.

It comes almost two months after the developers of the project, Chambroad Australia, presented an alternative vision to the council, which included apartments and other commercial uses instead of a tourism and hospitality school.

This came after the University of Tasmania pulled out of that component of the proposal, saying the impacts of Covid-19 were behind their decision to withdraw.

At a workshop in June, Chambroad Australia outlined three options: to proceed with the project in some form, negotiate a commercial settlement with council for the land, or to proceed with the project as planned without securing an education provider.

The final option was described by the developers as a “last resort”, a report to Monday night’s council meeting said.

Council officers said a suggestion that apartments be included as part of the hotel building was inconsistent with planning scheme requirements.

An artist's impression of the proposed Kangaroo Bay development. Picture: SUPPLIED

Another idea put forward by Chambroad was that council may be interested in using some buildings for a community purpose, similar to Devonport’s Paranaple Centre.

Council officers did not recommend this on the basis that there would be a potential significant cost associated with such a development, in addition to issues of parking demand.

A commercial settlement for the site was also not recommended at this stage.

An alternative development meeting current planning scheme requirements was considered the best option, council officers said.

Earlier this year, the council granted the developers an unconditional 20-month extension for substantial commencement of the project to begin by October 2022.

Under the agreement between council and the developers, the council has the option to buy back the land if the project is not started by that date.

Land buyback push over $80m Kangaroo Bay project

THE Clarence City Council should direct the Kangaroo Bay developers to build their proposed hotel, but buy back the rest of the formerly public land, says a local community group.

The $80m development in Bellerive would be re-imagined to include apartments and other commercial uses in place of a hospitality school as part of a vision presented by developers Chambroad to the council on Tuesday night.

Last month, the University of Tasmania pulled out of a commitment to deliver a tourism and hospitality school as part of the project.

Earlier this year, the council granted the developers an unconditional 20-month extension for substantial commencement of the project to begin by October 2022.

Australian director and general manager Finely Zhang said Chambroad’s preferred option now was to proceed with the project, but to modify it.

One building would feature a 5-star hotel as well as a residential apartment component and the second and third buildings would change from being education facilities to commercial mixed use developments or a multipurpose community facility.

The second option presented to council was for Chambroad to negotiate a commercial settlement.

Mr Zhang said the company was not seeking a buyback arrangement because it had already spent six years and $11m on the project.

The third “last resort” option would to go ahead with the plans as approved.

Finely Zhang, the senior Chinese person in charge of Kangaroo Bay Hotel. Picture: RICHARD JUPE

Member of community group Kangaroo Bay Voice, Anne Geard, said there were elements of the proposal which had merit, but the community did not want to see apartments at the site.

“Many people in the community would love the hotel to be built – this is such an iconic area that a fabulous hotel everyone could enjoy, it would be perfect and something to be proud of,” she said.

“So maybe the council could say ‘build your hotel’ and we’ll buy the rest of the land back.”

Ms Geard said the company’s comments about the money they had already spent was “the risk you take as a developer”.

“They’ve spent a lot of money already on designs, architects, application fees, lawyers and PR – that’s a commercial decision they made to try and make this work,” she said.

“The [Covid] virus has changed things, but the project wasn’t viable before that, they’ve known that since July 2019.

“Kangaroo Bay Voice is not anti-development – we don’t want over development and something at such an iconic site should be for the benefit of everybody.”

Clarence Mayor Doug Chipman said the council would now consider the options and look to provide advice to Chambroad “in the near future”.

Alderman Tony Mulder said Chambroad had “regularly” offered to enter into a negotiated buy back of the land, “but stress they require a return on their investment.”

“It is their business decisions, aided by the Co-ordinator General’s inability to deliver TAFE and then UTAS that have brought them to this point,” he said.

“Leaving the land as a vacant eyesore will not give Chambroad a return on their investment and if they cannot come up with a commercially feasible alternative they are more likely to cut their losses, giving council the opportunity to buy back the land at a realistic price.”

Greens MP Rosalie Woodruff said the plan to include the hospitality school had been the “key argument” for Chambroad securing the prime public waterfront land back in 2017 and urged the council to go back to the drawing board on the project.

EARLIER:

THE $80 million development at Kangaroo Bay would be reimagined to include apartments and other commercial uses in place of a hospitality school as part of a vision presented by the developers to the council.

Last month, the University of Tasmania pulled out of a commitment to deliver a tourism and hospitality school as part of the project on Hobart’s Eastern Shore.

UTAS said the impacts of Covid-19 were behind the decision to withdraw from the project, with closed borders, restricted travel and global tourism constrained.

The development of the five-star hotel and hospitality school at Kangaroo Bay is backed by developers Chambroad Australia.

Earlier this year, Clarence City Council granted the developers an unconditional 20-month extension for substantial commencement of the project to begin by October 2022.

In a presentation to council on Tuesday night, Chambroad presented four options as a way forward.

Kangaroo Bay development artist's impression. Image: SUPPLIED

Clarence City Council Mayor Alderman Doug Chipman said the options included considering other uses for the approved buildings and considering negotiation of a commercial settlement.

“Chambroad clearly remains committed to seeing this project through and provided Aldermen with a range of options on what could take the place of the UTAS component of the project alongside the planned hotel development,” Mr Chipman said.

“Council will now consider these options and look to provide advice to Chambroad in the near future.”

Alderman Brendan Blomeley called for a Civic and Cultural Centre at Kangaroo Bays.

“This turn of events presents the ideal opportunity to deliver a truly world-class, five-star hotel at Kangaroo Bay as well as a multipurpose Civic and Community Centre that could be enjoyed by the whole community, along similar lines to the Paranaple Centre in Devonport,” he said.

Australian director and general manager Finely Zhang said Chambroad had sought other hospitality and tourism partners from educational institutions in Australia and New Zealand.

“Our conclusion is that a dedicated hospitality and tourism college partner with the capability to deliver up to a dual Masters degree level is unlikely to be identified before the SDA expires in October 2022,” he said.

Mr Zhang said Chambroad’s preferred option was to proceed with the project, but to modify it.

One building would feature a 5-star hotel as well as a residential apartment component and the second and third buildings would change from being education facilities to commercial mixed use developments or a multipurpose community facility similar to the Paranaple Centre in Devonport.

The second option presented to council was for Chambroad to negotiate a commercial settlement.

Mr Zhang said the company was not seeking a buyback arrangement as it has already spent six years and more than $11 million on the project.

The third “last resort” option would to go ahead with the plans as currently approved.

Mr Zhang said whichever process was adopted by council, it must be finished by March next year “to enable suitable partners to be engaged.”

Finely Zhang of Chambroad. Picture: RICHARD JUPE

He said another option could be a community engagement process to redefine the range of uses for the buildings.

“As the developer, Chambroad has demonstrated commitment to progressing the project,” he said.

“Both Clarence City Council and Chambroad have been disadvantaged and frustrated by the delays.

“The City of Clarence is growing rapidly through residential developments and it is critical to grow jobs within the municipality at the same time.

“The Kangaroo Bay development will activate increased daytime and evening accommodation and food and beverage opportunities for locals and visitors.”