Chambroad says Clarence Council has no right to buy back Kangaroo Bay

The battle for Kangaroo Bay will soon go to the Supreme Court, as the Clarence Council fights for the right to buy back the land.

The Kangaroo Bay $50m hotel proposal by developer Chambroad.

The company hoping to build a $50m hotel on Hobart’s Eastern Shore argues the Clarence Council has no right to attempt to buyback the land at Kangaroo Bay, as the fight for the prime parcel heads to the Supreme Court.

Chambroad was set to build a hotel and hospitality school at the site, but in 2022, plans for the educational facility were dumped, because a school could not be secured.

After going back to the drawing board, Chambroad was allegedly unable to meet the deadline to substantially commence development.

The council later voted it would buy back the land, because of a clause in its sale and development agreement which said it could if Chambroad did not commence on time.

Because the matter could not be resolved through mediation, the council is taking Chambroad to the Supreme Court.

The Kangaroo Bay $50m hotel proposal by developer Chambroad.

On Thursday, the company confirmed it had finalised its defence and counter claim, and was arguing the council had no right to buy back the land.

Chambroad now claims it had in fact substantially commenced development, and that its requests for several extensions of time were unnecessary.

“Council has acted unreasonably in refusing to grant an extension to the development,” Kangaroo Bay project director Greg Hudson said.

Kangaroo Bay Hotel, Project Director Greg Hudson. Picture: Chris Kidd

Chambroad argued, if it was not accepted the company had commenced the project, the council should have considered the most recent request for an extension.

The company argued the council’s refusal to do so was unreasonable, and based on the personal opposition of councillors.

“The majority of Clarence councillors, including the now mayor and deputy mayor, made public statements opposing the development, well before the issue was considered formally by council,” Mr Hudson said.

Mr Hudson said the legal process could mean the land was tied up for even longer.

“Unfortunately, by the time this protracted legal process is finished in the Supreme Court we could have completed the hotel construction and opened the new hotel,” he said.

“Sadly, the site will now sit there in its current undeveloped state for perhaps the next three years – versus the construction of $50m 4.5-star hotel.

The Clarence Council was contacted for comment.